Inmigration and the public economy: prejudices, myths and misperceptions of the spanish case

Abstract

It is twenty years since the beginning in Spain of an immigration cycle without precedent in the international migration scenario. After receiving more than 6 million new citizens continuously throughout a cycle of growth, crisis and economic recovery, the article makes an exhaustive analysis of the connection between immigration and the public economy in Spain. It analyses in detail the empirical evidence which makes it possible to disprove the usual prejudices, myths and misperceptions about immigration and the public economy. The analysis of a specific context such as that of Spain allows for a detailed quantification of the non-specific and aggregated findings shown in the literature on immigration and the public economy. The article shows evidence that refutes the so-called welfare magnet, accurately reveals the scant impact of immigration on public spending, quantifies the essential contribution to tax collection and rejects its negative net fiscal impact.