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Storm Clouds Ahead? Migration and Labor Force Participation Rates in Europe

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  • Benjamin Hilgenstock
  • Zsoka Koczan

Abstract

The paper examines the potential effects of international migration on labor force participation in advanced economies in Europe. It documents that migration played a significant role in alleviating aging pressures on labor supply by affecting the age composition of receiving countries’ populations. However, micro-level analysis also points to differences in average educational levels, as well as differences in the effects of any given level of education on participation across migrants and natives. Difficulties related to the recognition of educational qualifications appear to be associated with smaller effects of education on the odds of participation for migrants, especially women.

Suggested Citation

  • Benjamin Hilgenstock & Zsoka Koczan, 2018. "Storm Clouds Ahead? Migration and Labor Force Participation Rates in Europe," IMF Working Papers 2018/148, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2018/148
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    More about this item

    Keywords

    WP; migrant; Labor force participation; aging; migration; migration scenario; participation decision; integration policy; policy stance; age effect; net migration; way migrant; age composition effect; Europe;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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