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

22 Pages Posted: 7 Nov 2013

See all articles by Ekrame Boubtane

Ekrame Boubtane

Paris School of Economics

Dramane Coulibaly

Université Paris X Nanterre; Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Christophe Rault

University of Orleans; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: December 2013

Abstract

This paper examines empirically the interaction between immigration and host country economic conditions. We employ panel vector autoregression (VAR) techniques for a large annual data set on 22 OECD countries over the period 1987–2009. The VAR approach addresses the endogeneity problem by allowing for endogenous interactions 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).

JEL Classification: E20, F22, J61

Suggested Citation

Boubtane, Ekrame and Coulibaly, Dramane and Coulibaly, Dramane and Rault, Christophe and Rault, Christophe, Immigration, Growth, and Unemployment: Panel VAR Evidence from OECD Countries (December 2013). LABOUR, Vol. 27, Issue 4, pp. 399-420, 2013, Available at SSRN: https://ssrn.com/abstract=2351063 or http://dx.doi.org/10.1111/labr.12017

Ekrame Boubtane

Paris School of Economics ( email )

48 boulevard Jourdan
Paris, 75014
France

HOME PAGE: http://https://www.parisschoolofeconomics.eu/fr/boubtane-ekrame-cerdi/

Dramane Coulibaly

Université Paris X Nanterre ( email )

92, av. de la République, Nanterre
Room G301, Building G
Paris, Nanterre Cedex 92001
France

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

France

Christophe Rault

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

University of Orleans ( email )

Rue de Blois
BP 6739
LEO, Orleans, Orleans cedex 2 45067
France

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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