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The unemployment impact of immigration in OECD countries

Author

Listed:
  • Sébastien S. Jean

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

  • Miguel M. Jiménez

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 adjustment of the economy 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 in any case, we find that immigration may have a temporary impact on natives' unemployment, depending upon the policy framework. In particular, a temporary increase in unemployment may be observed in a context of stringent anti-competitive product market regulation, or of high replacement rates of unemployment benefits.

Suggested Citation

  • Sébastien S. Jean & Miguel M. Jiménez, 2011. "The unemployment impact of immigration in OECD countries," Post-Print hal-01000444, HAL.
    • Handle: RePEc:hal:journl:hal-01000444
    DOI: 10.1016/j.ejpoleco.2010.11.006
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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation

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