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The fiscal impact of immigration in France: a generational accounting approach

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  • Xavier Chojnicki

Abstract

The objective of this study is to use both static and dynamic frameworks to compare the benefits that immigrants draw from the public system with their contributions through the taxes that they pay. The main conclusion of this article is that the impact of immigration on welfare systems is weak. Thus, if we compare, on a given date, immigrants’ global contribution to the public administration budget with the volume of transfers they receive, immigrants appear to be relatively favored by the redistribution system. At the same time, even if immigrants seem to pay less taxes and receive more transfers than natives, the difference in distribution between the two populations, with a higher concentration of immigrants in the active age groups and a sparser concentration among the net beneficiaries of the social transfer system, leads to a slightly positive long-term impact of immigration on public finances. However, the impact of immigration remains very slight compared to the global effort that would have to be undertaken to reduce budgetary imbalances.

Suggested Citation

  • Xavier Chojnicki, 2012. "The fiscal impact of immigration in France: a generational accounting approach," Working Papers 2012-11, CEPII research center.
    • Handle: RePEc:cii:cepidt:2012-11
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    1. Karin Mayr, 2005. "The Fiscal Impact of Immigrants in Austria – A Generational Accounting Analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(2), pages 181-216, June.
    2. Timothy Miller & Ronald Lee, 2000. "Immigration, Social Security, and Broader Fiscal Impacts," American Economic Review, American Economic Association, vol. 90(2), pages 350-354, May.
    3. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1991. "Generational Accounts: A Meaningful Alternative to Deficit Accounting," NBER Chapters, in: Tax Policy and the Economy, Volume 5, pages 55-110, National Bureau of Economic Research, Inc.
    4. Xavier Chojnicki, 2006. "Vieillissement démographique et immigration : un modèle de comptabilité générationnelle appliqué à la France," Économie et Prévision, Programme National Persée, vol. 174(3), pages 39-57.
    5. M. Dolores Collado & IÒigo Iturbe-Ormaetxe & Guadalupe Valera, 2004. "Quantifying the Impact of Immigration on the Spanish Welfare State," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 11(3), pages 335-353, May.
    6. Karin Mayr, 2004. "The fiscal impact of immigrants in Austria--a generational accounting analysis," Economics working papers 2004-09, Department of Economics, Johannes Kepler University Linz, Austria.
    7. Olivier Monso, 2008. "L'immigration a-t-elle un effet sur les finances publiques ?," Revue Française d'Économie, Programme National Persée, vol. 23(2), pages 3-56.
    8. Holger Bonin & Bernd Raffelhüschen & Jan Walliser, 2000. "Can Immigration Alleviate the Demographic Burden?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(1), pages 1-21, September.
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    Keywords

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    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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