Abstract
Abstract Immigration has a twofold impact on the sustainability of German fiscal policy. First, due to its positive impact on population size the fiscal burden spreads more shoulders i. e. the burden per capita declines (demographic effect). Second, the socioeconomic differences across natives and immigrants imply a structural effect, whose sign cannot be determined a priori. Based on the method of Generational Accounting the present paper finds that the overall impact of immigration on the sustainability of Germany’s fiscal policy is positive. This over all positive impact stems from the demographic effect, which outweighs the negative structural effect of immigration. Regarding the design of migration policies we find that considerable gains in sustainability may be reaped by attracting a larger share of high-skilled immigrants, while the positive impact of present immigration may turn negative if the integration of especially the second and third generation of immigrants into society fails.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
