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Chapter · Costs & Economy

What does immigration cost — and why?

We start with the big picture, then go to what actually drives the outcome: employment. From there we follow the money over time — second generation, lifetime costs, and how it ripples into the business climate and housing market.

16 sections · ~24 min read

Overview

01Start here

Cost of immigration

The fiscal whole. NIER (Special Study 117, 2025) and ESO 2024 — the net result and the assumptions behind it.

Read the chapterCost of immigration
02

Work decides

The single most important variable. The employment gap between native- and foreign-born explains almost the entire cost — not origin itself.

Read the chapterWork decides
03

Work & benefits — time series

Employment split by native/foreign-born, households on income support and total benefits paid. SCB AKU and Socialstyrelsen — the raw data behind the chapter.

Read the chapterWork & benefits — time series
04

Tax burden

41.4% of GDP in 2024 — eighth highest in the OECD, seven points above the average. What do we get for the money? Sources: OECD, Ekonomifakta.

Read the chapterTax burden
05

Energy & electricity

SE1–SE4, the north/south gap and the 2022 price peak. Closed reactors, EU gas, weather — many causes, no simple conclusion.

Read the chapterEnergy & electricity
06

By residence permit

Labour, family, refugee, student — four very different economic outcomes. Why averaged totals hide more than they show.

Read the chapterBy residence permit
07

Second generation

Does the outcome converge over generations? SCB data on education, employment and income for children of foreign-born.

Read the chapterSecond generation
08

Long-term welfare costs

Pensions, healthcare, elderly care over the life cycle. When costs arise and who bears them.

Read the chapterLong-term welfare costs
09

Lifecycle: 74,000 SEK/year

How costs distribute across a lifetime — childhood, working age, retirement. Breakdown of net contribution by age interval.

Read the chapterLifecycle: 74,000 SEK/year
10

Cohorts over time

Long-term costs per immigration cohort — how outcomes differ between groups arriving under different periods and rules.

Read the chapterCohorts over time
11

Business & talent flight

Outflow of highly educated and entrepreneurs. What Tillväxtanalys and Migration Agency emigration data show.

Read the chapterBusiness & talent flight
12

Property prices

How population pressure and housing shortages translate into prices and rents — and where the effect is largest.

Read the chapterProperty prices
13

Municipal reality

What it means in the municipal budget — social services, schools, income support. NIER model by immigration reason.

Read the chapterMunicipal reality
14

Municipal — flat rate vs actual cost

State flat-rate compensation rarely covers the full bill. Income support, SFI, schools and social services per Riksrevisionen, Statskontoret and SKR.

Read the chapterMunicipal — flat rate vs actual cost
15

Scenarios — adjust assumptions

Turn the dials on employment, volume and composition yourself. See how the public economy responds to different assumptions.

Read the chapterScenarios — adjust assumptions
16

Sida & foreign aid

Review of UO7 (~56 bn SEK). Volume, top recipients, deductions and critique from EBA, Riksrevisionen and OECD DAC.

Read the chapterSida & foreign aid