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The fiscal aspect of the refugee crisis

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  • Joakim Ruist

    (University of Gothenburg)

Abstract

An important part of the resistance to higher refugee immigration in rich countries is due to the fear of the negative fiscal consequences. Yet this article shows that the fiscal consequences even of substantially increased refugee immigration are likely to be quite modest. According to the estimates, if the European Union received all refugees currently in Asia and Africa, the implied average annual fiscal cost over the lifetime of these refugees would be at most 0.6% of the union’s GDP. If other rich countries also shared the burden, the cost per country would be even lower.

Suggested Citation

  • Joakim Ruist, 2020. "The fiscal aspect of the refugee crisis," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(2), pages 478-492, April.
    • Handle: RePEc:kap:itaxpf:v:27:y:2020:i:2:d:10.1007_s10797-019-09585-2
    DOI: 10.1007/s10797-019-09585-2
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    References listed on IDEAS

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    1. Robert Rowthorn, 2008. "The fiscal impact of immigration on the advanced economies," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(3), pages 561-581, Autumn.
    2. David Card & Christian Dustmann & Ian Preston, 2012. "Immigration, Wages, And Compositional Amenities," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 78-119, February.
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    4. Fernández-Huertas Moraga, Jesús & Rapoport, Hillel, 2014. "Tradable immigration quotas," Journal of Public Economics, Elsevier, vol. 115(C), pages 94-108.
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    Cited by:

    1. Kärnä, Anders & Öhberg, Patrik, 2022. "Misrepresentation and Migration," Working Paper Series 1445, Research Institute of Industrial Economics, revised 11 May 2023.
    2. Hangartner, Dominik & Sarvimäki, Matti & Spirig, Judith, 2021. "Managing Refugee Protection Crises: Policy Lessons from Economics and Political Science," IZA Discussion Papers 14821, Institute of Labor Economics (IZA).
    3. Schirner, Sebastian, 2024. "Managing Migration: Female Mayors and the Intake of Asylum Seekers," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302435, Verein für Socialpolitik / German Economic Association.
    4. Michael Christl & Andrea Papini & Alberto Tumino, 2020. "Heterogeneity in effective VAT rates across native and migrant households in France, Germany and Spain," JRC Working Papers on Taxation & Structural Reforms 2020-09, Joint Research Centre.

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    More about this item

    Keywords

    Refugees; Immigration; Public finances;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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