Migration-regime liberalization and social security : political-economy effect / Assaf Razin, Edith Sand Razin, Assaf

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Razin, Assaf
Social security - Finance.; Immigrants - Economic aspects - Public opinion.; Emigration and immigration - Public opinion.
"The pay-as-you-go social security system, increasingly burdened by dwindling labor force, can benefit from immigrants whose birth rates exceed those of the native born birth. The paper examines adynamic political-economy mechanism through which the social security system influences the young decisive voter's attitudes in favor of a more liberal immigration regime. A Markov equilibrium with social security consists of a more liberal migration policy, than a corresponding equilibrium with no social security. Thus, the social security system effectively provides an incentive to liberalize migration policy through a political-economy mechanism"--National Bureau of Economic Research web site.
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