Refugee Immigration and Public-Sector Finances: Evidence from Sweden

Lina Aldén and Mats Hammarstedt ()

FinanzArchiv: Public Finance Analysis, 2019, vol. 75, issue 3, 297-322

Abstract: 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.

Keywords: immigration; refugees; employment; public sector (search for similar items in EconPapers)
JEL-codes: I38 J15 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:mhr:finarc:urn:doi:10.1628/fa-2019-0006

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DOI: 10.1628/fa-2019-0006

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