Migration and pension with international capital mobility

Being relatively low earners, migrants are net beneficiaries of the welfare state. Therefore, in a static set-up, migration may be resisted by the ent ire native-born population. However, it is shown that in a dynamic set-up, with a pension system (which is an important pillar of any welfare state) m igration is beneficial to all income (high and low) and all age (old and yo ung) groups. (C) 1999 Elsevier Science S.A. All rights reserved.