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 .
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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.
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Postal: Institute for International Economic Studies, Stockholm University, S-106 91 Stockholm, Sweden
Web page: http://www.iies.su.se/
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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, Indigenous Peoples, 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)
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