Immigration and the public transfer system: some empirical evidence for Switzerland

"Do immigrants subsidize the native population or vice versa? Is immigration a cost factor or a net benefit for the public transfer system? On the basis of the 1990 Swiss Consumer Survey, an attempt is made to answer these questions empirically.... The degree of participation of foreigners in the Swiss welfare state is estimated.... To this end, the public transfer balance (difference between government revenue and government expenditure) is empirically estimated for both native and foreign households. The method chosen covers public monetary transfers as well as the supply of goods and services by the government (real transfers). Social security insurance, redistribution through taxes, infrastructure investment (club goods) and immaterial goods such as the legal system (public goods) are thus covered."