2019

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.


Reference:
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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Interdisciplinary European Studies

The European Union in a Changing World Order

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This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

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