A simulation analysis of the longer-term effects of immigration on per capita in-come in an aging population

Immigration is a possible instrument for offsetting longer-run adverse effects of population aging on per capita income. Our “laboratory” is a fictitious country Alpha to which we assign demographic characteristics typical of a country experiencing population aging. Si-mulations indicate that a very high immigration rate with heavy concentration in younger working ages might be required to keep per capita income from declining. More rapid …