Working Paper: CEPR ID: DP934
Authors: Rene Weber; Thomas Straubhaar
Abstract: The paper deals with the distributional effects of immigration into Switzerland. Focusing on the government budget, it explores empirically whether resident foreigners are a burden or a benefit to the Swiss public transfer system. The estimation is based on the 1990 Consumer Survey by the Swiss Statistical Office. It is shown that, in 1990, the presence of resident foreigners has not put additional strain on the public coffers. On the contrary, there was a favourable financial effect for the native population. A detailed analysis of this profitable transfer result shows the influence of: age, qualification of the household head, and the number of children in the household. Furthermore, the sample composition is an important determinant of this outcome.
Keywords: immigration; public transfers; budget incidence
JEL Codes: C21; H22; H50
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| resident foreigners in Switzerland (F22) | net contributors to the public transfer system (H87) |
| net contributors to the public transfer system (H87) | total economic gain for the host country (O57) |
| household characteristics (age, qualification, number of children) (D19) | transfer balance (F16) |
| age of household head (D19) | transfer balance (F16) |
| age of household head (D19) | transfer balance (initial rise and then fall) (F16) |