TransEuroWorks: The Net Fiscal Position of Migrants in Europe
Migrants are far less of a burden on the budget of European countries than is often thought. In many cases, they make a more positive contribution than the native-born population does. In some countries, migrants even make a net contribution to the public purse. This is the conclusion of research carried out by economists at Leiden University, the Netherlands. These findings have important implications for a number of societal and political debates about labour migration and social policy in several European countries. Moreover, the study also contributes to policy debates at the EU-level regarding the coordination of social and labour market policies and further fiscal integration.
The economists calculated the direct net contribution of migrants (from within and outside the EU) and the native-born population of 15 European member states from 2007 to 2018. They deducted government benefits and allowances, such as unemployment, retirement, and housing benefits, from taxes and contributions paid to the government. The results show that migrants cost most countries in the study less than the native population.
One of the main reasons for this discrepancy is age. Immigrants in the EU are generally fairly young. The native-born population in the countries studied is quite a bit older. Many of these people receive pensions, and their reliance on pensions is growing over time as the average age increases. Furthermore, older migrants often have lower pensions because they have paid in less or accumulated them in foreign countries.
An upward trend can be seen over the years in the net contribution of migrants in almost all the countries studied.
Drs. Giacomo Boffi (Leiden University): "This study debunks the populist myth that migrants are more of a burden on social security and the treasury than the native-born population. The opposite proves to be true in several countries.”
Impact
This research is part of the TransEuroWorkS research project. TransEuroWorkS is an innovative, multidisciplinary project providing analysis and policy recommendations for the future world of European work and social protection. It will provide new, more integrative understandings of how fundamental changes to the labour market and European context can be better managed through national and European Union (EU) level social protection policies.
More info: https://transeuroworks.eu/wp-content/uploads/2024/05/The-net-fiscal-position-of-migrants-in-Europe_WP.pdf, https://transeuroworks.eu/wp-content/uploads/2024/05/Decomposing-the-net-fiscal-position-of-migrants-in-Europe_WP-1.pdf, https://transeuroworks.eu/consortium/, https://www.universiteitleiden.nl/en/news/2024/05/migrants-cost-european-governments-less-than-their-native-born-citizens-do
