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Recherches économiques de Louvain
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Recherches économiques de Louvain
Article . 2014 . Peer-reviewed
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Research . 2011
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Migration and Social Insurance

Authors: Cremer, Helmuth; Goulão, Catarina;

Migration and Social Insurance

Abstract

SummaryMobility across countries is often suspected to affect the coexistence of different social insurance systems. A wide variety of social protection systems exist within the EU. Some are of Beveridgean inspiration (with universal and more or less flat benefits), while others are mainly Bismarckian (with benefits related to past contributions). Concerns about the sustainability of the most generous and redistributive (Beveridgean) insurance systems are often based on the assumption of (near) perfect and costless mobility. In reality, labor mobility remains limited. Such low levels of migration rates could, mistakenly, lead to the conclusion that migration would currently not be affecting the redistributive social insurance systems. We address this issue in a two-country setting, where mobility is costly and where individuals differ in mobility cost (attachment to their native country). A Bismarckian insurance system is not affected by migration while a Beveridgean one is. Our results suggest that the race-to-the-bottom affecting tax rates may be more important under Beveridge-Beveridge competition than under Beveridge-Bismarck competition. Finally, we study the strategic choice of the type of social protection. We show that Bismarckian governments may find it beneficial to adopt a Beveridgean insurance system.

Countries
France, Spain, Spain
Keywords

Social security, PENSION SYSTEMS, 330, H23, COMPETITION, Social insurance, Tax competition, [SHS]Humanities and Social Sciences, Seguretat social, Integració econòmica, Sozialversicherung, tax competition, H70, B- ECONOMIE ET FINANCE, Economic integration, BISMARCK, SECURITY, Mobility, Social insurance, tax competition, mobility, economic integration, Social Insucrance, Tax Competition, Mobility, Economic integration, Competition, ddc:330, social insurance, Competència econòmica, Steuerwettbewerb, Internationale Arbeitsmobilität, mobility, social insurance, tax competition, mobility, economic integration, BEVERIDGE, LABOR MOBILITY, economic integration, EU-Staaten, [SHS] Humanities and Social Sciences, Theorie, jel: jel:H23, jel: jel:H70

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This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
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influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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impulse
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