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

Abstract

We contrast the net fiscal position (NFP) of immigrants versus natives using data from the European Survey on Living Conditions for 2007–2015. Using 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. These findings suggest that immigrants are not a public finance burden and do not increase public spending in the destination country. We also examine the relationship between migrants’ fiscal position and the fiscal perception of natives versus migrants as measured in the European Social Survey. 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 migration policies, fostering integration.