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Handbook of the Economics of International Migration by Paul W. Miller, Barry Chiswick

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Chapter 16

The Fiscal Impact of Immigrants

Taxes and Benefits

Carlos Vargas-Silva    Senior Researcher, COMPAS, University of Oxford, 58 Banbury Road, Oxford OX2 6QS, UK

Abstract

This chapter provides a comprehensive look at the different ways of estimating the fiscal impact of immigration, discusses the evidence for different countries, and proposes ideas for future research. The evidence regarding the direction of the fiscal impact of immigration (i.e., fiscal burden or blessing) is mixed, but most analysis suggests that the impact is a small share of the fiscal budgets of most host countries. In most cases the estimated impact is less than 1% of GDP. The majority of the analysis has been static (i.e., analysis for a single fiscal year), ...

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