The Foreign-Born Population in the European Union and its Contribution to National Tax and Benefit Systems Some Insights from Recent Household Survey Data

28 Pages Posted: 7 Feb 2010

See all articles by Luca Barbone

Luca Barbone

CASE - Center for Economic and Social Research; Institute for the Study of International Migration

Salman Zaidi

World Bank

Mikhail Bontch-Osmolovski

World Bank - DECRG

Date Written: November 30, 2009

Abstract

Despite the purported surge in internal migration following the 2004 enlargement of the European Union, data from the 2006 European Union Survey of Income and Living Conditions show that internal migrants are a relatively small share of the European Union’s population. Depending on the exact definition used, only about 1 to 2 percent of the population of European Union-13 countries (members prior to the 2004 enlargement, not including Germany and Luxembourg) were born in other European Union countries, while the corresponding share for European Union-4 countries (Poland, Hungary, Czech Republic, and Slovakia) is even lower. By contrast, about 6 percent of the population of European Union-13 countries was born outside the European Union. On examining the demographic and socio-economic background of the migrant population (both from within as well as outside the European Union), this paper finds that migrants tend to include a concentration of both low as well as highly educated workers. Both sets of migrants uniformly contribute to raising the working-age population of receiving countries. Using data on average incomes and taxes paid and benefits received by migrant and non-migrant households, the authors find no evidence to support the contention that migrant workers contribute much less in taxes than the native-born population, or consume significantly higher benefits. On the contrary, our calculations suggest that migrant workers make a net contribution of approximately 42 billion euros to the national tax and benefit systems of European Union-13 countries.

Keywords: Migration, EU, Fiscal Contribution

JEL Classification: J61,H50

Suggested Citation

Barbone, Luca and Zaidi, Salman and Bontch-Osmolovski, Mikhail, The Foreign-Born Population in the European Union and its Contribution to National Tax and Benefit Systems Some Insights from Recent Household Survey Data (November 30, 2009). Available at SSRN: https://ssrn.com/abstract=1549362 or http://dx.doi.org/10.2139/ssrn.1549362

Luca Barbone (Contact Author)

CASE - Center for Economic and Social Research ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland

Institute for the Study of International Migration ( email )

Whitehaven Street
Washington, DC
United States

Salman Zaidi

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Mikhail Bontch-Osmolovski

World Bank - DECRG ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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