Abstract
We analyze the consequences of increasing MENA-to-EU migration on both sending and receiving regions. Using a general equilibrium model, we find that increasing MENA-to-EU migration generates significant changes in EU15 tax rates and income per capita. Compared to a non-selective immigration shock, selecting immigrants leads to a moderate reduction in tax rates, but to a greater impact on income per capita in the EU15. Emigration, especially if high-skilled, has a detrimental impact on MENA tax rates. Finally, the negative effects in MENA are mitigated if the brain drain leads to side-effects or is accompanied by increased education attainment at origin.
Original language | English |
---|---|
Pages (from-to) | 243-284 |
Number of pages | 42 |
Journal | Journal of Pension Economics and Finance |
Volume | 11 |
Issue number | 2 |
DOIs | |
Publication status | Published - Apr 2012 |
Externally published | Yes |
Keywords
- international migration
- poverty reduction