The Indirect Fiscal Benefits of Low-Skilled Immigration

Sachs, Dominik Colas, Mark

The Indirect Fiscal Benefits of Low-Skilled Immigration - American Economic Journal: Economic Policy 2024 - 515-550

Low-skilled immigrants indirectly affect public finances through their effect on resident wages and labor supply. We operationalize this indirect fiscal effect in a model of immigration and the labor market. We derive closed-form expressions for this effect in terms of estimable statistics. An empirical quantification for the United States reveals an indirect fiscal benefit for one average low-skilled immigrant of roughly

1945-7731


Immigrant Workers, Labor Standards: Labor Force Composition
includes inheritance and gift taxes, State and Local Government: Health
Labor Productivity, Geographic Labor Mobility
Non-labor Discrimination, Human Capital
Economics
Education