On the economics of immigration: some empirical evidence for Switzerland

Abstract

The paper sheds light on the question of whether immigration represents a cost factor or an economic benefit for the host society. Starting with some conceptual issues of immigration research, it then gives some theoretical and empirical insights on this question. In particular, empirical evidence on the distributional effects of immigration is presented for Switzerland. Based on a large first-hand data set by the Swiss Statistical Office, this case study shows that in 1990, the presence of resident foreigners has not put additional strain on the public coffers, but that, on the contrary, there was a favourable financial effect for the native population. An overall judgement on the distribution issue, with special attention given to public goods and club goods, is thus possible.