Arbeitspapier
The fiscal consequences of immigration: A study of local governments' expenditures
In this paper we examine how Finnish municipalities' expenditures depend on the share of citizens with foreign background out of the total population. Empirical analyses make use of Finnish panel data from 295 municipalities and 202 migrant nationalities for the period 1987- 2018. It turns out that the share of 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 estimation techniques. Sizeable differences between different nationalities could, however, be detected. Thus, we cannot assume that the use of public services is neutral in terms of demographic changes and that should be considered when making assessments on overall fiscal effects of migration.
- Language
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Englisch
- Bibliographic citation
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Series: Discussion paper ; No. 151
- Classification
-
Wirtschaft
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Fiscal Policies and Behavior of Economic Agents: Household
Publicly Provided Private Goods
State and Local Taxation, Subsidies, and Revenue
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Geographic Labor Mobility; Immigrant Workers
- Subject
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government expenditures
migration
local government
- Event
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Geistige Schöpfung
- (who)
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Virén, Matti E. E.
- Event
-
Veröffentlichung
- (who)
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Aboa Centre for Economics (ACE)
- (where)
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Turku
- (when)
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2022
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Virén, Matti E. E.
- Aboa Centre for Economics (ACE)
Time of origin
- 2022
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