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The Effect of Immigration on Local Public Finances

Author

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  • Jeff Chan

    (Wilfrid Laurier University)

Abstract

I investigate the relationship between immigration and local public finances, exploiting variation in immigration inflows across local labour markets and data on local government revenues and expenditures. I find that increases in immigration did not result in any change to local government revenues. This is not explained by offsetting decreases in revenues from local sourcs and increases from state-level intergovernmental transfers. Finally, I demonstrate that the lack of impact on revenues similarly implies that immigration does not have an effect on local public expenditures. The findings suggest that immigration does not act as a drain on local public finances.

Suggested Citation

  • Jeff Chan, 2019. "The Effect of Immigration on Local Public Finances," Economics Bulletin, AccessEcon, vol. 39(4), pages 2423-2428.
    • Handle: RePEc:ebl:ecbull:eb-19-00570
    as

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    References listed on IDEAS

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    1. Leo Feler & Mine Z. Senses, 2017. "Trade Shocks and the Provision of Local Public Goods," American Economic Journal: Economic Policy, American Economic Association, vol. 9(4), pages 101-143, November.
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    6. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    7. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    8. Brian Bell & Francesco Fasani & Stephen Machin, 2013. "Crime and Immigration: Evidence from Large Immigrant Waves," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1278-1290, October.
    9. George J. Borjas, 2021. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 9, pages 235-274, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Poniatowicz Marzanna & Piekutowska Agnieszka, 2019. "The Fiscal Effects of Economic Immigration on Subnational Government Finance in Poland," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 15(1), pages 45-58, March.

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    More about this item

    Keywords

    immigration; local public finances;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • H4 - Public Economics - - Publicly Provided Goods

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