Life Cycle Surplus and Life Cycle Deficit of Immigrants versus Natives

Authors

Persida Cica Tofoska Apostolova, University of Ljubljana, School of Economics and Business, PhD Candidate, Ljubljana, Slovenia
Tanja Istenič, University of Ljubljana, School of Economics and Business, Ljubljana, Slovenia
Jože Sambt, University of Ljubljana, School of Economics and Business, Ljubljana, SloveniaFollow

Keywords

National Transfer Accounts, Immigrants, EU countries, Economic independence, Life cycle deficit financing

Abstract

Recently, immigration and its socio-economic aspects have been in the centre of the European Union leaders’ agenda. In this paper, we apply the National Transfer Accounts (NTA) methodology to calculate the complete set of NTA results for immigrants and natives in five EU countries. We find that due to the lower labour income, which cannot be offset by the lower consumption, immigrants experience a shorter independence period and a much lower aggregate life cycle surplus than natives. The identified cross country differences between immigrants and natives could be used as a proxy of the achieved level of integration of immigrants.

Recommended Citation

Tofoska Apostolova, P. C., Istenič, T., & Sambt, J. (2022). Life Cycle Surplus and Life Cycle Deficit of Immigrants versus Natives. Economic and Business Review, 24(1), 36-51. https://doi.org/10.15458/2335-4216.1296

Creative Commons License

This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.