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Migration and public finances in the EU

Author

Listed:
  • Carlo V. Fiorio

    (University of Milan)

  • Tommaso Frattini

    (University of Milan)

  • Andrea Riganti

    (University of Milan)

  • Michael Christl

    (European Commission, Joint Research Center)

Abstract

We provide novel and comprehensive evidence on the net fiscal contributions of natives and migrants to the governmental budgets of EU countries. We account for income taxes and cash benefits, along with indirect taxes and in-kind benefits, which are often missing in standard datasets. We find that on average, migrants were net contributors to public finances over the period of 2014–2018 in the EU and, moreover, that they contribute approximately €1.5 thousand more per capita each year than natives. We also show that this difference is partly due to the selection on characteristics that make migrants net fiscal contributors, such as demographic factors and employment probability.

Suggested Citation

  • Carlo V. Fiorio & Tommaso Frattini & Andrea Riganti & Michael Christl, 2024. "Migration and public finances in the EU," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(3), pages 635-684, June.
    • Handle: RePEc:kap:itaxpf:v:31:y:2024:i:3:d:10.1007_s10797-023-09787-9
    DOI: 10.1007/s10797-023-09787-9
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    Cited by:

    1. Michael Christl & Alain Bélanger & Alessandra Conte & Jacopo Mazza & Edlira Narazani, 2022. "Projecting the fiscal impact of immigration in the European Union," Fiscal Studies, John Wiley & Sons, vol. 43(4), pages 365-385, December.

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    More about this item

    Keywords

    Migration; EU; Individual taxation; Public benefits; Individual fiscal contribution;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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