Aarhus Universitetsforlag

Immigration and the Public Sector in Denmark

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194 pages
ISBN 87 7288 896 2



More about the book

About the book

As Denmark, like the other countries of Western Europe, evolves into more of an immigrant nation, it becomes critical to examine the consequences of such fundamental changes to its population. This volume deals with the economic effects of immigration on the Danish public sector, in terms of both public income (through taxes) and public expenses (through transfers and the use of services). The authors concentrate on developments in the 1990s, carefully constructing their analysis on a strong statistical foundation.

One major finding is that the fiscal impact on the public sector has been especially marked in the case of immigrants from non-Western countries, while Western immigrants have had an impact much closer to that of native-born Danes.

The book attributes this difference to two major factors: the non-Westerners have more children, and they experience more difficulty in joining the workforce. While the economic upturn of the late 90s increased their employment rate, it never exceeded 26%, and those who did work earned lower wages than their Western-born counterparts. If the net contribution of non-Western immigrants is to equal their net cost to the state, the authors calculate that their employment rate would have to more than double.

Table of contents


The authors' foreword

1. Economic Effects of Immigration: The Background

2. Calculating the Fiscal Impact of Immigration: Principles

3. Immigration and the Public Sector: Experiences from Different Countries

4. The Data

5. The Labour Market, the Demographic Structure and Redistribution in the 1990s

6. Factors Influencing Net Transfer to the Public sector: A Study Based on Cross-Sectional Data
Appendix Tables to Chapter 6
Appendix Figures to Chapter 6

7. A Life-Cycle Analysis Based on Individual Data
Appendix Figures to Chapter 7

8. A Panel Data Study of the Development of the Individual Net Transfers;
Appendix 1 to Chapter 8. Parameters estimated in the equations with change in net transfer as dependent variable
Appendix 2 to Chapter 8. Probit estimates of the propensity to emigrate from Denmark

9. Effects on Different Parts of the Public Sector

10. Summary and Conclusions


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