STATE AND LOCAL FISCAL IMPACTS OF UNITED-STATES IMMIGRANTS - EVIDENCEFROM NEW-JERSEY

This paper uses a household-level estimation strategy to develop new e vidence on the state and local fiscal impacts of US immigration. The m ethodology is applied to 1980 census microdata for New Jersey, a state that now ranks fifth in the nation in the size of its foreign-born po pulation. All New Jersey households combined in 1980 imposed a net fis cal burden on state government of more than US$2.1 billion, and a net burden on the aggregate of all local governments totaling nearly $ 690 million. Both native- and immigrant-headed households received govern ment benefits worth more than they paid in taxes. The typical immigran t-headed household imposed an average fiscal burden of $ 350 on local governments throughout New Jersey, versus roughly $ 225 for each nativ e-headed household. At the state level, however, net fiscal impacts of immigrants and natives were similar: an average annual deficit of $ 8 41 for immigrants compared with $ 846 for native households. There are larger disparities among the foreign-born population than between nat ive-headed and immigrant-headed households. Latin American households have the most unfavourable fiscal implications of any immigrant subgro up. Taken together, our findings illustrate the overriding importance of household income and number of school-age children as determinants of taxes paid, benefits received and, ultimately, of net fiscal impact s.