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The Unemployment Impact of Immigration in OECD Countries

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Author Info
Sébastien Jean
Miguel Jimenez ()

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Abstract

This paper assesses the consequences of immigration for natives' unemployment in OECD countries and investigates the role played by product and labour market policies in the economy's adjustment to immigration inflows. The estimations, combining a skill-level and an aggregate approach using data for males, cover eighteen OECD countries over the period 1984-2003. While no significant long-run impact is found, an increase in the share of immigrants in the labour force is estimated to raise temporarily natives' unemployment, over a period of approximately five to ten years. Anticompetitive product market regulations are found to increase both the magnitude and the persistence of this impact, while more stringent employment protection legislation magnifies its persistence, and a higher average replacement rate of unemployment benefits increases its magnitude.

L'impact de l'immigration sur le chômage dans les pays de l'OCDE
Ce document de travail évalue les conséquences de l'immigration pour le chômage des autochtones dans les pays de l'OCDE, en s’intéressant particulièrement au rôle joué par les politiques sur les marchés des produits et du travail. Les estimations, combinant une approche par catégorie de qualification et une approche agrégée sur la base de données pour les hommes, couvrent dix-huit pays de l'OCDE sur la période 1984-2003. Aucun impact permanent significatif de la part des immigrés dans la population active sur le niveau de chômage parmi les autochtones n'est trouvé, mais une augmentation de cette part accroît temporairement le chômage des autochtones, pour une période de cinq à dix ans. Les régulations anticoncurrentielles sur le marché des produits augmentent l’ampleur et la persistance de cet impact, une législation plus stricte de protection de l’emploi accroît sa persistance, et un taux de remplacement moyen des allocations chômage plus élevé augmente son ampleur.

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 563.

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Date of creation: 04 Jul 2007
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Handle: RePEc:oec:ecoaaa:563-en

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Related research
Keywords: unemployment chômage product market regulation labour market policies politique du marché du travail réglementation des marchés de produits immigration immigration

Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation

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  1. Longhi, Simonetta & Nijkamp, Peter & Poot, Jacques, 2008. "Meta-Analysis of Empirical Evidence on the Labour Market Impacts of Immigration," IZA Discussion Papers 3418, Institute for the Study of Labor (IZA). [Downloadable!]
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