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Immigration and the Survival of Social Security: A Political Economy Model
National Bureau of Economic Research [NBER]
Jan. 11, 2007
Excerpt: The main feature of the model is that immigrants are desirable for the sustainability of the social security system because the political system is able to manipulate the ratio of old to young and thereby the coalition which supports future high social security benefits. We demonstrate that the older is the native born population the more likely is that the immigration policy is liberalized and the social security system survives.
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