Long-Run Fiscal Consequences of Refugee Migration - The Case of Austria

Johannes Holler and Philip Schuster

FinanzArchiv: Public Finance Analysis, 2020, vol. 76, issue 3, 266-310

Abstract: We use a rich numerical OLG model of Auerbach-Kotlikoff type to simulate the long-run effects of refugee migration starting in 2015 for a country with an aging society and a generous welfare system, namely Austria. The respective refugee cohorts are on average younger, less educated, and less productive than both natives and the average migrant. The net fiscal contribution results from two opposing effects: a positive demographic effect which is counteracted by worse labor market outcomes. We robustly find that public debt is higher throughout the simulation horizon 2015-2060 than in the baseline. We further analyze the group-specific welfare consequences resulting from differentiated wage effects.

Keywords: refugee migration; fiscal effects; overlapping-generations model; general equilibrium (search for similar items in EconPapers)
JEL-codes: F22 H68 J11 J15 J61 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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DOI: 10.1628/fa-2020-0009

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