The fiscal consequences of immigration: a study of local governments’ expenditures

Matti Viren ()
Additional contact information
Matti Viren: University of Turku

Review of Regional Research: Jahrbuch für Regionalwissenschaft, 2022, vol. 42, issue 1, No 4, 75-94

Abstract: Abstract In this paper we examine how Finnish municipalities’ expenditures depend on the share of citizens with foreign background out of the total population. Empirical analyses make use of Finnish panel data from 295 municipalities and 202 migrant nationalities for the period 1987–2018. It turns out that the share of foreign population tends to increase per capita expenditures up to the point where the respective semi-elasticity is about one. The result seems robust in terms of different control variables, subsamples of the data and estimation techniques. Sizeable differences between different nationalities could, however, be detected. Thus, we cannot assume that the use of public services is neutral in terms of demographic changes and that should be considered when making assessments on overall fiscal effects of migration.

Keywords: Government expenditures; Migration; Local government; H24; H31; H42; H71; J15; J61 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s10037-022-00168-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jahrfr:v:42:y:2022:i:1:d:10.1007_s10037-022-00168-z

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10037

DOI: 10.1007/s10037-022-00168-z

Access Statistics for this article

Review of Regional Research: Jahrbuch für Regionalwissenschaft is currently edited by Thomas Brenner and Georg Hirte

More articles in Review of Regional Research: Jahrbuch für Regionalwissenschaft from Springer, Gesellschaft für Regionalforschung (GfR) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().