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Do immigrants pose a fiscal burden on the host country budget? : a case study for Michigan

Author

Listed:
  • Bharati Basu

    (Central Michigan University)

  • Richard B Clemmer

    (Central MIchigan University)

Abstract

Using i) the Public Use Micro Sample data from the 2000 US Census of Population and Housing, and ii) fiscal information from the state of Michigan Budget Office, we estimate the net (benefit minus cost) fiscal impact of immigrants in the state of Michigan. We have shown that both immigrant and native-born households are fiscal burden to the state although financial burden for native-born households is less that that for foreign-born households. When we classify immigrants by their country of origin, immigrants from some specific countries actually add a net amount to the state coffer.

Suggested Citation

  • Bharati Basu & Richard B Clemmer, 2009. "Do immigrants pose a fiscal burden on the host country budget? : a case study for Michigan," Economics Bulletin, AccessEcon, vol. 29(3), pages 2174-2201.
    • Handle: RePEc:ebl:ecbull:eb-09-00123
    as

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    References listed on IDEAS

    as
    1. Kjetil Storesletten, 2000. "Sustaining Fiscal Policy through Immigration," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 300-323, April.
    2. Ather H. Akbari, 1989. "The Benefits of Immigrants to Canada: Evidence on Tax and Public Services," Canadian Public Policy, University of Toronto Press, vol. 15(4), pages 424-435, December.
    3. George J. Borjas & Stephen J. Trejo, 1991. "Immigrant Participation in the Welfare System," ILR Review, Cornell University, ILR School, vol. 44(2), pages 195-211, January.
    4. Philip Oreopoulos & Alan J. Auerbach, 1999. "Analyzing the Fiscal Impact of U.S. Immigration," American Economic Review, American Economic Association, vol. 89(2), pages 176-180, May.
    5. George J. Borjas & Lynette Hilton, 1996. "Immigration and the Welfare State: Immigrant Participation in Means-Tested Entitlement Programs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 575-604.
    6. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
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    More about this item

    Keywords

    Immigrants; Tax Revenues; and Government Expenditure;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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