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

Author

Listed:
  • Ekrame Boubtane
  • Dramane Coulibaly
  • Christophe Rault
Abstract
This paper examines empirically the interaction between immigration and host country economic conditions. We employ panel VAR techniques to use a large annual dataset on 22 OECD countries over the period 1987-2009. The VAR approach allows to addresses the endogeneity problem by allowing the endogenous interaction 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).

Suggested Citation

  • Ekrame Boubtane & Dramane Coulibaly & Christophe Rault, 2013. "Immigration, Growth and Unemployment: Panel VAR Evidence from OECD Countries," CESifo Working Paper Series 4329, CESifo.
    • Handle: RePEc:ces:ceswps:_4329
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    References listed on IDEAS

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    More about this item

    Keywords

    immigration; growth; unemployment; panel VAR;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • 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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