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

Author

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  • Boubtane, Ekrame

    () (CERDI, University of Auvergne)

  • Coulibaly, Dramane

    () (CEPII, Paris)

  • Rault, Christophe

    () (University of Orléans)

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, native- and 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

  • Boubtane, Ekrame & Coulibaly, Dramane & Rault, Christophe, 2012. "Immigration, Growth and Unemployment: Panel VAR Evidence from OECD Countries," IZA Discussion Papers 6966, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6966
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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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