Assessment of the immigrants’ impact on Slovak economy

Abstract

The migration process is becoming more and more intensive in European region. There are different opinions about effects from immigration on country economy. Most of them show the positive effect via fulfilling deficit in labour market and tax payments. From the other hand, there is negative long-term effect on social security system because of poor integration of immigrants into domestic population. This paper analyses effects from immigration based on United nations National transfer accounts methodology invented by Lee and Mason. This methodology is called to break down system of national accounts with respect to age groups or generations and shows economic flows between them. Findings of this paper show that earnings and consumption behaviour of immigrants and natives in Slovakia differs – immigrants work after retirement age, earn more and consume less, what leads to positive effects in aggregate life cycle deficit.