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The fiscal impact of 30 years of immigration in France: an accounting approach

Ndeye Penda Sokhna, Lionel Ragot () and Xavier Chojnicki

No 2018-36, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: This article aims to evaluate the net contribution of immigration to the public finances of France between the late 1970s and the early 2010s. We developed an accounting method that disaggregates the primary deficit into the specific contributions of immigrant population and native population. We show that the net contribution of immigrants is generally negative over a relatively long period, but remains at an extremely low level (+/-0:5% of the french GDP, reduced to +/-0:2%, with the exception of 2011). The relatively negligible effect of immigrants on the public accounts is explained by a favourable demographic structure offsetting their lower net individual contribution. However, the 2008 financial crisis has significantly degraded the economic condition of immigrants. The net per capita contribution of EU immigrants has significantly declined since 2000 and is now similar to values from third country immigrants.

Keywords: International Migration; Public Finances; Social Protection (search for similar items in EconPapers)
JEL-codes: E62 F22 H62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-mac and nep-mig
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2018-36

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