Regional Economic Impacts of Immigration: A Review
AbstractA burgeoning literature has emerged during the last two decades to assess the economic impacts of immigration on host countries. In recent years much research has been at the national level under the assumption that impacts in open regions may dissipate through adjustment processes such as factor mobility. However, this is ultimately an empirical issue. In this paper we revisit the impacts of immigration at the regional level. We briefly review analytical approaches for identifying regional economic impacts, specifically the labour market impact. A meta-analytic approach is adopted. As a novel contribution to existing meta-analyses on labour market impacts, we use a simultaneous equations approach to the meta-analysis of wage and employment effects. The number of studies that informs on both effects is rather limited, but eight econometric analyses yielded 130 useful meta-observations. We find that wage rigidity increases the magnitude of the employment impact on the native born, particularly of those who are low skilled, following positive net immigration. The employment elasticity is also greater in Europe than in the United States. However, observed employment elasticities are not informative about whether larger or smaller wage effects may be expected.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 09-047/3.
Date of creation: 19 Jun 2009
Date of revision: 23 Jul 2009
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international migration; regional labour market; meta-analysis; impact analysis; regional growth;
Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-03 (All new papers)
- NEP-GEO-2009-07-03 (Economic Geography)
- NEP-LAB-2009-07-03 (Labour Economics)
- NEP-MIG-2009-07-03 (Economics of Human Migration)
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- Giovanni Russo & Federico Tedeschi & Aura Reggiani & Peter Nijkamp, 2011. "Commuter Effects on Local Labour Markets: A German Modelling Study," Tinbergen Institute Discussion Papers 11-114/3, Tinbergen Institute.
- Giovanni Russo & Peter Nijkamp & Aura Reggiani & Federico Tedeschi, 2011. "Commuters' effect on local labour markets: A german case study," ERSA conference papers ersa10p1376, European Regional Science Association.
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