Abstract
Low-skilled immigrants indirectly affect public finances through their effect on resident wages & labor supply. We operationalize this indirect fiscal effect in a model of immigration and the labor market. We derive closed-form expressions for this effect in terms of estimable statistics. An empirical quantification for the U.S. reveals an indirect fiscal benefit for one average low-skilled immigrant of roughly $750 annually. The indirect fiscal benefit may outweigh the negative direct fiscal effect that has previously been documented. This challenges the perception of low-skilled immigration as a fiscal burden.
| Dokumententyp: | Paper |
|---|---|
| Keywords: | immigration; fiscal impact; general equilibrium |
| Fakultät: | Volkswirtschaft > Collaborative Research Center Transregio "Rationality and Competition" |
| Themengebiete: | 300 Sozialwissenschaften > 330 Wirtschaft |
| JEL Classification: | H20, J31, J61 |
| URN: | urn:nbn:de:bvb:19-epub-93967-5 |
| Sprache: | Englisch |
| Dokumenten ID: | 93967 |
| Datum der Veröffentlichung auf Open Access LMU: | 04. Jan. 2023 08:42 |
| Letzte Änderungen: | 04. Jan. 2023 08:43 |
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