Fiscal effects of emigration by selected occupational groups

The emigration of citizens educated and employed in Germany has both population-statistical and labour market relevance along with fiscal policy implications. Using two exemplary emigrants - a skilled worker and a medical doctor - this study calculates the corresponding fiscal balances. The public costs connected with the publicly financed education are compared with the fiscal benefits that, in case of migration, do not accrue to the country that financed the education but to the country to which the graduates emigrate. Had they remained in Germany, they would have made a positive contribution over their working lives to the community. The results of the study show that the migration of skilled labour causes considerable burdens to the public budgets and the social insurance funds. As a result, policy-makers must create proper incentives for skilled labour to remain in Germany by a reform of the taxation and social insurance systems.