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

Author Info

  • Boubtane, Ekrame

    ()

    (University Paris 1)

  • 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).

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6966.

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Length: 30 pages
Date of creation: Oct 2012
Date of revision:
Publication status: published in: Labour, 2013, 27 (4), 399-420
Handle: RePEc:iza:izadps:dp6966
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Keywords: immigration; growth; unemployment; panel VAR;

Other versions of this item:

Find related papers by 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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Cited by:

  1. Boubtane, Ekrame & Dumont, Jean-Christophe & Rault, Christophe, 2014. "Immigration and Economic Growth in the OECD Countries, 1986-2006," IZA Discussion Papers 8681, Institute for the Study of Labor (IZA).
  2. Canova, Fabio & Ciccarelli, Matteo, 2013. "Panel vector autoregressive models: a survey," Working Paper Series 1507, European Central Bank.
  3. Stacie Beck & Soodong Park, 2014. "How Fiscal Policies Reduce Labor Force Participation In Open Economies: Evidence On Tax Competition And Compensation Hypotheses," Working Papers 14-16, University of Delaware, Department of Economics.

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