S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University CAFO Working Papers, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University

No 2010:1:
Will immigration in the future make it easier to support an ageing population?

Jan Ekberg ()

Abstract: Sweden and many other Western countries are facing a demographic development with an ageing population which will burden their public finances. Already today, the sum of yearly public expenditures in Sweden is about 50 percent of gross national product (GNP). Will future immigration alleviate the burden on the welfare system? Immigrants usually have a low proportion of old people and a high proportion of people of working age. Calculations for Sweden up to the year 2050 show, however, that the positive net fiscal contribution of immigrants is small even if they are well integrated on the labour market. The reason is that future immigration will increase the size of the population and thereby raise not only tax receipts but also public expenses. The fiscal impact is sensitive to immigrants’ integration into the labour market. If, for example, the rate of labour force participation of future immigrants will be the same as that of foreign born now living in Sweden, the fiscal consequences would be negative, but small also in that case. For most years up to 2050, the calculated positive/negative net contribution effect is less than one percent of GNP. The same positive net contribution could be achieved through a better integration of immigrants already living in Sweden.

Keywords: Demography; Forecasting; Immigration; (follow links to similar papers)

JEL-Codes: J11; (follow links to similar papers)

19 pages, February 9, 2010

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

Nek_wp01_10.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Andreas Mångs ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:vxcafo:2010_001 This page was generated on 2014-12-14 19:28:31