EU immigration and the welfare state

What is it about?

The 'welfare burden thesis' of EU immigration has sounded loud and wide in recent years, just recall the Brexit debate. In this piece we put the thesis to empirical test. On basis of a unique dataset of administrative data, we show that over a longterm period of significant change (2002-2013), EU immigrants made a significant positive net contribution to the taxfinanced welfare state of Denmark.

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Why is it important?

The findings invite to rethink the free movement–welfare state nexus within the EU. Between 2002 and 2013, EU Citizens made a significant positive contribution to the welfare budget. Also EU immigrants from the new member states as well as immigrants with shortterm residence proved to contribute positively in welfare terms, however they did so less than the EU population from the old member states and those with longterm residence - but they also benefitted less welfarewise.