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6/15/13

'Immigrants no drain on European Economies

Migrants are not a drain on the public purse in developed countries, a pioneering study that measured the net fiscal impact of immigration in 27 Western countries showed on Thursday, contrary to widely held assumptions.

The Organization of Economic Cooperation and Development's (OECD) International Migration Outlook debunks several stereotypes about migration.

To evaluate the burden of migration on welfare systems the report compared immigrants' tax and social security contributions with their receipts in the form of social benefits and government services.

"Overall, it shows that the fiscal impact of immigration is close to zero on average over the OECD ... In other words, migration represents neither a significant gain nor drain for the public purse," the Paris-based club of 34 developed and emerging economies said.

The report comes in the midst of mounting debate in Europe about the benefits of migration, with some countries such as Germany and Britain, complaining that migrants are abusing their generous welfare programs.

It is a complaint also heard from nationalist parties across the continent, whose anti-immigrant platforms are wooing growing numbers of voters.

The OECD report showed that in most developed countries - including the United States, Britain, Germany, the Netherlands and Spain - immigrants are, in fact, net contributors to state budgets.

As a matter of fact Europe could actually use more immigration to combat the problems associated with its aging population.

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Labels: aging population, Economy, EU, Immigration, OECD

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