Fiscal Costs and Benefits of High Skilled Immigration to a Generous Welfare State
We consider the fiscal impact of work related high skilled immigration to a generous welfare state. In a simple theoretical model, we show that, even though a generous welfare state tends to attract immigrants with a high demand for public services, the high skilled immigrants may still be selected among individuals with a relatively low demand of public services. In the empirical analysis we apply a unique Danish data set containing very detailed information on all residents in Denmark, including information on migration. Denmark is interesting, because it has one of the most generous welfare states in the world, and, in spite of that, it turns out that high skilled immigration gives rise to a big net fiscal surplus. Further, high skilled immigrants seem to be selected among those having a relatively low demand of public services.
|Date of creation:||Feb 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +44 (0)20 7679 5888
Fax: +44 (0)20 7916 2775
Web page: http://www.cream-migration.org/
More information through EDIRC
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.:
- Christian Dustmann & Tommaso Frattini & Caroline Halls, 2010.
"Assessing the Fiscal Costs and Benefits of A8 Migration to the UK,"
Institute for Fiscal Studies, vol. 31(1), pages 1-41, 03.
- Christian Dustmann & Tommaso Frattini & Caroline Halls, 2009. "Assessing the Fiscal Costs and Benefits of A8 Migration to the UK," CReAM Discussion Paper Series 0918, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- 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.
- David Card, 1996. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Working Papers 747, Princeton University, Department of Economics, Industrial Relations Section..
- David Card, 1997. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," NBER Working Papers 5927, National Bureau of Economic Research, Inc.
- Borjas, George J, 1987.
"Self-Selection and the Earnings of Immigrants,"
American Economic Review,
American Economic Association, vol. 77(4), pages 531-53, September.
- Kjetil Storesletten, .
"Sustaining Fiscal Policy Through Immigration,"
_005, Stockholm University, Institute for International Economic Studies.
- Borjas, George J, 1999.
"Immigration and Welfare Magnets,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(4), pages 607-37, October.
- McDonald, James Ted & Kennedy, Steven, 2004. "Insights into the 'healthy immigrant effect': health status and health service use of immigrants to Canada," Social Science & Medicine, Elsevier, vol. 59(8), pages 1613-1627, October.
- Robert Rowthorn, 2008. "The fiscal impact of immigration on the advanced economies," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 561-581, Autumn.
- Christian Dustmann & Itzhak Fadlon & Yoram Weiss, 2010.
"Return Migration, Human Capital Accumulation and the Brain Drain,"
CReAM Discussion Paper Series
1013, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Dustmann, Christian & Fadlon, Itzhak & Weiss, Yoram, 2011. "Return migration, human capital accumulation and the brain drain," Journal of Development Economics, Elsevier, vol. 95(1), pages 58-67, May.
- Malchow-Møller, Nikolaj & Munch, Jakob R. & Skaksen, Jan Rose, 2009. "Do Immigrants Take the Jobs of Native Workers?," IZA Discussion Papers 4111, Institute for the Study of Labor (IZA).
- George J. Borjas & Richard B. Friedman & Lawrence F. Katz, 1997. "How Much Do Immigration and Trade Affect Labor Market Outcomes?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 1-90.
- Borjas, George J & Bratsberg, Bernt, 1996.
"Who Leaves? The Outmigration of the Foreign-Born,"
The Review of Economics and Statistics,
MIT Press, vol. 78(1), pages 165-76, February.
- Steven Kennedy & James Ted McDonald & Nicholas Biddle, 2006. "The Healthy Immigrant Effect and Immigrant Selection: Evidence from Four Countries," Social and Economic Dimensions of an Aging Population Research Papers 164, McMaster University.
When requesting a correction, please mention this item's handle: RePEc:nor:wpaper:2013006. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Norface Migration Administrator)or (Thomas Cornelissen)
If references are entirely missing, you can add them using this form.