A recent report by the Institute of Labor Economics (IZA) has shed light on the fiscal challenges posed by immigration in the Netherlands since 2016.
The study, hailed as one of the most comprehensive on the subject, scrutinizes data across generations, regions of origin, and migration motives, revealing that only 20% of immigrants make a net positive contribution to public finances.
Immigrants arriving for work are the only group that bolsters the state budget, while those entering for family, education, or asylum reasons generate significant fiscal deficits. Asylum seekers, in particular, create a staggering average negative impact of over €400,000 per person, largely due to low workforce participation and high reliance on social assistance.
The findings also highlight stark disparities based on regions of origin. Immigrants from Western nations generally integrate better and contribute positively, whereas those from non-Western areas, like sub-Saharan Africa and the Middle East, impose higher costs. For some countries in the Horn of Africa, the average negative fiscal impact per person reaches €315,000.
Even the second generation fails to offset these trends, despite achieving similar educational outcomes as native Dutch students on standardized tests. Their lower earnings lead to reduced tax contributions and continued reliance on public benefits.
The report doesn’t shy away from critiquing past policies. Researchers point out that Dutch authorities have historically sidestepped examining immigration’s economic impact for political reasons. The authors stress the urgent need for a data-driven migration policy, especially as immigration remains a pressing issue.
To address these challenges, the study advocates prioritizing European labor migrants while reassessing aid structures to mitigate the fiscal burden of other groups. According to the report, these measures could help stabilize the budget and ensure the Netherlands’ long-term economic viability.
