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

30 Pages Posted: 18 Jul 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: July 18, 2013

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: immigration, growth, unemployment, panel VAR

JEL Classification: E200, F220, J610

Suggested Citation

Boubtane, Ekrame and Coulibaly, Dramane and Rault, Christophe, Immigration, Growth and Unemployment: Panel VAR Evidence from OECD Countries (July 18, 2013). CESifo Working Paper Series No. 4329, Available at SSRN: https://ssrn.com/abstract=2295373

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 (Contact Author)

University of Orleans ( email )

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

IZA Institute of Labor Economics

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

CESifo (Center for Economic Studies and Ifo Institute)

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Munich, DE-81679
Germany

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