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Migration and public finances in the EU

Author

Listed:
  • Carlo V. Fiorio

    (University of Milan, Irvapp-FBK and Dondena Centre)

  • Tommaso Frattini

    (University of Milan, Centro Studi Luca D'Agliano, CEPR, CReAM and IZA)

  • Andrea Riganti

    (University of Milan)

  • Michael Christl

    (European Commission - JRC)

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 EUR 1.5 thousand more per capita each year than natives. We also show that this difference is partly due to 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, 2022. "Migration and public finances in the EU," JRC Working Papers on Taxation & Structural Reforms 2022-05, Joint Research Centre.
    • Handle: RePEc:ipt:taxref:202205
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC129747
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    References listed on IDEAS

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    1. Christian Dustmann & Tommaso Frattini & Caroline Halls, 2010. "Assessing the Fiscal Costs and Benefits of A8 Migration to the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 31(1), pages 1-41, March.
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    3. 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.
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    12. Holly Sutherland & Francesco Figari, 2013. "EUROMOD: the European Union tax-benefit microsimulation model," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 4-26.
    13. Courtney Brell & Christian Dustmann & Ian Preston, 2020. "The Labor Market Integration of Refugee Migrants in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 94-121, Winter.
    14. Grzegorz Poniatowski & Mikhail Bonch-Osmolovskiy & Misha V. Belkindas, 2017. "Study and Reports on the VAT Gap in the EU-28 Member States: 2017 Final Report," CASE Reports 0492, CASE-Center for Social and Economic Research.
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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.
    2. Roberto Robutti, 2024. "Comparison of the Living Conditions of the Immigrant Population in Major European Countries," Societies, MDPI, vol. 14(9), pages 1-25, September.

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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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