Quantifying the Impact of Immigration on the Spanish Welfare State

Authors: Collado M.D.¹; Iturbe-Ormaetxe I.²; Valera G.³

Source: International Tax and Public Finance, Volume 11, Number 3, May 2004 , pp. 335-353(19)

Publisher: Springer

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Abstract:

The Spanish population will experience significant aging in coming years. This demographic change will impose a heavy burden on the national budget. In particular, expenditure on pensions and health are expected to rise significantly. The inflow of immigrants could help to alleviate the fiscal burden that future generations will have to bear. In this paper we try to quantify the impact of immigration on the Spanish Welfare State, using the methodology of Generational Accounting. Our results suggest that the impact of immigration will be positive and significant.

Keywords: immigration; fiscal policy; generational accounting; welfare state

Document Type: Research article

DOI: http://dx.doi.org/10.1023/B:ITAX.0000021975.20256.ff

Affiliations: 1: Departamento de Fundamentos del Análisis Economico, Universidad de Alicante, E-03071, Alicante, Spain., Email: collado@merlin.fae.ua.es 2: Departamento de Fundamentos del Análisis Economico, Universidad de Alicante, E-03071, Alicante, Spain., Email: iturbe@merlin.fae.ua.es 3: Departamento de Economía y Empresa, Universidad Pablo de Olavide and Centr A, E-41013, Sevilla, Spain., Email: gvalbla@dee.upo.es

Publication date: 2004-05-01