Kyiv School of Economics invites to the Academic seminar by Sergii Kiiashko on "Labor Market Integration and Long-run Fiscal Sustainability" to be held on December 3 at 17:00 (Kyiv time). The seminar will be held in English online via Zoom. To get a link please register below.

About the speaker. Sergii Kiiashko is an Assistant professor of Kyiv School of Economics and Chief Expert at Research Department at National Bank of Ukraine. Sergii obtained his Ph.D. degree in Economics from the Princeton University (USA). His research interests include Macroeconomics, Monetary economics, Public economics and fiscal policy, Structural modeling. 

Abstract. 

This paper studies the long-run impact of international labor mobility on the union of countries conducting independent fiscal policies. We build a multicountry model populated by overlapping generations of agents where benevolent governments conduct optimal, time-consistent fiscal policy. To give rise to the notion of fiscal sustainability, an opportunity to renegotiate sovereign debt contracts is introduced. To generate cross-border labor mobility, we develop a novel matching process which aggregates microfounded migration decisions of workers. The model calibrated to match the empirical features related to the intra-EU labor flows is used to analyze the union-wide effects of migrations. We find that labor mobility fosters fiscal prudence, which is reflected by lower public debt levels and less generous social security systems. 

This seminar is enabled by the financial support from Sweden.