A RHOMOLO analysis on the social, economic, and fiscal effects of immigration into the EU

RHOMOLO has been used by Patrizio Lecca and D'Artis Kancs to study the issues of migration and the integration of refugees in the EU society and labour markets.

Apart from humanitarian aspects, a sustainable integration of accepted asylum seekers is important also for social, economic, budgetary and other reasons. Although the potential socioeconomic consequences are featured in the current EU policy agendas, little scientific evidence has supported the policy debate in the context of the current refugee crisis in the EU so far.

The RHOMOLO simulation results suggest that, although refugee integration may be costly for the public budget, in the medium to long‐run, the social, economic and fiscal benefits may significantly outweigh the short‐run integration costs. Depending on the integration policy scenario and policy financing method, the annual long‐run GDP effect would be between 0.2% and 1.6% above the baseline.