Over the period 1994-2013, the net fiscal contribution (federal, state, and local combined) of first-generation immigrants was, on average, consistently less favorable than that of native-born generations. Annual cross-sectional data reveal that, compared with the native-born, first-generation immigrants contributed less in taxes during working ages because they were, on average, less educated and earned less. However, this pattern reverses at around age 60, when the native-born (except for the children of immigrants) were consistently more expensive to government on a per-capita basis because of their greater use of social security benefits.
During the same 1994-2013 time period, second-generation adults — the children of immigrants — had, on average, a more favorable net fiscal impact for all government levels combined than either first-generation immigrants or the rest of the native-born population. Reflecting their slightly higher educational achievement, as well as their higher wages and salaries, the second generation contributed more in taxes on a per capita basis during working ages than did their parents or other native-born Americans.