ANALYSIS: Immigration and government borrowing [Chris Dillow]

If you’re serious about wanting to reduce government borrowing, you should encourage more immigration, at least of a particular type. That’s the message of an article in the latest issue of Fiscal Studies (early version here).
Christian Dustmann and colleagues show that migrants from the A8 nations “have made a significant net contribution to the UK fiscal system.” This is because even those of them who are eligible for welfare benefits are much less likely to claim them than are native  people. They are also much less likely to live in social housing.

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