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Immigration, Growth and Unemployment: Panel VAR Evidence from OECD Countries

Author

Listed:
  • Ekrame Boubtane

    () (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Dramane Coulibaly

    (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Christophe Rault

    (LEO - Laboratoire d'économie d'Orleans - UO - Université d'Orléans - Université de Tours - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper examines empirically the interaction between immigration and host country economic conditions. We employ panel VAR techniques to use a large annual dataset on 22 OECD countries over the period 1987-2009. The VAR approach allows to addresses the endogeneity problem by allowing the endogenous interaction between the variables in the system. Our results provide evidence of migration contribution to host economic prosperity (positive impact on GDP per capita and negative impact on aggregate unemployment, nativeand foreign-born unemployment rates). We also find that migration is influenced by host economic conditions (migration responds positively to host GDP per capita and negatively to host total unemployment rate).

Suggested Citation

  • Ekrame Boubtane & Dramane Coulibaly & Christophe Rault, 2013. "Immigration, Growth and Unemployment: Panel VAR Evidence from OECD Countries," Post-Print halshs-00914412, HAL.
  • Handle: RePEc:hal:journl:halshs-00914412
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00914412
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    More about this item

    Keywords

    immigration; growth; Unemployment; panel VAR;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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