New Findings on the Fiscal Impact of Immigration in the United States

Pia Orrenius

No 1704, Working Papers from Federal Reserve Bank of Dallas

Abstract: The National Academies of Sciences, Engineering, and Medicine (2016) report on the economic and fiscal effects of immigration included the first set of comprehensive fiscal impacts published in twenty years. The estimates highlight the pivotal role of the public goods assumption. If immigrants are assigned the average cost of public goods, such as national defense and interest on the debt, then immigration?s fiscal impact is negative in both the short and long run. If, instead, immigrants are assigned the marginal cost of public goods, then the long-run fiscal impact is positive and the short-run effect is negative but very small (less negative than that of natives). Highly educated immigrants confer large positive fiscal impacts, contributing far more in taxes than they consume in public benefits. To the extent that immigrants impose net costs, these are concentrated at the state and local level and are largely due to the costs of public schooling.

Keywords: Immigration; fiscal impact; public goods (search for similar items in EconPapers)
JEL-codes: H50 H72 J15 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2017-04-01
New Economics Papers: this item is included in nep-mig and nep-ure
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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DOI: 10.24149/wp1704

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