The effects of admittingi Immigrants: a look at Japan’s school and pension systems

Masatoshi Jinno and Masaya Yasuoka

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the effects of admitting immigrants to Japan on the welfare of native Japanese residents. The paper considers the imperfect substitutability between native and immigrant laborers in line with the pension and education systems. It is argued that immigration may have indirect negative effects, for example, imposing the additional burden of educating immigrant children who require additional support to master the Japanese culture, customs, and language. This research uses numerical data analysis of Japan. The findings indicate that admitting immigrants, even when they are not perfectly complementary, might increase the wage level and the utility of the natives. There are also direct implications on the type of pension system that is available for natives and immigrants. This study recommends that the defined replacement rate pension system is preferable for natives when there is a relatively substitutable relationship between natives and immigrants.

Keywords: immigrants; burden of schooling; pension; substitutability; complementarity (search for similar items in EconPapers)
JEL-codes: H52 H55 J61 (search for similar items in EconPapers)
Date: 2022-10-27
New Economics Papers: this item is included in nep-age, nep-cmp, nep-dem, nep-lab, nep-mig and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:115182

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