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The fiscal impact of immigration in France: a generational accounting approach

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  • Xavier Chojnicki

Abstract

The objective of this study is to use both static and dynamic frameworks to compare the benefits that immigrants draw from the public system with their contributions through the taxes that they pay. The main conclusion of this article is that the impact of immigration on welfare systems is weak. Thus, if we compare, on a given date, immigrants’ global contribution to the public administration budget with the volume of transfers they receive, immigrants appear to be relatively favored by the redistribution system. At the same time, even if immigrants seem to pay less taxes and receive more transfers than natives, the difference in distribution between the two populations, with a higher concentration of immigrants in the active age groups and a sparser concentration among the net beneficiaries of the social transfer system, leads to a slightly positive long-term impact of immigration on public finances. However, the impact of immigration remains very slight compared to the global effort that would have to be undertaken to reduce budgetary imbalances.

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Bibliographic Info

Paper provided by CEPII research center in its series Working Papers with number 2012-11.

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Date of creation: Jun 2012
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Handle: RePEc:cii:cepidt:2012-11

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Keywords: Fiscal policy; International migration; National budget;

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  1. Karin Mayr, 2004. "The fiscal impact of immigrants in Austria--a generational accounting analysis," Economics working papers 2004-09, Department of Economics, Johannes Kepler University Linz, Austria.
  2. M. Dolores Collado & Iñigo Iturbe Ormaetxe & Guadalupe Valera, 2002. "Quantifying The Impact Of Immigration On The Spanish Welfare State," Working Papers. Serie AD 2002-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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Cited by:
  1. Xavier Chojnicki & Lionel Ragot, 2011. "Impacts of Immigration on Aging Welfare-State An Applied General Equilibrium Model for France," Working Papers 2011-13, CEPII research center.
  2. Ben-Gad, M., 2012. "On deficit bias and immigration," Working Papers 12/09, Department of Economics, City University London.
  3. Michael Ben-Gad, 2013. "Public Deficit Bias and Immigration," 2013 Meeting Papers 21, Society for Economic Dynamics.

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