From the TUC

Migrant workers pay more, take less

23 Jul 2009, by in International, Labour market, Working Life

The doyen of migration economics, Prof Christian Dustmann at UCL, has published research showing that East European migrants pay more in taxes than they use in social protection. Indeed they put in 30% more than they take out, unlike UK-born adults who claim more than they pay!

The gap is so wide that it’s unlikely to be challenged (unlike arguments over migrant workers’ impact on GDP per head, which seem to be marginal and swing between positive and negative depending on the research). It won’t stop the debate, of course, still less the ill-informed process of ‘argument-from-anecdote’ that surrounds social housing.

And this paper doesn’t show how individual workers (migrant or native) are affected, although since 32% of EU migrants have a degree and the average wage is £6.80 an hour, exploitation seems rife!

But it’s further evidence that migration benefits the economy as a whole.

2 Responses to Migrant workers pay more, take less

  1. Peter HJ
    Jul 24th 2009, 2:24 am

    Thanks for this Owen. Tell me, can you provide a link to the paper you are referring to? As a less-preferred option, could you give us the full title so we can track it down the old-fashioned way? All the best in your work, and thanks again for sharing this with us.

  2. Owen Tudor

    Owen Tudor
    Jul 24th 2009, 6:39 am

    Sorry Peter, I was blogging from my blackberry which makes hyperlinks difficult to insert. I was commenting on an FT report by Nicholas Timmins at http://www.ft.com/cms/s/0/d76e28e6-76cc-11de-b23c-00144feabdc0,dwp_uuid=70662e7c-3027-11da-ba9f-00000e2511c8.html But, interestingly, he doesn’t quote a source, and there’s nothing about this on Christian’s homepage either!