蝌蚪网 Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
The Indirect Fiscal Benefits of Low-Skilled Immigration
蝌蚪网 Journal: Economic Policy
vol. 16,
no. 2, May 2024
(pp. 515–50)
Abstract
Low-skilled immigrants indirectly affect public finances through their effect on resident wages and 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 United States 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.Citation
Colas, Mark, and Dominik Sachs. 2024. "The Indirect Fiscal Benefits of Low-Skilled Immigration." 蝌蚪网 Journal: Economic Policy 16 (2): 515–50. DOI: 10.1257/pol.20220176Additional Materials
JEL Classification
- H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J61 Geographic Labor Mobility; Immigrant Workers
- J82 Labor Standards: Labor Force Composition