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Migration and labour markets in OECD countries: a panel cointegration approach

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  • O. Damette
  • V. Fromentin

Abstract

This article examines the interaction between immigration and the host labour market of 14 Organization for Economic Co-operation and Development (OECD) countries using nonstationary panel data methodology. We estimate a trivariate Vector Error Correction Model (VECM) and derive causality tests to simultaneously assess the long- and short-term macroeconomic impact of newcomers on wages and unemployment levels in the host country. The results suggest that an increase of migrants is likely to increase wages in the destination countries in the short run but to increase them in the long run. There is no evidence of adverse effects on unemployment due to immigration in short and long-term except for Anglo-Saxon countries in the short term. Our findings also show that immigration is conditioned by levels of unemployment and wages especially in Anglo-Saxon countries.

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File URL: http://hdl.handle.net/10.1080/00036846.2012.661400
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 45 (2013)
Issue (Month): 16 (June)
Pages: 2295-2304

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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2295-2304

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Cited by:
  1. d'Albis, Hippolyte & Boubtane, Ekrame & Coulibaly, Dramane, 2013. "Immigration Policy and Macroeconomic Performances in France," MPRA Paper 50749, University Library of Munich, Germany.
  2. Ekrame Boubtane & Dramane Coulibaly & Christophe Rault, 2013. "Immigration, growth and unemployment: Panel VAR evidence from OECD countries," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00800608, HAL.
  3. Ekrame BOUBTANE & Dramane COULIBALY & C. Rault, 2013. "Immigration, growth and unemployment: Panel VAR evidence from OECD countries," Working Papers halshs-00827002, HAL.
  4. Komivi Afawubo & Vincent Fromentin, 2013. "Financial development and economic growth: the case of ECOWAS and WAEMU," Economics Bulletin, AccessEcon, vol. 33(3), pages 1715-1722.
  5. Cebula, Richard & Clark, Jeff, 2014. "Impact of Economic Freedom, Regulatory Quality, and Taxation on the Per Capita Real Income: An Analysis for OECD Nations and Non-G8 OECD Nations," MPRA Paper 56605, University Library of Munich, Germany.
  6. Vincent Fromentin, 2013. "The Relationship Between Immigration and Unemployment: The Case of France," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 43(1), pages 51-66, March.
  7. Vincent Fromentin, 2012. "Migration and unemployment duration in OECD countries: A dynamic panel analysis," CREA Discussion Paper Series 12-02, Center for Research in Economic Analysis, University of Luxembourg.

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