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Refugee Immigration and Public-Sector Finances: Evidence from Sweden

Author

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  • Lina Aldén
  • Mats Hammarstedt

Abstract

We present an analysis of how refugee immigration affects public-sector finances during the refugees' first years of stay in Sweden. Two different measures are presented. First, public-sector revenues are related to public-sector costs under the assumption that public costs increase in proportion to refugee immigration. Second, public-sector revenues are related to public-sector costs when, in the short run, costs for public administration, infrastructure, and national defense are assumed to be fixed as refugee immigration increases. We find that refugee immigration implies a net cost for public-sector finances for several years and that this cost to a large extent is dependent on the refugees' labor market assimilation.

Suggested Citation

  • Lina Aldén & Mats Hammarstedt, 2019. "Refugee Immigration and Public-Sector Finances: Evidence from Sweden," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 75(3), pages 297-322.
    • Handle: RePEc:mhr:finarc:urn:doi:10.1628/fa-2019-0006
    DOI: 10.1628/fa-2019-0006
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    Citations

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    Cited by:

    1. Lina Aldén & Spencer Bastani & Mats Hammarstedt, 2021. "Ethnic Background and the Value of Self‐Employment Experience: Evidence from a Randomized Field Experiment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(6), pages 1287-1310, December.
    2. Manthei, Gerrit, 2020. "The long-term growth impact of refugee migration in Europe: A case study," FZG Discussion Papers 71, University of Freiburg, Research Center for Generational Contracts (FZG).

    More about this item

    Keywords

    immigration; refugees; employment; public sector;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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