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The fiscal impact of immigration in France: a generational accounting approach

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  • Xavier Chojnicki

Abstract

The objective of this study is to use both static and dynamic frameworks to compare the benefits that immigrants draw from the public system with their contributions through the taxes that they pay. The main conclusion of this article is that the impact of immigration on welfare systems is weak. Thus, if we compare, on a given date, immigrants’ global contribution to the public administration budget with the volume of transfers they receive, immigrants appear to be relatively favored by the redistribution system. At the same time, even if immigrants seem to pay less taxes and receive more transfers than natives, the difference in distribution between the two populations, with a higher concentration of immigrants in the active age groups and a sparser concentration among the net beneficiaries of the social transfer system, leads to a slightly positive long-term impact of immigration on public finances. However, the impact of immigration remains very slight compared to the global effort that would have to be undertaken to reduce budgetary imbalances.

Suggested Citation

  • Xavier Chojnicki, 2012. "The fiscal impact of immigration in France: a generational accounting approach," Working Papers 2012-11, CEPII research center.
    • Handle: RePEc:cii:cepidt:2012-11
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    1. Karin Mayr, 2005. "The Fiscal Impact of Immigrants in Austria – A Generational Accounting Analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(2), pages 181-216, June.
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    Cited by:

    1. Christian Dustmann & Ian P. Preston, 2019. "Free Movement, Open Borders, and the Global Gains from Labor Mobility," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 783-808, August.
    2. Anna Maria Mayda & Mine Z. Senses & Walter Steingress, 2023. "Immigration and Provision of Public Goods: Evidence at the Local Level in the U.S," Staff Working Papers 23-57, Bank of Canada.
    3. Xavier Chojnicki & Lionel Ragot, 2016. "Impacts of Immigration on an Ageing Welfare State: An Applied General Equilibrium Model for France," Fiscal Studies, Institute for Fiscal Studies, vol. 37, pages 258-284, June.
    4. 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.
    5. Aubry, Amandine & Burzyński, Michał & Docquier, Frédéric, 2016. "The welfare impact of global migration in OECD countries," Journal of International Economics, Elsevier, vol. 101(C), pages 1-21.
    6. Sacit Hadi Akdede & Eleftherios Giovanis, 2022. "The Impact of Migration Flows on Well-Being of Elderly Natives and Migrants: Evidence from the Survey of Health, Ageing and Retirement in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(2), pages 935-967, April.
    7. Michael Christl & Alain Bélanger & Alessandra Conte & Jacopo Mazza & Edlira Narazani, 2021. "The fiscal impact of immigration in the EU," JRC Working Papers on Taxation & Structural Reforms 2021-01, Joint Research Centre.
    8. Şerife Genç İleri, 2019. "Selective immigration policy and its impacts on Canada's native‐born population: A general equilibrium analysis," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(3), pages 954-992, August.
    9. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.
    10. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.
    11. Michael Ben-Gad, 2013. "Public Deficit Bias and Immigration," 2013 Meeting Papers 21, Society for Economic Dynamics.
    12. Michael Clemens, 2021. "The Fiscal Effect of Immigration: Reducing Bias in Influential Estimates," CESifo Working Paper Series 9464, CESifo.
    13. David Rodriguez-Justicia & Bernd Theilen, 2022. "Immigration and tax morale: the role of perceptions and prejudices," Empirical Economics, Springer, vol. 62(4), pages 1801-1832, April.
    14. Mirjam Bächli & Albrecht Glitz, 2024. "Immigration, Inequality and Income Taxes," Working Papers 1470, Barcelona School of Economics.
    15. Christian Dustmann & Giovanni Facchini & Cora Signorotto, 2015. "Population, Migration, Ageing and Health: A Survey," RF Berlin - CReAM Discussion Paper Series 1518, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    16. Ben-Gad, M., 2012. "On deficit bias and immigration," Working Papers 12/09, Department of Economics, City University London.
    17. Marco Baudino, 2017. "The issue of immigrants in Italy: a rational model of immigration management by Italian municipalities," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-17, December.
    18. Eleftherios Giovanis & Sacit Hadi Akdede, 2021. "Integration Policies in Spain and Sweden: Do They Matter for Migrants’ Economic Integration and Socio-Cultural Participation?," SAGE Open, , vol. 11(4), pages 21582440211, October.
    19. Eleftherios Giovanis, 2022. "The effects of international migration on well-being of natives and immigrants: evidence from Germany, Switzerland and the UK," SN Business & Economics, Springer, vol. 2(6), pages 1-33, June.
    20. Papageorgiou, Athanasios, 2018. "The Effect of Immigration on the Well-Being of Native Populations: Evidence from the United Kingdom," MPRA Paper 93045, University Library of Munich, Germany.
    21. Traettino, Salvador, 2023. "Migración forzada y finanzas públicas locales: evidencia de los municipios en Colombia," IDB Publications (Working Papers) 12926, Inter-American Development Bank.
    22. Sallam, Hend & Christl, Michael, 2024. "Do Migrants Pay Their Way? A Net Fiscal Analysis for Germany," GLO Discussion Paper Series 1530, Global Labor Organization (GLO).
    23. Ndeye Penda Sokhna & Lionel Ragot & Xavier Chojnicki, 2018. "The fiscal impact of 30 years of immigration in France: an accounting approach," EconomiX Working Papers 2018-36, University of Paris Nanterre, EconomiX.
    24. Salvador Traettino, 2022. "Migración forzada y finanzas públicas locales: Evidencia de los municipios en Colombia," Documentos CEDE 20335, Universidad de los Andes, Facultad de Economía, CEDE.
    25. Holger Hinte, 2014. "What determines the net fiscal effects of migration?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-78, June.

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    More about this item

    Keywords

    Fiscal policy; International migration; National budget;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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