TY - JOUR
T1 - Immigration policy and demographic dynamics
T2 - Welfare analysis of an aging Japan
AU - Okamoto, Akira
N1 - Funding Information:
I am grateful for the insightful comments and suggestions of Professors Alan J. Auerbach, Ronald D. Lee, and Emmanuel Saez (The University of California, Berkeley). Additionally, I want to thank Associate Professor Yoshinari Nomura (Okayama University), who helped me in writing the computer program used for the simulations. I would especially like to thank two anonymous referees and an associate editor for their helpful comments and suggestions. This research was assisted by a grant from the Abe Fellowship Program administered by the Social Science Research Council in cooperation with and with funds provided by the Japan Foundation Center for Global Partnership. Finally, I also wish to acknowledge the financial support from the Ministry of Education, Culture, Sports, Science and Technology in Japan (Grant-in-Aid for Scientific Research (C) No. 20K01679).
Funding Information:
I am grateful for the insightful comments and suggestions of Professors Alan J. Auerbach, Ronald D. Lee, and Emmanuel Saez (The University of California, Berkeley). Additionally, I want to thank Associate Professor Yoshinari Nomura (Okayama University), who helped me in writing the computer program used for the simulations. I would especially like to thank two anonymous referees and an associate editor for their helpful comments and suggestions. This research was assisted by a grant from the Abe Fellowship Program administered by the Social Science Research Council in cooperation with and with funds provided by the Japan Foundation Center for Global Partnership. Finally, I also wish to acknowledge the financial support from the Ministry of Education, Culture, Sports, Science and Technology in Japan (Grant-in-Aid for Scientific Research (C) No. 20K01679).
Publisher Copyright:
© 2021
PY - 2021/12
Y1 - 2021/12
N2 - This study quantified the effects of immigration policies in an aging and depopulating Japan. Under a constant total number of immigrants, it focused on the optimal period for an immigration policy that maximized per-capita utility. Simulation results, based on an extended lifecycle simulation model with endogenous fertility, showed that a longer period immigration policy increased the future population and enhanced long-run economic growth. Conversely, a shorter period immigration policy enhanced economic growth in earlier years but less so in the long run. This study found that an optimal duration for an immigration policy, under the standard parameter settings for Japan, was nine years; this finding was derived through reconciling the merits and demerits between shorter and longer period immigration policies.
AB - This study quantified the effects of immigration policies in an aging and depopulating Japan. Under a constant total number of immigrants, it focused on the optimal period for an immigration policy that maximized per-capita utility. Simulation results, based on an extended lifecycle simulation model with endogenous fertility, showed that a longer period immigration policy increased the future population and enhanced long-run economic growth. Conversely, a shorter period immigration policy enhanced economic growth in earlier years but less so in the long run. This study found that an optimal duration for an immigration policy, under the standard parameter settings for Japan, was nine years; this finding was derived through reconciling the merits and demerits between shorter and longer period immigration policies.
KW - Aging population
KW - Dynamic overlapping generations model
KW - Immigration policy
KW - Simulation analysis
KW - Welfare analysis
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U2 - 10.1016/j.jjie.2021.101168
DO - 10.1016/j.jjie.2021.101168
M3 - Article
AN - SCOPUS:85115914838
SN - 0889-1583
VL - 62
JO - Journal of the Japanese and International Economies
JF - Journal of the Japanese and International Economies
M1 - 101168
ER -
