Is immigration an advantage for Italy?

Denys Rudyi - Fotolia

JS - 02/2020

The Italian social security agency INPS (https://www.inps.it) is currently examining the effects of migration on the Italian pension insurance.

A large part of the immigrant population is young, so that they are necessary as long-term contributors in the aging Italian society. The immigrants are also more willing to take on work that Italians do not want to do, e.g. to help with the harvest.

Another factor is the emigration of Italians with technical or university education abroad, so that the need for contributors continues to increase.

From this point of view, immigration appears to be essential to the Italian pension system.

According to experts, including those from the field of statutory pension insurance, the positive effect is confirmed by a look at public finances. According to this, the social contributions and income taxes paid by immigrants in Italy exceed the social expenditures for immigrants in the billions.

And in the long run?

How immigration will affect the pension system in the long term can be observed with further information such as population growth within the group of immigrants.

From a social security point of view, Italy has already had good experience with the integration of immigrant people. In 2002 a law was passed whereby people without a work permit could obtain a residence permit and a work permit. The employer only had to pay 700 euros in social security contributions and grant an employment contract for one year. In this way, around 700,000 people, e.g. from Albania, have been integrated into the social security system as contributors over the long term.

And in Germany?

In view of the aging of German society, it can also be assumed that the German economy and the pension system are dependent on immigration. However, no concrete statements can be made with regard to people with a migration background from data from the German Pension Insurance. Statutory pension insurance only covers a person's citizenship. Anyone who has assumed German citizenship in the course of their insurance life cannot be distinguished from those who were German citizenship from birth.

Further information on the topic for Germany can be found in: Foreign insured persons and pension recipients in the statutory pension insurance, Biber, Ulrich, Stegmann, Dr. Michael, German Pension Insurance 04/2019.