Scandinavian Working Papers in Economics

Research Papers in Economics,
Stockholm University, Department of Economics

No 2007:1: Fiscal Implications of Emigration

Lars Johansson ()
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Lars Johansson: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden

Abstract: This study examines the fiscal effects of emigration. A dynamic macroeconomic framework is used. The net peresent value of the fiscal effects of different types of individuals' emigration decisions is calculated. Individuals are differentiated w.r.t. age, gender, education, being immigrants or born in Sweden and how long they choose to stay abroad in case of emigration. This study expolores how the fiscal effects of emigration are contingent on these different personal characteristics and is applied to the case of emigration from Sweden in 1998. The estmated aggregate fiscal cost is SEK 11.6 billion or 0.62% of GDP. This cost is significantly larger than the cost of immigration.

Keywords: Migration; Emigration; Fiscal Impact; Fiscal Policy; Taxation

JEL-codes: E62; F22; H20; H50

42 pages, January 22, 2007

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