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Immigration, Growth, and Unemployment: Panel VAR Evidence from OECD Countries
Author(s) -
Boubtane Ekrame,
Coulibaly Dramane,
Rault Christophe
Publication year - 2013
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/labr.12017
Subject(s) - endogeneity , economics , unemployment , panel data , per capita , vector autoregression , immigration , prosperity , panel analysis , demographic economics , labour economics , monetary economics , econometrics , macroeconomics , economic growth , population , geography , demography , archaeology , sociology
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).