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Immigration and unemployment in Europe: does the core-periphery dualism matter?

Author

Listed:
  • Esposito, Piero
  • Collignon, Stefan
  • Scicchitano, Sergio

Abstract

In this paper, we assess the impact of immigration and unemployment for a sample of 15 EU countries between 1997 and 2016. We test for the existence of a core-periphery dualism based on differences in macroeconomic fundamentals and labour market characteristics. We use a Panel Error Correction Model to assess the direction and persistence of the impact of immigration on domestic unemployment in the short and in the long run. In the long run, immigration is found to reduce unemployment in all peripheral-countries. In core countries, we find no long-run impact of immigration on unemployment due to substantial heterogeneity. As for short-run dynamics, we find a confirmation of the result that immigration reduces unemployment for the whole sample. Based on differences in employment protection and activity rates, larger impacts are found for Scandinavian and Anglo-Saxon countries, while lower and less significant impacts are found for Italy, Greece and Portugal.

Suggested Citation

  • Esposito, Piero & Collignon, Stefan & Scicchitano, Sergio, 2019. "Immigration and unemployment in Europe: does the core-periphery dualism matter?," GLO Discussion Paper Series 310, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:310
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    References listed on IDEAS

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    6. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters,in: The Economics of International Migration, chapter 3, pages 81-115 World Scientific Publishing Co. Pte. Ltd..
    7. Ottaviano, Gianmarco & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers 6916, C.E.P.R. Discussion Papers.
    8. D'Amuri, Francesco & Ottaviano, Gianmarco I.P. & Peri, Giovanni, 2010. "The labor market impact of immigration in Western Germany in the 1990s," European Economic Review, Elsevier, vol. 54(4), pages 550-570, May.
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    More about this item

    Keywords

    International Migration; Unemployment; European Union; Panel Data;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • 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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