Arbeitspapier

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

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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 8681

Classification
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
International Migration
Human Capital; Skills; Occupational Choice; Labor Productivity
Geographic Labor Mobility; Immigrant Workers
One, Two, and Multisector Growth Models
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Subject
immigration
growth
human capital
generalized methods of moments

Event
Geistige Schöpfung
(who)
Boubtane, Ekrame
Dumont, Jean-Christophe
Rault, Christophe
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2014

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Boubtane, Ekrame
  • Dumont, Jean-Christophe
  • Rault, Christophe
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2014

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