VOLUME XVI
SPECIAL NUMBER 2008

INMIGRATION AND FINANCIAL SOLVENCY OF THE PENSION SYSTEM AFTER NORMALIZATION OF 2005
 
INMACULADA DOMÍNGUEZ-FABIÁN
BORJA ENCINAS-GOENECHEA

Universidad de Extremadura
 
This paper has two objectives. First, to describe the structure of the immigrant population that contribute to the Public Pension System in Spain. This analyse will be carried out taking account the Continuous Sample of Working Histories (MCVL) and considers variables like: country of origin, age, sex, age at which they began to pay Social Security, days paid and basis of payment. Our second objective is to analyse the solvency of the system taking into account the Internal Rate Return (IRR) of contributions and pensions for the immigrant population. The projections and calculus carried out, with the data of the MCVL, show that the pensions that the system will give to the immigrant population are not actuarially equivalent to the contributions paid. This allows us to affirm that the immigration population will not solve the pension problems and will imply a bigger deficit. The conclusions are disaggregated according to the year the inmigration population began to pay (after the regulation process of 2005 or before it) and with respect to the Human Development Index at the country of origin.
 
Key words: Immigration, solvency, MCVL.
JEL classification: G0, H0.

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