2019

Refugee Immigration and Public Sector Finances: Evidence from Sweden

Reprint No. 2019:46

Author(s): Lina Aldén and Mats HammarstedtYear: 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:
Aldén, Lina and Mats Hammarstedt (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 and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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