Arbeitspapier

Migration effects on municipalities' expenditures

In this paper we examine how Finnish municipalities' expenditures depend on the demographic structure of the population. More precisely, we scrutinize the role of foreign citizens: how does the share of foreign citizens out of the total population manifest itself in total expenditures and some key expenditure categories. The study makes use of Finnish panel data from 249 municipalities for the period 2000-2014. Empirical analyses show that foreign population tends to increase per capita expenditures up to the point where the respective semi-elasticity is about one. The result seems robust in terms of different control variables, subsamples of the data and different estimation techniques. Also, it is found that similarly, the unemployment rate of foreign citizens tends to increase municipalities' expenditures.

Language
Englisch

Bibliographic citation
Series: Discussion paper ; No. 113

Classification
Wirtschaft
State and Local Budget and Expenditures
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Subject
government expenditures
local public finance
migration

Event
Geistige Schöpfung
(who)
Viren, Matti
Event
Veröffentlichung
(who)
Aboa Centre for Economics (ACE)
(where)
Turku
(when)
2016

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Viren, Matti
  • Aboa Centre for Economics (ACE)

Time of origin

  • 2016

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