Immigration and economic growth in the OECD countries 1986-2006: A panel data analysis
AbstractThis paper presents a reappraisal of the impact of migration on economic growth for 22 OECD countries between 1986 and 2006. It is based on a unique dataset that enables to distinguish net migration of the native-born and foreign-born by skill level. Migration is introduced in an augmented Solow-Swan model and the results are obtained using a GMM estimation, in order to deal with the potential endogeneity of the migration variables. In this framework, we identify a positive impact of the human capital brought by migrants on economic growth. The contribution of immigrants to the human capital accumulation tends to dominate the mechanical dilution effect, but the net effect is fairly small, including in countries which have highly selective migration policies.
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Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 13013.
Length: 28 pages
Date of creation: Feb 2013
Date of revision:
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International migration; human capital; economic growth; generalized methods of moments.;
Other versions of this item:
- Ekrame Boubtane & Jean-Christophe Dumont, 2013. "Immigration and economic growth in the OECD countries 1986-2006: A panel data analysis," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00800617, HAL.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-16 (All new papers)
- NEP-FDG-2013-03-16 (Financial Development & Growth)
- NEP-MIG-2013-03-16 (Economics of Human Migration)
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- Muysken, Joan & Ziesemer, Thomas, 2011. "The effect of net immigration on economic growth in an ageing economy: transitory and permanent shocks," UNU-MERIT Working Paper Series 055, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
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