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Immigration and Economic Growth in the OECD Countries, 1986-2006

Author

Listed:
  • Boubtane, Ekrame

    (CERDI, Université Clermont Auvergne)

  • Dumont, Jean-Christophe

    (OECD)

  • Rault, Christophe

    (University of Orléans)

Abstract

This paper offers a reappraisal of the impact of migration on economic growth for 22 OECD countries between 1986-2006 and relies on a unique data set we compiled that allows us to distinguish net migration of the native-born and foreign-born by skill level. Specifically, after introducing migration in an augmented Solow-Swan model, we estimate a dynamic panel model using a system of generalized method of moments (SYS-GMM) to deal with the risk of an endogeneity bias of the migration variables. Two important findings emerge from our analysis. First, there exists a positive impact of migrants' human capital on economic growth. And second, the contribution of immigrants to human capital accumulation tends to dominate the mechanical dilution effect while the net effect is fairly small. This conclusion holds even in countries with highly selective migration policies.

Suggested Citation

  • Boubtane, Ekrame & Dumont, Jean-Christophe & Rault, Christophe, 2014. "Immigration and Economic Growth in the OECD Countries, 1986-2006," IZA Discussion Papers 8681, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8681
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    More about this item

    Keywords

    immigration; growth; human capital; generalized methods of moments;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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