Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/35432 
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers No. 4166
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper uses an overlapping generations model with international labor mobility and a politically responsive fiscal policy to examine aging in developed and developing regions. Migrant workers change the political structure composed of young and elderly voters in both labor-receiving and labor-sending countries. Numerical simulations show that the developed region benefits more from international labor mobility through the contribution of migrant workers as laborers, savers, and voters. The developing region experiences significant growth in all specifications but benefit more under international capital mobility. Restricting political participation of migrant workers in the developed region produces inferior growth results.
Subjects: 
Population aging
overlapping generations
endogenous fiscal policy
international labor mobility
international capital mobility
JEL: 
E62
F21
F22
F43
H30
J10
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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