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Skilled Migration and Economic Performances: evidence from OECD countries

Listed author(s):
  • Gianluca OREFICE

    (University of Milano and Centro Studi Luca DÂ’Agliano)

This paper investigates the effects of immigration flows and their skill content on per capita GDP in 24 OECD host countries. Theoretical models concludes that the effect of immigrants in host country's income depends on the capital content of migrants (Benhabib 1996); empirically the question is still open and this paper contributes to make light on this. So we propose an empirical estimation on the effects of immigrants and their skill level on per capita GDP. Using a IV model to solve the endogeneity problem we found that high skilled migration has a positive effect on per capita GDP, but it is not enough to fully compensate the overall negative effects of migration on per capita GDP.

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File URL: http://sites.uclouvain.be/econ/DP/IRES/2010015.pdf
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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2010015.

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Length: 38
Date of creation: 14 Apr 2010
Handle: RePEc:ctl:louvir:2010015
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  1. Barro, R.J. & Sala-i-Martin, X., 1991. "Regional Growth and Migration: a Japan - U.S. Comparaison," Papers 650, Yale - Economic Growth Center.
  2. David Card, 1997. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," NBER Working Papers 5927, National Bureau of Economic Research, Inc.
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  4. Barro, Robert T. & Sala-I-Martin, Xavier, 1992. "Regional growth and migration: A Japan-United States comparison," Journal of the Japanese and International Economies, Elsevier, vol. 6(4), pages 312-346, December.
  5. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
  6. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," North American Stata Users' Group Meetings 2003 05, Stata Users Group.
  7. Chad Sparber, 2010. "Racial Diversity and Macroeconomic Productivity across US States and Cities," Regional Studies, Taylor & Francis Journals, vol. 44(1), pages 71-85.
  8. Felbermayr, Gabriel J. & Hiller, Sanne & Sala, Davide, 2010. "Does immigration boost per capita income?," Economics Letters, Elsevier, vol. 107(2), pages 177-179, May.
  9. Kemnitz, Alexander, 2001. "Endogenous growth and the gains from immigration," Economics Letters, Elsevier, vol. 72(2), pages 215-218, August.
  10. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  11. Mariya Aleksynska & Ahmed Tritah, 2009. "Immigration, Income and Productivity of Host Countries: a Channel Accounting Approach," Working Papers 2009-23, CEPII research center.
  12. KH Zhang, 2001. "Does Foreign Direct Investment Promote Economic Growth? Evidence From East Asia And Latin America," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 175-185, 04.
  13. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1335-1374.
  14. Patricia Cortes, 2008. "The Effect of Low-Skilled Immigration on U.S. Prices: Evidence from CPI Data," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 381-422, 06.
  15. David Card, 2005. "Is the New Immigration Really so Bad?," Economic Journal, Royal Economic Society, vol. 115(507), pages 300-323, November.
  16. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
  17. L.R. de Mello Jr., 1996. "Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data," Studies in Economics 9615, School of Economics, University of Kent.
  18. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
  19. Francesc Ortega & Giovanni Peri, 2009. "The Causes and Effects of International Migrations: Evidence from OECD Countries 1980-2005," Working Papers 96, University of California, Davis, Department of Economics.
  20. Rachel M. Friedberg & J. Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Working Papers 95-5, Brown University, Department of Economics.
  21. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
  22. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
  23. Jonathan Chaloff & Georges Lemaître, 2009. "Managing Highly-Skilled Labour Migration: A Comparative Analysis of Migration Policies and Challenges in OECD Countries," OECD Social, Employment and Migration Working Papers 79, OECD Publishing.
  24. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
  25. Bellini, Elena & Ottaviano, Gianmarco I. P. & Pinelli, Dino & Prarolo, Giovanni, 2008. "Cultural diversity and economic performance: Evidence from European regions," HWWI Research Papers 3-14, Hamburg Institute of International Economics (HWWI).
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