Public Pensions and Immigration Policy When Voters are Differently Skilled

Although immigration of workers generates a positive externality on members of domestic pension systems, many countries are very reluctant to allow foreigners into their labor markets. In a political economic framework, we explain this voting outcome by considering a young unskilled median voter who faces - in addition to a reduction of contribution rates - negative effects from immigration as well. Parts of this working paper are published under the title "Public Pensions and Return Migration" (Public Choice 134, 2008, 3-4, 163-178)