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

30 Pages Posted: 3 Nov 2012  

Ekrame Boubtane

Université d'Auvergne - Clermont 1 - Centre d'Etudes et de Recherches sur le Developpement International (CERDI)

Dramane Coulibaly

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

Christophe Rault

University of Orleans; Université d'Évry - Centre D'Etudes des Politiques Economiques et de L'Emploi (EPEE); Université Paris I Panthéon-Sorbonne - Equipe Universitaire de Recherche en Economie Quantitative (EUREQUA); IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

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).

Keywords: unemployment, growth, immigration, panel VAR

JEL Classification: E20, F22, J61

Suggested Citation

Boubtane, Ekrame and Coulibaly, Dramane and Rault, Christophe, Immigration, Growth and Unemployment: Panel VAR Evidence from OECD Countries. IZA Discussion Paper No. 6966. Available at SSRN: https://ssrn.com/abstract=2170654

Ekrame Boubtane (Contact Author)

Université d'Auvergne - Clermont 1 - Centre d'Etudes et de Recherches sur le Developpement International (CERDI) ( email )

65 Boulevard Francois Mitterrand
63000 Clermont-Ferrand Cedex 1
France

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

University of Orleans

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

Université d'Évry - Centre D'Etudes des Politiques Economiques et de L'Emploi (EPEE) ( email )

Department of Economics
91025 EVRY Cedex
France
+ 33 (0)1 69 47 70 36 (Phone)
+ 33 (0)2 43 04 22 06 (Fax)

Université Paris I Panthéon-Sorbonne - Equipe Universitaire de Recherche en Economie Quantitative (EUREQUA) ( email )

106-112 Boulevard de l'Hopital
Paris Cedex 13, 75647
France

HOME PAGE: http://www.multimania.com/chrault/

IZA Institute of Labor Economics

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

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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