This paper provides cross-country macro evidence on the effect of immigration on productivity. It combines panel data with instrumental variables to correct for OLS biases due to reverse causality. In particular, it introduces push-targeting instruments; they constitute a new approach to find dynamic instruments based on gravity equations that are suitable to be used in panel data settings with fixed effects. Another methodological contribution is the aggregation of instruments as a solution to the lack of bilateral migration data. Results suggest a negative impact of immigration on productivity that is partially offset by a positive effect on participation and employment.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by CEMFI in its series Working Papers with number
wp2008_0802.
Find related papers by JEL classification: F22 - International Economics - - International Factor Movements and International Business - - - International Migration O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers