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Does immigration boost per capita income?

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  • Felbermayr, Gabriel J.
  • Hiller, Sanne
  • Sala, Davide

Abstract

Using a cross-section of countries, we adapt Frankel and Romer's (1999) IV strategy to international labor mobility. Controlling for institutional quality, trade, and financial openness, we establish a robust and non-negative causal effect of immigration on real per capita income.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 107 (2010)
Issue (Month): 2 (May)
Pages: 177-179

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Handle: RePEc:eee:ecolet:v:107:y:2010:i:2:p:177-179

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Gravity model International trade International migration Cross-country income regression;

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References

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  1. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3643, C.E.P.R. Discussion Papers.
  2. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
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  4. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Effects of Immigration on Wages," NBER Working Papers 12497, National Bureau of Economic Research, Inc.
  5. Alberto Alesina & Arnaud Devleeschauwer & William Easterly & Sergio Kurlat & Romain Wacziarg, 2002. "Fractionalization," Harvard Institute of Economic Research Working Papers 1959, Harvard - Institute of Economic Research.
    • Alesina, Alberto & Devleeschauwer, Arnaud & Wacziarg, Romain & Kurlat, Sergio & Easterly, William, 2003. "Fractionalization," Scholarly Articles 4553003, Harvard University Department of Economics.
    • Wacziarg, Romain & Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio, 2002. "Fractionalization," Research Papers 1744, Stanford University, Graduate School of Business.
    • Alberto Alesina & Arnaud Devleeschauwer & William Easterly & Sergio Kurlat & Romain Wacziarg, 2003. "Fractionalization," NBER Working Papers 9411, National Bureau of Economic Research, Inc.
  6. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
  7. Buch, Claudia M. & Toubal, Farid, 2009. "Openness and growth: The long shadow of the Berlin Wall," Journal of Macroeconomics, Elsevier, Elsevier, vol. 31(3), pages 409-422, September.
  8. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  9. Lewer, Joshua J. & Van den Berg, Hendrik, 2008. "A gravity model of immigration," Economics Letters, Elsevier, Elsevier, vol. 99(1), pages 164-167, April.
  10. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
  11. Andrew K. Rose & Mark M. Spiegel, 2008. "International Financial Remoteness and Macroeconomic Volatility," NBER Working Papers 14336, National Bureau of Economic Research, Inc.
  12. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," NBER Working Papers 10568, National Bureau of Economic Research, Inc.
  13. Noguer, Marta & Siscart, Marc, 2005. "Trade raises income: a precise and robust result," Journal of International Economics, Elsevier, Elsevier, vol. 65(2), pages 447-460, March.
  14. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, American Economic Association, vol. 89(3), pages 379-399, June.
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Cited by:
  1. Letouzé, Emmanuel & Purser, Mark & Rodríguez, Francisco & Cummins, Matthew, 2009. "Revisiting the Migration-Development Nexus: A Gravity Model Approach," MPRA Paper 19227, University Library of Munich, Germany.
  2. Potrafke, Niklas, 2013. "Globalization and labor market institutions: International empirical evidence," Munich Reprints in Economics, University of Munich, Department of Economics 19288, University of Munich, Department of Economics.
  3. Heid, Benedikt & Larch, Mario, 2012. "Migration, trade and unemployment," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(4), pages 1-40.
  4. Stanislav Cernosa, 2011. "Openness to Trade, Migration and Foreign Direct Investments of the EU," WIFO Working Papers, WIFO 401, WIFO.
  5. Muysken, Joan & Ziesemer, Thomas, 2011. "The effect of net immigration on economic growth in an ageing economy: transitory and permanent shocks," MERIT Working Papers 055, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  6. Sanne Hiller, 2013. "Does immigrant employment matter for export sales? Evidence from Denmark," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 149(2), pages 369-394, June.
  7. Tesfaye A. Gebremedhin & Astghik Mavisakalyan, 2013. "Immigration and Political Instability," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 66(3), pages 317-341, 08.
  8. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2013. "Birthplace Diversity and Economic Prosperity," NBER Working Papers 18699, National Bureau of Economic Research, Inc.
  9. Okyay UCAN & F.Merve PARLAKYILDIZ & M.Basaran OZTURK, 2014. "An Empirical Test of Income Distribution and Migration Relationship: A Case of Turkey," Asian Economic and Financial Review, Asian Economic and Social Society, Asian Economic and Social Society, vol. 4(3), pages 355-360, March.
  10. Hiller, Sanne, 2011. "Does Immigrant Employment Matter for Exports? Evidence From Denmark," Working Papers 11-16, University of Aarhus, Aarhus School of Business, Department of Economics.
  11. Torben Schmidt & Peter Jensen, 2013. "Foreign labor and regional labor markets: aggregate and disaggregate impact on growth and wages in Danish regions," The Annals of Regional Science, Springer, Springer, vol. 50(3), pages 809-840, June.

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