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Regional Economic Impacts of Immigration: A Review

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  • Simonetta Longhi

    (Institute for Social and Economic Research, University of Essex, Colchester, UK)

  • Peter Nijkamp

    (VU University Amsterdam)

  • Jacques Poot

    (Population Studies Centre, University of Waikato)

Abstract

A burgeoning literature has emerged during the last two decades to assess the economic impacts of immigration on host countries. In recent years much research has been at the national level under the assumption that impacts in open regions may dissipate through adjustment processes such as factor mobility. However, this is ultimately an empirical issue. In this paper we revisit the impacts of immigration at the regional level. We briefly review analytical approaches for identifying regional economic impacts, specifically the labour market impact. A meta-analytic approach is adopted. As a novel contribution to existing meta-analyses on labour market impacts, we use a simultaneous equations approach to the meta-analysis of wage and employment effects. The number of studies that informs on both effects is rather limited, but eight econometric analyses yielded 130 useful meta-observations. We find that wage rigidity increases the magnitude of the employment impact on the native born, particularly of those who are low skilled, following positive net immigration. The employment elasticity is also greater in Europe than in the United States. However, observed employment elasticities are not informative about whether larger or smaller wage effects may be expected.

Suggested Citation

  • Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2009. "Regional Economic Impacts of Immigration: A Review," Tinbergen Institute Discussion Papers 09-047/3, Tinbergen Institute, revised 23 Jul 2009.
  • Handle: RePEc:tin:wpaper:20090047
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    3. Luisa Alamá-Sabater & Maite Alguacil & Joan Serafí Bernat-Martí, 2014. "Location determinants of migrant inflows: The Spanish case?," Working Papers 2014/07, Economics Department, Universitat Jaume I, Castellón (Spain).
    4. Ugo Fratesi, 2012. "A globalization-based taxonomy of European regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 4(1), pages 1-23, March.
    5. Harald Oberhofer & Christian Glocker & Werner Hölzl & Peter Huber & Serguei Kaniovski & Klaus Nowotny & Michael Pfaffermayr & Monique Ebell & Nikolaos Kontogiannis, 2016. "Single Market Transmission Mechanisms Before, During and After the 2008-09 Crisis. A Quantitative Assessment," WIFO Studies, WIFO, number 59156.
    6. Giovanni Russo & Federico Tedeschi & Aura Reggiani & Peter Nijkamp, 2014. "Commuter Effects on Local Labour Markets: A German Modelling Study," Urban Studies, Urban Studies Journal Limited, vol. 51(3), pages 493-508, February.

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    More about this item

    Keywords

    international migration; regional labour market; meta-analysis; impact analysis; regional growth;
    All these keywords.

    JEL classification:

    • 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
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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