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Do immigrants pose a fiscal burden on the host country budget? : a case study for Michigan

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  • Bharati Basu

    ()
    (Central Michigan University)

  • Richard B Clemmer

    ()
    (Central MIchigan University)

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    Abstract

    Using i) the Public Use Micro Sample data from the 2000 US Census of Population and Housing, and ii) fiscal information from the state of Michigan Budget Office, we estimate the net (benefit minus cost) fiscal impact of immigrants in the state of Michigan. We have shown that both immigrant and native-born households are fiscal burden to the state although financial burden for native-born households is less that that for foreign-born households. When we classify immigrants by their country of origin, immigrants from some specific countries actually add a net amount to the state coffer.

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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 29 (2009)
    Issue (Month): 3 ()
    Pages: 2174-2201

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    Handle: RePEc:ebl:ecbull:eb-09-00123

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    Related research

    Keywords: Immigrants; Tax Revenues; and Government Expenditure;

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    1. George J. Borjas & Stephen J. Trejo, 1991. "Immigrant participation in the welfare system," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 44(2), pages 195-211, January.
    2. Storesletten, Kjetil, 1998. "Sustaining Fiscal Policy Through Immigration," Seminar Papers, Stockholm University, Institute for International Economic Studies 664, Stockholm University, Institute for International Economic Studies.
    3. Ather H. Akbari, 1989. "The Benefits of Immigrants to Canada: Evidence on Tax and Public Services," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 15(4), pages 424-435, December.
    4. Philip Oreopoulos & Alan J. Auerbach, 1999. "Analyzing the Fiscal Impact of U.S. Immigration," American Economic Review, American Economic Association, American Economic Association, vol. 89(2), pages 176-180, May.
    5. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 32(4), pages 1667-1717, December.
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