We are grateful to Bernt Bratsberg, Michael O'Connor, Ian Preston, Oddbjørn Raaum, Robert Rowthorn, Mervyn Stone, Frederic Vermeulen and Nigel Williams for comments and suggestions on earlier versions of this article.
The Fiscal Effects of Immigration to the UK
Version of Record online: 4 NOV 2014
© 2014 Royal Economic Society
The Economic Journal
Volume 124, Issue 580, pages F593–F643, November 2014
How to Cite
Dustmann, C. and Frattini, T. (2014), The Fiscal Effects of Immigration to the UK. The Economic Journal, 124: F593–F643. doi: 10.1111/ecoj.12181
- Issue online: 4 NOV 2014
- Version of Record online: 4 NOV 2014
We investigate the fiscal impact of immigration on the UK economy, with a focus on the period since 1995. Our findings indicate that, when considering the resident immigrant population in each year from 1995 to 2011, immigrants from the European Economic Area (EEA) have made a positive fiscal contribution, even during periods when the UK was running budget deficits, while Non-EEA immigrants, not dissimilar to natives, have made a negative contribution. For immigrants that arrived since 2000, contributions have been positive throughout, and particularly so for immigrants from EEA countries. Notable is the strong positive contribution made by immigrants from countries that joined the EU in 2004.