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Immigration and Provision of Public Goods: Evidence at the Local Level in the US

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  • Senses, Mine
  • Mayda, Anna Maria
  • Steingress, Walter

Abstract

This paper studies the causal impact of immigration on the provision of local public goods using U.S. county-level data from 1990 to 2010. We uncover substantial heterogeneity across immigrants with different skills, due mainly to their asymmetric impact on the per capita tax base and local revenues. Absent full insurance through intergovernmental transfers, the changes in per capita revenues are reflected in changes in local public service provision: Per capita public expenditures decrease with the arrival of low skilled immigrants, and increase with high-skilled immigrants. While the two types of immigrants offset each other on average, spatial differences in the share of low- and high-skilled immigrants lead to unequal ï¬ scal effects across U.S. counties. We ï¬ nd the estimated impact to differ across various public services, and for second-generation immigrants.

Suggested Citation

  • Senses, Mine & Mayda, Anna Maria & Steingress, Walter, 2023. "Immigration and Provision of Public Goods: Evidence at the Local Level in the US," CEPR Discussion Papers 18054, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:18054
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    Keywords

    Immigration;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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