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The Impact of Ireland's Recession on the Labour Market Outcomes of its Immigrants

Author

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  • Barrett, Alan

    () (ESRI, Dublin)

  • Kelly, Elish

    () (Economic and Social Research Institute, Dublin)

Abstract

In the mid 2000s Ireland experienced a large inflow of immigrants, partly in response to strong economic growth but also in response to its decision to allow full access to its labour market when EU expansion occurred in May 2004. Between 2004 and 2007, the proportion of non-nationals living in Ireland almost doubled, increasing from 7.7 to 13.1 percent. Between 2008 and 2009, Ireland experienced one of the most acute downturns in economic activity in the industrialised world, with a cumulative fall in Gross National Product of close to 14 percent. In this paper, we assess how this downturn has impacted upon the employment outcomes of non-nationals relative to natives. We find huge job losses among immigrants, with an annual rate of job loss of close to 20 percent in 2009, compared to 7 percent for natives. A higher rate of job loss for immigrants is found to remain when we control for factors such as age and education. We also show how an outflow of non-nationals is occurring. The findings have many implications. In particular, the results point to economic vulnerability for immigrants. However, they also point to a potential macroeconomic benefit to Ireland in terms of a flexible labour supply adjustment.

Suggested Citation

  • Barrett, Alan & Kelly, Elish, 2010. "The Impact of Ireland's Recession on the Labour Market Outcomes of its Immigrants," IZA Discussion Papers 5218, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5218
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    References listed on IDEAS

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    1. Katrine V. Løken & Magne Mogstad & Matthew Wiswall, 2012. "What Linear Estimators Miss: The Effects of Family Income on Child Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 1-35, April.
    2. Julio Cáceres-Delpiano, 2006. "The Impacts of Family Size on Investment in Child Quality," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
    3. Philip Oreopoulos & Marianne Page & Ann Huff Stevens, 2008. "The Intergenerational Effects of Worker Displacement," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 455-483, July.
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    Cited by:

    1. repec:oup:ereveh:v:20:y:2016:i:3:p:299-321. is not listed on IDEAS
    2. Lunn, Pete, 2012. "The Impact of Recession on Migration: A Preliminary Analysis of Census 2011," Research Notes RN2012/2/3, Economic and Social Research Institute (ESRI).
    3. repec:esr:resser:bkmnext176 is not listed on IDEAS
    4. Quinn, Emma & Gusciute, Egle & Barrett, Alan & Joyce, Corona, 2014. "Migrant Access to Social Security and Healthcare: Policies and Practice in Ireland," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT261.
    5. Zaiceva, Anzelika & Zimmermann, Klaus F., 2012. "Returning Home at Times of Trouble? Return Migration of EU Enlargement Migrants during the Crisis," IZA Discussion Papers 7111, Institute for the Study of Labor (IZA).
    6. Barrett, Alan & Bergin, Adele & Kelly, Elish & McGuinness, Seamus, 2014. "Ireland's Recession and the Immigrant/Native Earnings Gap," IZA Discussion Papers 8459, Institute for the Study of Labor (IZA).
    7. Philip J. O’Connell & Corona Joyce, 2013. "International Migration in Ireland, 2012," Working Papers 201304, Geary Institute, University College Dublin.
    8. McGinnity, Fran & Russell, Helen & Watson, Dorothy & Kingston, Gillian & Kelly, Elish, 2014. "Winners and Losers? The Equality Impact of the Great Recession in Ireland," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT265.
    9. Bergin, Adele & Kelly, Elish & McGuinness, Seamus, 2014. "Changes in Labour Market Transitions in Ireland over the Great Recession," Papers WP485, Economic and Social Research Institute (ESRI).
    10. Joyce, Corona, 2011. "Annual Policy Report on Migration and Asylum 2010: Ireland (December 2011)," Research Series, Economic and Social Research Institute (ESRI), number sustat38a.
    11. repec:esr:resser:bkmnext183 is not listed on IDEAS
    12. Kris Inwood & Chris Minns & Fraser Summerfield, 2016. "Reverse assimilation? Immigrants in the Canadian labour market during the Great Depression," European Review of Economic History, Oxford University Press, pages 299-321.

    More about this item

    Keywords

    recession; immigration; Ireland;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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