The fiscal impact of immigration: Empirical evidence at the Local Level

The fiscal impact of immigration refers to its effect on public finances. This policy brief discusses how local governments in the United States and Italy were affected by immigration and the role played by migrant skill levels. In the U.S., from 1990-2010, low-skilled immigrants generally decreased public revenues and expenditures, while high-skilled immigrants had the opposite effect. These impacts varied widely across U.S. counties, often explaining differing public attitudes toward immigration. In Italy, however, immigration from 2008-2015 improved fiscal conditions by increasing local revenues, primarily due to property tax policies. Overall, immigration’s fiscal effects are context-specific but either neutral or positive, suggesting that redistribution could offset any negative impacts.