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The Fiscal Impact of Immigration: Labor Displacement, Wages, and the Allocation of Public Spending

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dc.creatorMesa Guerra, Carlos Antoniospa
dc.creatorCastaño, Andrésspa
dc.date.accessioned2025-06-05T20:22:15Z
dc.date.available2025-06-05T20:22:15Z
dc.date.created2022-12-01spa
dc.date.issued2022-12-01spa
dc.descriptionWe reexamine the effect of immigration on public finances by accounting for second-order effects. We exploit exogenous variation in immigration across Colombian metropolitan areas between 2013 and 2018, resulting from the large increase in Venezuelan immigrants, and instrument immigrants’ residential location using pre-existing settlement patterns and the distance between origin-destination flows. We find that immigration did not reduce natives’ average fiscal contributions. Exploring the mechanisms in place, we document that immigration had no effect on employment, average wages in the upper half of the wage distribution, or hours worked that would have explained changes in labor-driven tax contributions. In addition, immigration did not trigger a decline in property values, and we find no evidence of changes in the composition of local public spending or costs being distributed among a larger population. This suggests that the composition of public expenditures is biased towards services that are rival in consumption and thus increase with population. Results in this paper indicate that, even when finding evidence of labor displacement or negative factor prices, immigration does not necessarily reduce natives’ average tax contributions.spa
dc.format.extent61 ppspa
dc.format.mimetypeapplication/pdfspa
dc.identifier.doihttps://doi.org/10.48713/10336_45596
dc.identifier.urihttps://repository.urosario.edu.co/handle/10336/45596
dc.language.isoengspa
dc.publisherUniversidad del Rosariospa
dc.publisherAlianza EFIspa
dc.publisher.departmentFacultad de Economíaspa
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 Internationalspa
dc.rights.accesRightsinfo:eu-repo/semantics/openAccessspa
dc.rights.accesoAbierto (Texto Completo)spa
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/4.0/spa
dc.source.instnameinstname:Universidad del Rosariospa
dc.source.reponamereponame:Repositorio Institucional EdocURspa
dc.subject.keywordImmigrationeng
dc.subject.keywordPublic financeseng
dc.subject.keywordPublic goodseng
dc.subject.keywordEmploymenteng
dc.subject.keywordWageseng
dc.subject.keywordProperty valueseng
dc.titleThe Fiscal Impact of Immigration: Labor Displacement, Wages, and the Allocation of Public Spendingspa
dc.typeworkingPaperspa
dc.type.hasVersioninfo:eu-repo/semantics/publishedVersionspa
dc.type.spaDocumento de trabajospa
local.department.reportFacultad de Economía
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