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Does migration affect tax revenue in Europe?

Author

Listed:
  • Liliana Harding

    (University of East Anglia)

  • Mihai Mutascu

    (West University of Timisoara)

Abstract

This paper analyses the effects of migration on per capita collected tax revenues. The panel data used includes 25 European Union (EU) countries and covers the period 1996-2010. The research contributes to the debate linking migration and tax, and finds evidence that net migration is a significant factor explaining tax revenues. In the case of EU countries, net migration accelerates to some extent the rise in collected tax, and strongly impacts on the level of tax revenues available per capita.

Suggested Citation

  • Liliana Harding & Mihai Mutascu, 2016. "Does migration affect tax revenue in Europe?," University of East Anglia School of Economics Working Paper Series 2016-08, School of Economics, University of East Anglia, Norwich, UK..
  • Handle: RePEc:uea:ueaeco:2016_08
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    More about this item

    Keywords

    migration; tax payment; government revenue; European Union;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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