The aim of the paper is to analyse the effects of economic immigration on subnational government finance (SNG) in Poland. The goal to achieve is to answer the following research question: what are the fiscal effects of immigration on SNG budget revenues and expenditures. To answer this question, logarithmic models were developed. The analysis refers to the years 2007-2016. In this respect, data from Statistics Poland - referring to budget revenues and expenditures of communes, cities of district status, districts and voivodeships - were used. As far as immigration statistics are concerned, data from the Ministry of Family, Labour and Social Policy were used. The results indicate an increase in both revenues and expenditures of SNG as a result of immigration. Such results can be explained inter alia by the nature of migration - research were focused on economic immigration. Results confirm that the level of employment of foreigners is one of the determinants shaping the fiscal effect of immigration. Moreover, the impact of economic immigration on SNG budget revenues and expenditures depends on the structure of this budget. This explains the differentiated results of the analysis of the impact of immigration on SNG in different countries. The positive correlation between immigration and SNG revenues in Poland can be associated with a high share of subnational governments in personal income tax revenues as this tax is one of the main categories of SNG revenues. Furthermore, results show that the impact of immigration on local government budgets in Poland is modest. This confirms the conclusions drawn by other authors (e.g. Auerbach and Oreopoulos), that in the long term, immigration cannot be considered as a potential instrument for resolving fiscal imbalances.
If the inline PDF is not rendering correctly, you can download the PDF file here.
Auerbach A.J. Oreopoulos P. (1999). Analyzing the Fiscal Impact of U.S. Immigration. American Economic Review 89(2) 176-180.
Bodvarsson Ö.B. Van den Berg H. (2013). The Economics of Immigration: Theory and Policy. New York Heidelberg Dordrecht London: Springer.
Chan J. (2018). The Effect of Immigration on Local Public Finances. Retrieved from: https://ssrn.com/abstract=2976525.
Dustmann Ch. Frattini T. Halls C. (2010). Assessing the Fiscal Costs and Benefits of A8 Migration to the UK. Fiscal Studies 31(1) 1-41.
Golinowska S. (2004). Popyt na pracę cudzoziemców. Polska i sąsiedzi. Warszawa: IPiSS.
Grubel H. Grady P. (2012). Fiscal Transfers to Immigrants in Canada: Responding to Critics and a Revised Estimate. Fraser Institute 1-43.
Javdani M. Pendakur K. (2014). Fiscal Transfers to Immigrants in Canada. Journal of International Migration and Integration 15(4) 777-797.
Klimek D. (2015). Funkcja ekonomiczna migracji z Ukrainy do Polski. Łódź: Monografie Politechniki Łódzkiej.
Klimek D. (2016). Wpływ imigracji zarobkowej na rozwój gospodarczy kraju i regionów. Research Papers Of Wroclaw University of Economics 418 136-144.
Lee R. Miller T. (2000). Immigration Social Security and Broader Fiscal Impacts. American Economic Review 90(2) 350-354.
Markowski K. (2008). Ekonomiczne aspekty migracji. In M.S. Zięba (Ed.) Migracja – wyzwanie XXI wieku. (pp. 37-52). Lublin: Katolicki Uniwersytet Lubelski Jana Pawła II. Lubelska Szkoła Biznesu Sp. z o.o. Fundacji Rozwoju KUL.
Ministry of Finance (2017). Sprawozdanie z wykonania budżetu państwa za 2016 r. Warszawa.
Ministry of Family Labour and Social Policy (2018). Cudzoziemcy pracujący w Polsce – statystyki. Retrieved from: https://archiwum.mpips.gov.pl/analizy-i-raporty/cudzoziemcy-pracujacy-w-polsce-statystyki/.
OECD (2018). Subnational Governments in OECD Countries: Key Data (brochure). Retrieved from: http://dx.doi.org/10.1787/region-data-en.
Ruśkowski E. Salachna J.M. (2004). Ustawa o dochodach jednostek samorządu terytorialnego. Komentarz. Warszawa: Wydawnictwo ABC.
Spearman K. (2007). Financial Management for Local Government. London: Routledge.