Program
Subjects
Works
Book Types
Back to issue
Cover of: Long-Run Fiscal Consequences of Refugee Migration – The Case of Austria
Johannes Holler, Philip Schuster

Long-Run Fiscal Consequences of Refugee Migration – The Case of Austria

Section: Articles
Volume 76 (2020) / Issue 3, pp. 266-310 (45)
Published 12.08.2020
DOI 10.1628/fa-2020-0009
  • article PDF
  • available
  • 10.1628/fa-2020-0009
Due to a system change, access problems and other issues may occur. We are working with urgency on a solution. We apologise for any inconvenience.
Summary
We use a rich numerical OLG model of Auerbach-Kotlikoff type to simulate the long-run effects of refugee migration starting in 2015 for a country with an aging society and a generous welfare system, namely Austria. The respective refugee cohorts are on average younger, less educated, and less productive than both natives and the average migrant. The net fiscal contribution results from two opposing effects: a positive demographic effect which is counteracted by worse labor market outcomes. We robustly find that public debt is higher throughout the simulation horizon 2015–2060 than in the baseline. We further analyze the group-specific welfare consequences resulting from differentiated wage effects.