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Migration and Long-Term Fiscal Sustainability in Welfare Europe: A Case Study

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The recent high immigration rates in Europe pose challenges to host countries. How does the magnitude of mass migration affect a country's fiscal sustainability and its welfare system? This case study uses generational accounting to analyze potential repercussions of migration on the sustainability of public budgets. As this paper considers the more recent assumptions of migration and economic development, it provides clear evidence that fiscal sustainability of welfare systems in Europe is likely to be negatively affected by nonselective migration of low-qualified workers. Our findings suggest the implementation of an all-European immigration policy similar to those in the US and Australia.
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Keywords: ACCOUNTING; FISCAL SUSTAINABILITY; INTEGRATION; MIGRATION; WELFARE

Document Type: Research Article

Publication date: December 1, 2018

This article was made available online on August 7, 2018 as a Fast Track article with title: "Migration and Long-Term Fiscal Sustainability in Welfare Europe: A Case Study".

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  • As one of the world's oldest professional journals in public finance, founded in 1884, FinanzArchiv (FA) publishes original work from all fields of public economics which are of interest to an international readership, e.g. taxation, public debt, public goods, public choice, federalism, market failure, social policy, and the welfare state. Special emphasis is on high-quality theoretical and empirical papers on current policy issues.

    FA is a peer-reviewed journal commited to a prompt turnaround of submissions.

    FA is listed in the Social Science Citation Index (SSCI), in Current Contents/Social and Behavioral Sciences, in Econ Lit, in the Journal of Economic Literature, in IDEAS and RePEc and in the International Bibliography of the Social Sciences.

    Subscriber access to FinanzArchiv: Public Finance Analysis is no longer available on Ingenta Connect. Please go to https://www.mohrsiebeck.com/en/journal/finanzarchiv-fa to access your online subscriptions to these titles.

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