nep-dem New Economics Papers
on Demographic Economics
Issue of 2019‒09‒02
two papers chosen by
Héctor Pifarré i Arolas
Universitat Pompeu Fabra

  1. What is the Optimal Immigration Policy? Migration, Jobs and Welfare By Guerreiro, Joao; Rebelo, Sérgio; Teles, Pedro
  2. Medicaid and Mortality: New Evidence from Linked Survey and Administrative Data By Sarah Miller; Sean Altekruse; Norman Johnson; Laura R. Wherry

  1. By: Guerreiro, Joao; Rebelo, Sérgio; Teles, Pedro
    Abstract: We study the immigration policy that maximizes the welfare of the native population in an economy where the government designs an optimal redistributive welfare system and supplies public goods. We show that when immigrants can be excluded from the welfare system, free immigration is optimal. It is also optimal to use the tax system to encourage the immigration of high-skill workers and discourage that of low-skill workers. When immigrants and natives must be treated alike, it is optimal to ban low-skill immigration and have free immigration for high-skill workers. However, high-skill workers may choose not to immigrate when there are heavy taxes levied on all high-skill workers, natives and immi- grants alike. We use a calibrated version of the model to study how the optimal immigration policy responds to changes in the skill premia in the U.S. and abroad.
    Keywords: Immigration; optimal taxation; redistribution; Welfare state
    JEL: F22 H21
    Date: 2019–08
  2. By: Sarah Miller; Sean Altekruse; Norman Johnson; Laura R. Wherry
    Abstract: We use large-scale federal survey data linked to administrative death records to investigate the relationship between Medicaid enrollment and mortality. Our analysis compares changes in mortality for near-elderly adults in states with and without Affordable Care Act Medicaid expansions. We identify adults most likely to benefit using survey information on socioeconomic and citizenship status, and public program participation. We find a 0.13 percentage point decline in annual mortality, a 9.3 percent reduction over the sample mean, associated with Medicaid expansion for this population. The effect is driven by a reduction in disease-related deaths and grows over time. We find no evidence of differential pre-treatment trends in outcomes and no effects among placebo groups.
    JEL: I1 I13
    Date: 2019–07

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