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Is the Net Fiscal Burden a Proper Predictor of the Political Attitude towards Migration?

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Abstract

Net fiscal burden has been used as an indicator for the native-born income losses from low-skilled migration. But in the context of a pay-as-you-go welfare system with overlapping generations, the indicator is not correct. It does not properly predict the gains for the native- born from the support the migrants provide by increasing the workforce to the welfare system.

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© 2014 Assaf Razin and Efraim Sadka

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Razin, A., Sadka, E. (2014). Is the Net Fiscal Burden a Proper Predictor of the Political Attitude towards Migration?. In: Migration States and Welfare States: Why Is America Different from Europe?. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137443809_11

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