The Indirect Fiscal Benefits of Low-Skilled Immigration

Colas, Mark; Sachs, Dominik

doi:10.2139/ssrn.3707944

Cited by 5 publications

(7 citation statements)

References 49 publications

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“…Mayda et al 2020;Bahar et al 2020). It complements recent work by Colas and Sachs (2020) on the indirect scal e ects of lower-skill immigration via shifts in the wage structure.…”

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confidence: 57%

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The Fiscal Effect of Immigration: Reducing Bias in Influential Estimates

Clemens

2021

SSRN Journal

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“…Mayda et al 2020;Bahar et al 2020). It complements recent work by Colas and Sachs (2020) on the indirect scal e ects of lower-skill immigration via shifts in the wage structure.…”

mentioning

confidence: 57%

“…A fuller analysis would consider the e ects of immigration on di erent types of labor that are imperfect substitutes. Colas and Sachs (2020) point out that any such distributional e ects would tend to produce a positive shift in the e ect of low-education immigration on labor tax revenue.…”

Section: Accounting For Relative Price Effects On Heterogeneous Labormentioning

confidence: 97%

The Fiscal Effect of Immigration: Reducing Bias in Influential Estimates

Clemens

2021

SSRN Journal

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“…In focusing exclusively on demographic changes among populations, we overlook the indirect (or general equilibrium) effects of immigration, which nevertheless affect public finances over time and through tax changes. For example, as discussed in Colas and Sachs (2020), immigration-induced population growth can indirectly affect public finances through an effect on native wages and labour supply in the case of low-skilled immigrants. 37 Although the indirect effects of immigration are quantified as minor relative to overall economic activity and are overlooked due to the difficulty of operationalising a general equilibrium approach, evidence suggests that they could nonetheless be substantial for some market sectors and geographic regions.…”

Section: Conclusion and Discussionmentioning

confidence: 99%

Projecting the fiscal impact of immigration in the European Union

et al. 2022

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The increasing flow of immigrants into Europe over the last decade has generated a range of considerations in the policy agenda of many receiving countries. One of the main considerations for policymakers and public opinion alike is whether immigrants contribute their 'fair' share to their host country's tax and welfare system. In this paper, we assess the net fiscal impact of intra-EU and extra-EU migration in 27 European Union (EU) Member States. We find that migrants in the EU, on average, contribute more than natives to welfare states. However, when we take an age-specific lifecycle perspective, we find that natives generally show a higher net fiscal contribution than both groups of migrants. Among migrants, extra-EU migrants contribute less than intra-EU migrants. We then use a demographic microsimulation model to project the potential net fiscal impact of migration in the EU into the future. We show that despite the fact that intra-EU migration contributes to reduce the strong negative impact of population ageing, its contribution is not sufficient to offset the negative fiscal consequences.

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“…An intuitive example of this eect is when a less-educated asylum seeker working in a daycare center allows a more-educated female U.S. worker to participate in the labor force (Cortes and Tessada 2011) and thus pay additional taxes-income taxes on their labor, excise taxes on their consumption, and so on. Colas and Sachs (2020) estimate that the lifetime present value of these additional taxes created by the marginal U.S. immigrant with 18 Bassier et al (2020, 51, Table 6) nd that the ratio of wages to marginal revenue product is 0.74 in the bottom quartile of earnings and 0.82 in the top quartile, given that rm-labor supply elasticity 4 = 2 ⇥ separation elasticity, and wage MPL = 4 1+4 . Arin Dube pointed out the relevance of this markdown estimate.…”

Section: Fiscal Effects Of Asylum Seekersmentioning

confidence: 99%

The economic and fiscal effects on the United States from reduced numbers of refugees and asylum seekers

Clemens

2022

Oxford Review of Economic Policy

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International migrants who seek protection also participate in the economy. Thus the policy of the United States to drastically reduce refugee and asylum-seeker arrivals from 2017 to 2020 might have substantial and ongoing economic consequences. This paper places conservative bounds on those effects by critically reviewing the research literature. It goes beyond prior estimates by including ripple effects beyond the wages earned or taxes paid directly by migrants. The sharp reduction in US refugee admissions starting in 2017 costs the overall US economy today over $9.1 billion per year ($30,962 per missing refugee per year, on average) and costs public coffers at all levels of government over $2.0 billion per year ($6,844 per missing refugee per year, on average) net of public expenses. Large reductions in the presence of asylum seekers during the same period likewise carry ongoing costs in the billions of dollars per year. These estimates imply that barriers to migrants seeking protection, beyond humanitarian policy concerns, carry substantial economic costs.

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The Indirect Fiscal Benefits of Low-Skilled Immigration

Cited by 5 publications

References 49 publications

The Fiscal Effect of Immigration: Reducing Bias in Influential Estimates

The Fiscal Effect of Immigration: Reducing Bias in Influential Estimates

Projecting the fiscal impact of immigration in the European Union

The economic and fiscal effects on the United States from reduced numbers of refugees and asylum seekers

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