The Labor Market Effects of Immigration and Emigration in OECD Countries
In this paper, we simulate the labor market effects of net immigration and emigration during the 1990's in all OECD countries. To accomplish this, we are the first to employ a comprehensive database of migrant stocks, grouped by education level and country of origin/destination, for the years 1990 and 2000. Due to the much higher international mobility of college graduates, relative to all other individuals, we find that net migration flows are college-intensive, relative to the population of non-migrants. Using the consensus aggregate model of labor demand and supply we simulate the long-run employment and wage effects of immigration and emigration. We use a range of parameter values spanning most of the estimates in the literature. In all cases we find that immigration had a positive effect on the wage of less educated natives. It also increased or left the average native wages unchanged and had a positive or no effect on native employment. To the contrary, emigration had a negative effect on the wage of less educated native workers and it contributed to increase within country inequality in all OECD countries. These results still hold true when we correct for the estimates of undocumented immigrants, for the skill-downgrading of immigrants, when we focus on immigration from non-OECD countries, and when we consider preliminary measures of more recent immigration flows for the period 2000-2007.
|Date of creation:||Dec 2011|
|Date of revision:|
|Publication status:||published in: Economic Journal, 2014, 124 (579), 1106-1145|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sari Pekkala Kerr & William R. Kerr, 2011.
"Economic Impacts of Immigration: A Survey,"
NBER Working Papers
16736, National Bureau of Economic Research, Inc.
- Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996.
"Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics,"
Journal of Economic Growth,
Springer, vol. 1(3), pages 363-89, September.
- Francesco Caselli & Gerardo Esquivel & Fernando Lefort, 1997. "Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Working Papers Central Bank of Chile 03, Central Bank of Chile.
- Grogger, Jeffrey & Hanson, Gordon H., 2011.
"Income maximization and the selection and sorting of international migrants,"
Journal of Development Economics,
Elsevier, vol. 95(1), pages 42-57, May.
- Jeffrey Grogger & Gordon H. Hanson, 2008. "Income Maximization and the Selection and Sorting of International Migrants," NBER Working Papers 13821, National Bureau of Economic Research, Inc.
- Mattoo, Aaditya & Neagu, Ileana Cristina & Ozden, Caglar, 2005.
"Brain waste? Educated immigrants in the U.S. labor market,"
Policy Research Working Paper Series
3581, The World Bank.
- Mattoo, Aaditya & Neagu, Ileana Cristina & Özden, Çaglar, 2008. "Brain waste? Educated immigrants in the US labor market," Journal of Development Economics, Elsevier, vol. 87(2), pages 255-269, October.
- Daniel Cohen & Marcelo Soto, 2001.
"Growth and Human Capital: Good Data, Good Results,"
OECD Development Centre Working Papers
179, OECD Publishing.
- Enrico Moretti, 2002.
"Estimating the Social Return to Higher Education: Evidence From Longitudinal and Repeated Cross-Sectional Data,"
NBER Working Papers
9108, National Bureau of Economic Research, Inc.
- Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
- Jess Benhabib & Mark M. Spiegel, 2002.
"Human capital and technology diffusion,"
Federal Reserve Bank of San Francisco, issue Nov.
- Docquier, Frédéric & Marfouk, Abdeslam & Özden, Caglar & Parsons, Christopher, 2011. "Geographic, Gender and Skill Structure of International Migration," MPRA Paper 47917, University Library of Munich, Germany.
- Rachel M. Friedberg, 2001. "The Impact of Mass Migration on the Israeli Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1373-1408.
- Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, issue 3, pages 363-407, July-Sept.
- Flood, Lennart & MaCurdy, Thomas, 1992. "Work disincentive effects of taxes: An empirical analysis of Swedish men," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 37(1), pages 239-277, December.
- Barro, Robert J. & Lee, Jong Wha, 2013.
"A new data set of educational attainment in the world, 1950–2010,"
Journal of Development Economics,
Elsevier, vol. 104(C), pages 184-198.
- Robert J. Barro & Jong-Wha Lee, 2010. "A New Data Set of Educational Attainment in the World, 1950-2010," NBER Working Papers 15902, National Bureau of Economic Research, Inc.
- Costas Azariadis & Allan Drazen, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 105(2), pages 501-526.
- Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
- Frédéric Docquier & B. Lindsay Lowell & Abdeslam Marfouk, 2009. "A Gendered Assessment of Highly Skilled Emigration," Population and Development Review, The Population Council, Inc., vol. 35(2), pages 297-321.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6258. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.