TY - JOUR
T1 - Fiscal implications of immigration - A net present value calculation
AU - Storesletten, Kjetil
PY - 2003
Y1 - 2003
N2 - Focusing on the net fiscal effects, the gain from admitting immigrants is computed for a welfare state with large expenditures and a large tax burden (Sweden). Prices and behavior are held constant, which allows a detailed analysis of the effects of immigration. The present value of future tax revenues minus outlays is potentially large; USD 23,500 per young working-age immigrant, but an average new immigrant represents a net government loss of USD 20,500. The dominant factors are employment rates and age. For young working-age immigrants, the "break-even" participation rate for which the gain would be zero is 60%, well below the empirical rate for this group.
AB - Focusing on the net fiscal effects, the gain from admitting immigrants is computed for a welfare state with large expenditures and a large tax burden (Sweden). Prices and behavior are held constant, which allows a detailed analysis of the effects of immigration. The present value of future tax revenues minus outlays is potentially large; USD 23,500 per young working-age immigrant, but an average new immigrant represents a net government loss of USD 20,500. The dominant factors are employment rates and age. For young working-age immigrants, the "break-even" participation rate for which the gain would be zero is 60%, well below the empirical rate for this group.
KW - Fiscal policy
KW - Immigration
KW - Taxation
UR - http://www.scopus.com/inward/record.url?scp=0141906236&partnerID=8YFLogxK
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U2 - 10.1111/1467-9442.t01-2-00009
DO - 10.1111/1467-9442.t01-2-00009
M3 - Article
AN - SCOPUS:0141906236
SN - 0347-0520
VL - 105
SP - 487
EP - 506
JO - Scandinavian Journal of Economics
JF - Scandinavian Journal of Economics
IS - 3
ER -