Is immigration good or bad? Is immigration good or bad for finance?

Can immigrants contribute to finance or become a burden? The report does not give a clear answer. After all, the financial impact of immigrants is highly related to the background environment of the immigrant countries. Generally speaking, the net impact of immigrants on finance is very small, and the contribution of immigrants to public finance is roughly equal to the welfare they enjoy.

The financial impact of immigrants depends on their personal conditions and the policy environment in which they move to the country. Young migrant workers with technological advantages can often bring more benefits to public finance. The ability to absorb immigrants into the domestic labor market, the right to work and the acquisition of social welfare for immigrants are also influencing factors. In addition, the consumption of goods and services immigrated to the country has also promoted economic growth to some extent.

Strengthen macro-policy guidance

According to the report, it is beneficial to enhance the contribution of immigrants to finance by implementing appropriate immigration policies and paying attention to policy coherence. The survey shows that restrictive policies on immigration may limit the potential related economic benefits. In many cases, compared with local residents, young immigrants use less public services and make greater contributions to fiscal revenue. Although the problem of social aging in high-income countries cannot be solved by immigration alone, increasing young immigrants can reduce tax pressure and increase fiscal revenue to some extent by changing the ratio of working-age population to elderly population.

Selective immigration policy tends to attract highly skilled talents, but some countries also need some laborers with basic skills according to their national conditions. For example, in countries with an aging population, there is a large labor gap in industries such as nursing services, and it is necessary to increase legal immigrants of specific types of work to alleviate related problems.

Promote the social integration of immigrants

According to this report, labor migrants can make more contributions to public finance. This is because labor immigrants tend to have higher education level, less welfare needs and deeper participation in labor market activities.

From the financial point of view, accepting refugees is a net cost, but they often only account for a small part of the population, so the impact on the financial balance is minimal. Participation in the labor market is the key determinant of whether immigrants can have a positive impact on finance. In many cases, raising the employment level of immigrants to the level of their own population will bring huge economic benefits.

According to the report, the evidence about the impact of immigrants on the labor market shows that the impact of immigrants on average wages and local employment is usually very small, and excluding immigrant groups from the labor market may lose potential economic benefits. There is evidence that the policy of combining investment with immigration is economically rewarding. In fact, the long-term financial cost of immigrants' non-integration may be higher than the short-term cost of their integration. In addition, the integration quality of the labor market also needs to be improved. Immigrants usually have a high employment rate, but the quality of employment is low. Vocational training and language training can improve the employability of immigrants, thus increasing their tax contribution. For immigrant countries, the key to the financial contribution of immigrants and their own people is tax design. The design of improving the government's tax capacity is helpful to increase public income and enhance the employment fairness of immigrants and their own people.