The Public Finance Position of Immigrants in Europe: A Quantile Regression Approach

Joxhe, Majlinda; Scaramozzino, Pasquale; Zanaj, Skerdilajda

Abstract

This paper contrasts the net fiscal position (NFP) of immigrants versus natives using data from the European Survey on Living Conditions for 2007-2015. By employing a quantile regression approach, we find that European and non-European migrants have a different fiscal position from natives only on the extreme tails of the NFP distribution. Non-EU migrants contribute even more than natives in the top quantile of the NFP, but they are more fiscally dependent than native citizens in the lowest quantile. Overall, these findings suggest that immigrants are not a public finance burden and do not increase public spending in the destination country. In addition, we also examine the relationship between the calculated migrants’ fiscal position and the fiscal perception of European citizens versus migrants as measured in European Social Survey data. The negative perception may be entirely driven by the fiscal position of migrants in the lowest quantile. We believe that by examining the effects of migrants on public spending, we can gain valuable insights into the economic implications of immigration and develop evidence-based policies that foster integration and maximize the benefits of immigration while addressing potential challenges.

Citation

Joxhe, M., Scaramozzino, P., & Zanaj, S. (2024). The Public Finance Position of Immigrants in Europe: A Quantile Regression Approach. Public Finance Review, 52(2), 182-221. https://doi.org/10.1177/10911421231197280

• Journal Article Type: Article
• Acceptance Date: Aug 7, 2023
• Online Publication Date: Nov 1, 2023
• Publication Date: Mar 1, 2024
• Deposit Date: Aug 10, 2023
• Publicly Available Date: Aug 10, 2023
• Journal: Public Finance Review
• Print ISSN: 1091-1421
• Electronic ISSN: 1552-7530
• Publisher: SAGE Publications
• Peer Reviewed: Peer Reviewed
• Volume: 52
• Issue: 2
• Pages: 182-221
• DOI: https://doi.org/10.1177/10911421231197280
• Keywords: fiscal position, immigration, quantile regression, European countries