Does the arrival of asylum seekers lead to a deterioration in the economic performance and public finances of the European countries that host them? The answer is no, according to economists from the CNRS, Clermont-Auvergne University, and Paris-Nanterre University, who have estimated a dynamic statistical model based on 30 years of data from 15 countries in Western Europe. On the contrary, the economic impact tends to be positive as a proportion of the asylum seekers become permanent residents. This study is published in Science Advances on June 20, 2018.
During the period studied (1985-2015), Western Europe experienced a significant increase in the flows of asylum seekers following the wars in the Balkans between 1991 and 1999 and, after 2011, in the wake of the Arab Springs and the conflict in Syria. At the same time, flows of migrants, particularly EU nationals, have increased after the EU’s expansion eastwards in 2004. These events provide numerous opportunities to test the consequences of an unforeseen increase in migration flows on GDP per capita, the unemployment rate, and public finances.
The researchers show that an increase in the flow of permanent migrants (i.e., not asylum seekers) at a given date produces positive effects up to four years after that date: GDP per capita increases, the unemployment rate falls, and additional public expenditure is more than compensated by the increase in tax revenues. In the case of asylum seekers, no negative effect is observed and the effect becomes positive after three to five years, when a proportion of asylum seekers obtain asylum and join the category of permanent migrants.
According to these results, it is unlikely that the ongoing migration crisis is a burden for European countries; on the contrary, it could be an economic opportunity.
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