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Effects of immigration on labour markets and government budgets: the case of the Netherlands

Published online by Cambridge University Press:  12 July 2004

HANS ROODENBURG ,
ROB EUWALS  and
HARRY TERRELE
HANS ROODENBURG
Affiliation:
CPB Netherlands Bureau for Economic Policy Analysis, The Hague, The Netherlands, Sector Labour Market and Welfare State, CPB Netherlands Bureau for Economic Policy Analysis, PO Box 80510, 2508 GM, The Hague, The Netherlands. E-mail: h.j.roodenburg@cpb.nl
ROB EUWALS
Affiliation:
CPB Netherlands Bureau for Economic Policy Analysis, The Hague, The Netherlands, Sector Labour Market and Welfare State, CPB Netherlands Bureau for Economic Policy Analysis, PO Box 80510, 2508 GM, The Hague, The Netherlands.
HARRY TERRELE
Affiliation:
CPB Netherlands Bureau for Economic Policy Analysis, The Hague, The Netherlands, Sector Labour Market and Welfare State, CPB Netherlands Bureau for Economic Policy Analysis, PO Box 80510, 2508 GM, The Hague, The Netherlands.
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Extract

Employing methods extracted from the literature, in combination with data on the Dutch economy, we assess the impact of immigration on the labour market and the public sector in the Netherlands. Additional labour supply due to immigration will have only a limited positive effect on the total income of natives, though redistribution between native groups is relatively large. The long run fiscal impact of immigrants will only be positive if their labour market performance at least equals that of natives. We conclude that selective labour immigration may contribute to the economic well-being of the host country. However, large-scale immigration of labour is not considered to be effective in alleviating the financial burden of ageing in the Netherlands.

Type
Research Article
Information
European Review , Volume 12 , Issue 3 , July 2004 , pp. 377 - 398
Copyright
© Academia Europaea 2004

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