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The Effects of Immigration on Regional Unemployment Rates in The Netherlands

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  • Rebecca Galloway
  • James Jozefowicz

Abstract

The impact of immigration on the change in the unemployment rate in the Netherlands is analyzed using panel data from 26 labor market regions from 1996 through 2003. This study measures immigration through the year-to-year change in the foreign population, paying particular attention to immigrants of non-Western origin. Other variables controlling the composition of the local labor market include: occupation shares, the fractions of workers employed in high- and low-skilled jobs, the fractions of female workers, part-time employees, labor force participants over the age of 55, educational attainment shares, and population density. The ordinary least squares (OLS) results indicate a change in the foreign population in the labor force led to a statistically significant increase in the upward volatility of Dutch unemployment rates while the change in the non-Western share had no significant effect. Copyright International Atlantic Economic Society 2008

Suggested Citation

  • Rebecca Galloway & James Jozefowicz, 2008. "The Effects of Immigration on Regional Unemployment Rates in The Netherlands," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(3), pages 291-302, August.
    • Handle: RePEc:kap:iaecre:v:14:y:2008:i:3:p:291-302:10.1007/s11294-008-9157-8
    DOI: 10.1007/s11294-008-9157-8
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    References listed on IDEAS

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    1. Daron Acemoglu, 2003. "Cross-Country Inequality Trends," Economic Journal, Royal Economic Society, vol. 113(485), pages 121-149, February.
    2. Hans Roodenburg & Rob Euwals & Harry ter Rele, 2003. "Immigration and the Dutch economy," CPB Special Publication 47, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Rudolf Winter-Ebmer & Josef Zweimüller, 1999. "Do immigrants displace young native workers: The Austrian experience," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(2), pages 327-340.
    4. van Ours, Jan C. & Veenman, Justus, 1999. "The Netherlands: Old Emigrants - Young Immigrant Country," IZA Discussion Papers 80, Institute of Labor Economics (IZA).
    5. Bas Jacobs, 2004. "The Lost Race between Schooling and Technology," De Economist, Springer, vol. 152(1), pages 47-78, March.
    6. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November.
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    Cited by:

    1. Herrera Gómez, Marcos, 2010. "Causalidad Espacial. Enfoque No Paramétrico [Spatial Causality. Non-Parametric Approach]," MPRA Paper 61326, University Library of Munich, Germany.

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    More about this item

    Keywords

    Immigration; Unemployment; The Netherlands; E24; J21; J61; J82; R10; R23;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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