The Effects of Immigration on Social Expenditure in Host Countries

Takuya Matsuyama and Tomomi Miyazaki
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Takuya Matsuyama: Graduate School of Economics, Kobe University

No 1708, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: This paper examines the relationship between immigration and social welfare expenditure in the host countries using OECD panel data. Particular focus is placed on the age structure and educational level of immigrants. Empirical results show that while unskilled immigrants including asylum seekers are not necessarily a burden to the host countries, medium and highly skilled immigrants contribute to a decrease in social expenditure. In particular, highly skilled immigrants mitigate the increase in social expenditure related to welfare for the elderly driven by the aging of immigrants.

Keywords: Immigration; social welfare expenditure (search for similar items in EconPapers)
JEL-codes: H55 J15 J61 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2017-03
New Economics Papers: this item is included in nep-age, nep-int and nep-mig
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