ABSTRACT
Estimating the fiscal impact of immigrants is important for a number of reasons. Policymakers need estimates of short-and long-run fiscal effects of immigration in order to determine under which scenarios immigrants will be net fiscal contributors and under which scenarios they will be a net fiscal drain. Understanding the mechanics behind the fiscal impact of immigration can help policymakers target and alleviate other fiscal imbalances. For example, policymakers in countries with aging populations may aim to increase immigration in order to offset future labor and pension shortages. Understanding immigrants’ usage of public services and publicizing these figures may affect public perceptions, which in turn have the potential to shape immigration policy. Surveys show that opinions about immigrants are tied closely to perceptions about their fiscal impact (OECD, 2013).
