Refugee Immigration and Public Sector Finances: Evidence from Sweden

Reprint No. 2019:46

Author(s): Mats Hammarstedt and Lina AldénYear: 2019 Title: FinanzArchiv/Public Finance Analysis Volume (No.): 75 (3) Pages: 297–322
Online article (restrictions may apply)

We present an analysis of how refugee immigration affects public-sector finances during the refugees' first years of stay in Sweden. Two different measures are presented. First, public-sector revenues are related to public-sector costs under the assumption that public costs increase in proportion to refugee immigration. Second, public-sector revenues are related to public-sector costs when, in the short run, costs for public administration, infrastructure, and national defense are assumed to be fixed as refugee immigration increases. We find that refugee immigration implies a net cost for public-sector finances for several years and that this cost to a large extent is dependent on the refugees' labor market assimilation.

Hammarstedt, Mats and Lina Aldén (2019), "Refugee Immigration and Public Sector Finances: Evidence from Sweden". FinanzArchiv/Public Finance Analysis 75(3), 297–322.

Mats Hammarstedt


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