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The Impact of Immigration on Productivity

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  • Joan Llull

    (CEMFI, Centro de Estudios Monetarios y Financieros)

Abstract

This paper provides cross-country macro evidence on the effect of immigration on productivity. It combines panel data with instrumental variables to correct for OLS biases due to reverse causality. In particular, it introduces push-targeting instruments; they constitute a new approach to find dynamic instruments based on gravity equations that are suitable to be used in panel data settings with fixed effects. Another methodological contribution is the aggregation of instruments as a solution to the lack of bilateral migration data. Results suggest a negative impact of immigration on productivity that is partially offset by a positive effect on participation and employment.

Suggested Citation

  • Joan Llull, 2008. "The Impact of Immigration on Productivity," Working Papers wp2008_0802, CEMFI.
    • Handle: RePEc:cmf:wpaper:wp2008_0802
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    Cited by:

    1. Nathan, Max, 2013. "The Wider Economic Impacts of High-Skilled Migrants: A Survey of the Literature," IZA Discussion Papers 7653, Institute of Labor Economics (IZA).
    2. Joan Llull, 2021. "Immigration and Gender Differences in the Labor Market," Journal of Human Capital, University of Chicago Press, vol. 15(1), pages 174-203.
    3. Max Nathan, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
    4. Dr Max Nathan, 2013. "The wider economic impacts of high-skilled migrants: a survey of the literature," National Institute of Economic and Social Research (NIESR) Discussion Papers 413, National Institute of Economic and Social Research.

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