How Labor Migrants Fare

Part of the series Population Economics pp 405-424

Immigrants and the public sector budget — accounting exercises for Sweden

  • Björn GustafssonAffiliated withDepartment of Social Work, University of GöteborgInstitute for the Study of Labor (IZA)
  • , Torun ÖsterbergAffiliated withDepartment of Social Work, University of Göteborg

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Net contributions to the public sector budget in Sweden are investigated using large samples of foreign born and native born. The accounts build on various assumptions including that expenditures on public consumption are allocated according to the age of the person. The results indicate that during the period 1983 to 1992 net contributions of immigrants deteriorated. Upon arrival to Sweden, immigrants on average place a burden on the public sector budget but after a few years this no longer applies. Refugees initially put a larger burden on the public sector budget than other immigrants, but such a difference declines with years since immigration.

Key words

Immigration employment age structure public sector

JEL classification

F22 J15 H5