Fiscal Implications of Immigration - A Net Present Value Calculation -
AbstractFocusing on the net fiscal effects, the gain from admitting immigrants is computed for a welfare state with large expenditures and a large tax burden (Sweden). Prices and behavior are held constant, which allows a detailed analysis of the effects of immigration. The present value of future tax revenues minus outlays is potentially large; USD 23,500 per young working-age immigrant, but an "average" new immigrant represents a net government loss of USD 20,500. The dominant factors are employment rates and age. For young working-age immigrants, the "break-even" participation rate for which the gain would be zero is 60%, well below the empirical rate for this group. Copyright The editors of the "Scandinavian Journal of Economics", 2003 .
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Stockholm University, Institute for International Economic Studies in its series Seminar Papers with number 701.
Length: 35 pages
Date of creation: 05 Dec 2001
Date of revision:
Publication status: Forthcoming in Scandinavian Journal of Economics.
Contact details of provider:
Postal: Institute for International Economic Studies, Stockholm University, S-106 91 Stockholm, Sweden
Web page: http://www.iies.su.se/
More information through EDIRC
Other versions of this item:
- Kjetil Storesletten, 2003. "Fiscal Implications of Immigration-A Net Present Value Calculation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(3), pages 487-506, 09.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-10 (All new papers)
- NEP-DGE-2002-02-15 (Dynamic General Equilibrium)
- NEP-PBE-2002-02-15 (Public Economics)
- NEP-PKE-2002-02-15 (Post Keynesian Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Persson, Torsten & Tabellini, Guido, 1999.
"The Size and Scope of Government: Comparative Politics With Rational Politicians,"
CEPR Discussion Papers
2051, C.E.P.R. Discussion Papers.
- Persson, Torsten & Tabellini, Guido, 1999. "The size and scope of government:: Comparative politics with rational politicians," European Economic Review, Elsevier, vol. 43(4-6), pages 699-735, April.
- Persson, Torsten & Tabellini, Guido, 1998. "The size and scope of government: Comparative politics with rational politicians," Seminar Papers 658, Stockholm University, Institute for International Economic Studies.
- Torsten Persson & Guido Tabellini, 1998. "The Size and Scope of Government: Comparative Politics with Rational Politicians," NBER Working Papers 6848, National Bureau of Economic Research, Inc.
- Persson, T. & Tabellini, G., 1998. "The Size and Scope of Government: Comparative Politics with Rational Politicians," Papers 658, Stockholm - International Economic Studies.
- Kjetil Storesletten, .
"Sustaining Fiscal Policy Through Immigration,"
_005, Stockholm University, Institute for International Economic Studies.
- Canova, Fabio & Ravn, Morten O., 1998.
"Crossing the Rio Grande: Migrations, Business Cycles and the Welfare State,"
CEPR Discussion Papers
2040, C.E.P.R. Discussion Papers.
- Morten O. Ravn & Fabio Canova, 1997. "Crossing the Rio Grande: Migrations, business cycles and the welfare state," Economics Working Papers 248, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 1997.
- Storesletten, Kjetil & Telmer, Chris I. & Yaron, Amir, 1999.
"The risk-sharing implications of alternative social security arrangements,"
Carnegie-Rochester Conference Series on Public Policy,
Elsevier, vol. 50(1), pages 213-259, June.
- Kjetil Storesletten & Chris Telmer & Amir Yaron, 1998. "The risk sharing implications of alternative social security arrangements," GSIA Working Papers 252, Carnegie Mellon University, Tepper School of Business.
- Ugur, Mehmet, 2007. "Migration without borders: the ethics, economics and governance of free movement," MPRA Paper 26007, University Library of Munich, Germany, revised Oct 2010.
- Hanson, Gordon H., 2009.
"The Governance of Migration Policy,"
19178, University Library of Munich, Germany.
- Gordon H. Hanson, 2009. "The Governance of Migration Policy," Human Development Research Papers (2009 to present) HDRP-2009-02, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.
- Ben-Gad, M., 2012. "On deficit bias and immigration," Working Papers 12/09, Department of Economics, City University London.
- Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2004. "Selection or Network Effects? Migration Flows into 27 OECD Countries, 1990-2000," IZA Discussion Papers 1104, Institute for the Study of Labor (IZA).
- Sheetal K. Chand & Martin Paldam, 2004. "The economics of immigration into a Nordic welfare state - and a comparison to an immigration state and a guest worker state," Economics Working Papers 2004-4, School of Economics and Management, University of Aarhus.
- Bernt Bratsberg & Oddbjorn Raaum & Knut Roed, 2008.
"When Minority Labor Migrants Meet the Welfare State,"
CReAM Discussion Paper Series
0817, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2010. "When Minority Labor Migrants Meet the Welfare State," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 633-676, 07.
- Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2007. "When Minority Labor Migrants Meet the Welfare State," IZA Discussion Papers 2872, Institute for the Study of Labor (IZA).
- Holzmann, Robert & Koettl, Johannes, 2011.
"Portability of Pension, Health, and Other Social Benefits: Facts, Concepts, Issues,"
IZA Discussion Papers
5715, Institute for the Study of Labor (IZA).
- Holzmann, Robert & Koettl, Johannes, 2011. "Portability of pension, health, and other social benefits : facts, concepts, issues," Social Protection Discussion Papers 62725, The World Bank.
- Robert Holzmann & Johannes Koettl, 2012. "Portability of Pension, Health, and other Social Benefits: Facts, Concepts, and Issues," CESifo Working Paper Series 4002, CESifo Group Munich.
- Robert Elliott & Joanne Kathryn Lindley, 2006. "Immigrant Wage Differentials, Ethnicity and Occupational Clustering," Working Papers 2006008, The University of Sheffield, Department of Economics, revised May 2006.
- Hendrik P. van Dalen & K�ne Henkens, 2004. "The Rationality behind Immigration Preferences," Tinbergen Institute Discussion Papers 04-002/1, Tinbergen Institute.
- Chand, Sheetal K. & Paldam, Martin, . "The economics of immigration into a welfare state," Economics Working Papers 2003-18, School of Economics and Management, University of Aarhus.
- Hendrik P. van Dalen & Kène Henkens, 2004. "The Rationality behind Immigration Preferences," Tinbergen Institute Discussion Papers 04-002/1, Tinbergen Institute.
- Gurgen Aslanyan, 2012. "Immigration Control & Long-Run Population Welfare," CERGE-EI Working Papers wp453, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Eberhard, Juan, 2012. "Immigration, Human Capital and the Welfare of Natives," MPRA Paper 37844, University Library of Munich, Germany.
- Ugur, Mehmet, 2008. "Economic implications of Turkish EU membership: the advantages of tying one’s hands," MPRA Paper 18547, University Library of Munich, Germany, revised 2009.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mounir Karadja) or (Niels-Jakob Harbo Hansen) or (Erik Prawitz).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.