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Refugee Immigration and Total Factor Productivity

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  • Dierk Herzer

Abstract

This paper uses panel cointegration and causality techniques to examine the long-run relationship between refuge immigration and total factor productivity (TFP), a relationship that has not yet been examined in the literature. It is found that refugee immigration has, on average, a positive long-run effect on TFP, suggesting that refuge immigration increases the diversity of skills and ideas available to society as a whole, which in turn promotes specialization and innovation. It is also found that causality is unidirectional from refugee immigration to TFP, suggesting that refugees are primarily motivated by the push factor of persecution in the source country rather than by productivity (and hence welfare) gains as a potential pull factor in the destination country.

Suggested Citation

  • Dierk Herzer, 2017. "Refugee Immigration and Total Factor Productivity," International Economic Journal, Taylor & Francis Journals, vol. 31(3), pages 390-414, July.
    • Handle: RePEc:taf:intecj:v:31:y:2017:i:3:p:390-414
    DOI: 10.1080/10168737.2017.1330356
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    2. Thomas Gries & Margarete Redlin & Moonum Zehra, 2022. "Educational Assimilation of First-Generation and Second-Generation Immigrants in Germany," Journal of International Migration and Integration, Springer, vol. 23(2), pages 815-845, June.

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