Immigration and Economic Growth in the OECD Countries 1986-2006

35 Pages Posted: 24 Jun 2015  

Ekrame Boubtane

University Paris-Est Créteil (UPEC)

Jean-Christophe Dumont

Organization for Economic Co-Operation and Development (OECD) - Division of non-Member Economies and International Migration

Christophe Rault

University of Orleans; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: June 23, 2015

Abstract

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- and foreign-born populations 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 address the risk of endogeneity bias in the migration variables. Two important findings emerge from our analysis. First, there exists a positive impact of migrants’ human capital on GDP per capita, and second, a permanent increase in migration ows has a positive effect on productivity growth. However, the growth impact of immigration is small even in countries that have highly selective migration policies.

Keywords: immigration, growth, human capital, generalized methods of moments

JEL Classification: C230, F220, J240, J610, O410, O470

Suggested Citation

Boubtane, Ekrame and Dumont, Jean-Christophe and Rault, Christophe, Immigration and Economic Growth in the OECD Countries 1986-2006 (June 23, 2015). CESifo Working Paper Series No. 5392. Available at SSRN: https://ssrn.com/abstract=2622005

Ekrame Boubtane

University Paris-Est Créteil (UPEC) ( email )

House of Economic Sciences
106 - 112 boulevard de L'Hopital
Paris cedex 13, 75647
France

Jean-Christophe Dumont

Organization for Economic Co-Operation and Development (OECD) - Division of non-Member Economies and International Migration ( email )

Paris
France

Christophe Rault (Contact Author)

University of Orleans

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)

Poschinger Str. 5
Munich, DE-81679
Germany

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