Fiscal Position of Immigrants in Europe: A Quantile Regression Approach

A new GLO Discussion Paper finds that European and non-European migrants have a different fiscal position from natives only on the extreme tails of the net fiscal position distribution.

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GLO Discussion Paper No. 758, 2021

Fiscal Position of Immigrants in Europe: A Quantile Regression ApproachDownload PDF
by
Joxhe, Majlinda & Scaramozzino, Pasquale & Zanaj, Skerdilajda

GLO Fellow Majlinda Joxhe

Author Abstract: This paper compares the net fiscal position (NFP) of immigrants versus natives using data from the European Survey on Living Conditions (EU-SILC) for the period 2007-2015. By employing 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 more than natives in the top quantile of the NFP, whereas they are more fiscally depend in the bottom quantile. We also examine the relationship between our calculated migrants’ fiscal position and the fiscal perception of European citizens versus migrants as measured in European Social Survey (ESS) data. The negative perception in some European countries may be entirely driven by the fiscal position of migrants in the lowest quantile. Our results highlight the critical need to better understand the fiscal contribution of migrants in the destination countries for a fair and constructive migration policy.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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