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Fiscal effects of emigration by selected occupational groups

Author

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  • Christian Holzner
  • Sonja Munz
  • Silke Übelmesser

Abstract

The emigration of citizens educated and employed in Germany has both population-statistical and labour market relevance along with fiscal policy implications. Using two exemplary emigrants - a skilled worker and a medical doctor - this study calculates the corresponding fiscal balances. The public costs connected with the publicly financed education are compared with the fiscal benefits that, in case of migration, do not accrue to the country that financed the education but to the country to which the graduates emigrate. Had they remained in Germany, they would have made a positive contribution over their working lives to the community. The results of the study show that the migration of skilled labour causes considerable burdens to the public budgets and the social insurance funds. As a result, policy-makers must create proper incentives for skilled labour to remain in Germany by a reform of the taxation and social insurance systems.

Suggested Citation

  • Christian Holzner & Sonja Munz & Silke Übelmesser, 2009. "Fiscal effects of emigration by selected occupational groups," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 62(17), pages 28-33, September.
    • Handle: RePEc:ces:ifosdt:v:62:y:2009:i:17:p:28-33
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    References listed on IDEAS

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    1. Hans-Werner Sinn & Gebhard Flaig & Martin Werding & Sonja Munz & Nicola Düll & Herbert Hofmann, 2001. "EU enlargement and labour-force migration: Proposals for a gradual convergence of labour markets," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 2.
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    3. Hans-Werner Sinn, 2000. "Why a Funded Pension System is Useful and Why It is Not Useful," NBER Working Papers 7592, National Bureau of Economic Research, Inc.
    4. Stefan Bach, 2005. "Mehrwertsteuerbelastung der privaten Haushalte: Dokumentation des Mehrwertsteuer-Moduls des Konsumsteuer-Mikrosimulationsmodells des DIW Berlin auf Grundlage der Einkommens- und Verbrauchsstichprobe," Data Documentation 10, DIW Berlin, German Institute for Economic Research.
    5. Hans-Werner Sinn, 2000. "Why a Funded Pension System is Needed and Why It is Not Needed," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(4), pages 389-410, August.
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    Cited by:

    1. Hendel, Ulrich, 2012. "The Influence of Altruistic Preferences on the Race to the Bottom of Welfare States," Discussion Papers in Economics 13999, University of Munich, Department of Economics.

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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