Immigration and the Canadian Welfare State 2011
AbstractThis publication provides an estimate of the fiscal burden created by recent immigration into Canada and proposes reforms to existing immigrant selection policies to eliminate the burden. It uses a 2006 Census database to estimate the average incomes and taxes paid on these by immigrants who arrived in Canada over the period from 1987 to 2004. It also estimates other taxes they paid and the value of government services they absorbed. The study concludes that in the fiscal year 2005/06 the immigrants on average received an excess of $6,051 in benefits over taxes paid. Depending on assumptions about the number of recent immigrants in Canada, the fiscal burden in that year is estimated to be between $23.6 billion and $16.3 billion. These estimates are not changed by the consideration of other alleged benefits brought by immigrants. To curtail this growing fiscal burden from immigration, the study proposes that temporary work visas be granted to applicants who have a valid offer for employment from employers, in occupations and at pay levels specified by the federal government and determined in cooperation with private-sector employers. Immediate dependents may accompany successful applicants. The temporary visas are renewable and lead to landed immigrant status if certain specified employment criteria are met.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 31109.
Date of creation: 17 May 2011
Date of revision:
Canadian immigration; fiscal impacts of immigration to Canada; Immigration policy;
Find related papers by JEL classification:
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- H40 - Public Economics - - Publicly Provided Goods - - - General
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-04 (All new papers)
- NEP-LAB-2011-06-04 (Labour Economics)
- NEP-MIG-2011-06-04 (Economics of Human Migration)
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.:
- Pia Orrenius & Daniel Streitfeld, 2006. "TN Visas : a stepping stone toward a NAFTA labor market," Southwest Economy, Federal Reserve Bank of Dallas, Federal Reserve Bank of Dallas, issue Nov, pages 1-4.
- Picot, Garnett & Sweetman, Arthur, 2005. "The Deteriorating Economic Welfare of Immigrants and Possible Causes: Update 2005," Analytical Studies Branch Research Paper Series 2005262e, Statistics Canada, Analytical Studies Branch.
- Grady, Patrick, 2010. "Some Observations on Net Fiscal Transfers to Recent Immigrants Resulting From Income Taxes and Government Transfer Programs," MPRA Paper 24402, University Library of Munich, Germany.
- Morissette, Rene & Frenette, Marc, 2003. "Will They Ever Converge? Earnings of Immigrants and Canadian-born Workers over the Last Two Decades," Analytical Studies Branch Research Paper Series 2003215e, Statistics Canada, Analytical Studies Branch.
- Abbott, Michael & Beach, Charles M., 2009. "Immigrant Earnings Distributions and Earnings Mobility in Canada: Evidence for the 1982 Landing Cohort from IMDB Micro Data," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2009-22, Vancouver School of Economics, revised 13 Mar 2009.
- Picot, Garnett, 2008. "Immigrant Economic and Social Outcomes in Canada: Research and Data Development at Statistics Canada," Analytical Studies Branch Research Paper Series 2008319e, Statistics Canada, Analytical Studies Branch.
- Grady, Patrick, 2012. "The parent and grandparent immigration program in Canada: costs and proposed changes," MPRA Paper 37289, University Library of Munich, Germany, revised 08 Mar 2012.
- Grubel, Herbert & Grady, Patrick, 2012. "Fiscal transfers to immigrants in Canada: responding to critics and a revised estimate," MPRA Paper 37406, University Library of Munich, Germany, revised 06 Mar 2012.
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