Workers who relocate from one EU member state to another become subject to the  fiscal system, including the public pension program, of the destination country. Data on public pension contributions and benefits are used to estimate the change in the present value of lifetime wealth for "representative" workers in 7 EU countries that results from switching from one public pension program to another. Migrants may experience changes in net public pension wealth as great as 25% of lifetime wealth for some origin/destination pairs. Illustrative calculations suggest that the welfare effects of migration are quantitatively important for some EU countries.

David E. Wildasin / dew@davidwildasin.us