Attracting Migrants: Cost or Income?

The economic impact of migration is not limited to migrants' earnings or their country of origin. The tax system, government benefits and employment opportunities also determine what share migrants will have in public revenues and expenditures in the long run.

Ambassador Arjan: The economic impact of immigration is not limited to the income of immigrants or their country of origin; The tax system, government benefits, and employment opportunities also determine the long-term contribution of immigrants to public revenues and expenditures.

In recent years, immigration has become one of the most important economic and political issues in Europe; An issue that affects not only the labor market, but also government spending and the stability of welfare systems.

In the meantime, the amount of taxes that immigrants pay compared to the cost of services and government support they receive has become one of the main axes of this debate.

However, a research from Stanford University shows that it is not possible to assess the financial effect of immigration only by examining the income of individuals or their country of origin. Differences in the tax system, retirement benefits and employment opportunities can cause immigrants with similar economic conditions to have a different impact on the public budget in different countries.

The experience of Britain, France and Germany is an example of these differences.

For more details, watch this video.