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The Effects of Immigration in Developed Countries: Insights from Recent Economic Research

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  • Anthony Edo
  • Lionel Ragot
  • Hillel Rapoport
  • Sulin Sardoschau
  • Andreas Steinmayr

Abstract

Immigrants currently account for 3.3% of the world’s population. We know that migration is demographically important, but what are its implications for the labour market, public finance and political landscape? To answer these questions, this report draws on recent literature on the economic and cultural effects of immigration on host societies, with a focus on evidence for European countries. Although the average effects of immigration on labour markets and public finance are marginal, immigration can create winners and losers in the native workforce. By affecting the skill composition of receiving economies, an immigration-induced increase in the labour supply can impact wage dispersion in host countries. It is cultural concerns, however, that tend to fuel scepticism towards immigration, with fiscal or labour market playing only a secondary role. A deeper understanding of these concerns is a precondition for designing policies that foster a positive atmosphere and combat negative attitudes towards immigrants and extreme voting.

Suggested Citation

  • Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," EconPol Policy Reports 5, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:econpr:_5
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    3. Hager, Anselm & Valasek, Justin, 2020. "Refugees and social capital: Evidence from Northern Lebanon," Discussion Papers, Research Unit: Economics of Change SP II 2020-301, WZB Berlin Social Science Center.
    4. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.
    5. Anthony Edo & Yvonne Giesing, 2020. "Has Immigration Contributed to the Rise of Rightwing Extremist Parties in Europe?," EconPol Policy Reports 23, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    6. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.

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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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