Fiscal impact of immigration 2014 report

If you are interested in fiscal impact of net migration, this study “Fiscal effects of immigration to the UK” is worth reading.

The Economic Journal,Doi: 10.1111/ecoj.1218 Christian Dustmann and Tommaso Frattini

Some highlights

  • EU migrants cost the UK government £408.12 per second in public expenditures, and contribute £463.35 per second in revenue.
  • Of all EU migrants, nearly nine in ten are of working age. According to long-term international migration data collected by the ONS, around 48.9 % of EU migrants that came to the UK in 2013 were between the ages of 15 and 24.
  • Meanwhile, 40.9% of European migrants were between the ages of 25 and 44.
    One per cent of EU migrants were over the legal age of retirement.
  • Between 2007 and 2011, European migrants made a positive net contribution of £15.2bn – amounting to £2,610 per capita. Over that same time period, UK natives cost the government £1,900 per capita. Comparatively, non -EEA migrants posed a net fiscal cost of £332 per capita.
    This disparity likely stems from the fact that European migrants are 43 % less likely to be in receipt of state benefits, and 7% less likely to live in social housing.


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