Unless action is taken, Sweden will soon have a large new group of poor pensioners – immigrants with a weak attachment to the labour market. This gloomy future scenario is revealed by a new government inquiry on the pension system carried out by researchers from the School of Business, Economics and Law of the University of Gothenburg on behalf of the Social Council at the Ministry of Social Affairs. But the inquiry also shows that there are ways of improving the expected standard of living.
"When we looked at the economic resources of immigrants from a country outside the OECD area, we found that this group has far worse prospects of achieving a high standard living as pensioners than those born in Sweden. And the public pension system in its present form will not succeed in evening out these differences when the pensions are taken," says Lennart Flood, professor of economics and one of the members of the inquiry.
The better solution: stop letting in low-skilled immigrants. Will the pain on the public purse ever become large enough to stop the influx of the poor? This isn't the 19th century with lots of factories to give them jobs.
|Share |||By Randall Parker at 2011 November 08 07:58 PM Immigration Economics|