Labor Market Effects of Demographic Shifts and Migration in OECD Countries

56 Pages Posted: 18 Dec 2018 Last revised: 25 Dec 2018

See all articles by Frédéric Docquier

Frédéric Docquier

Luxembourg Institute of Socio-Economic Research (LISER); Université catholique de Louvain; CREAM, Centre for Research on Environmental Appraisal & Management, UK; IZA Institute of Labor Economics

Zovanga Louis Kone

World Bank Group

Aaditya Mattoo

World Bank - Development Research Group (DECRG)

Caglar Ozden

World Bank

Date Written: December 17, 2018

Abstract

The labor force of each industrial country is being shaped by three forces: ageing, education and migration. Drawing on a new database for the OECD countries and a standard analytical framework, this paper focuses on the relative and aggregate effects of these three forces on wages across different skill and age groups over 2000 to 2010. The variation in the age and educational structure of the labor force emerges as the dominant influence on wage changes. The impact is uniform and egalitarian: in almost all countries, the changes in the age and skill structure favor the low-skilled and hurt the highly skilled across age groups. Immigration plays a relatively minor role, except in a handful of open countries, like Australia and Canada, where it accentuates the wage-equalizing impact of ageing and education. Emigration is the only inegalitarian influence, especially in Ireland and a few Eastern European countries which have seen significant outflows of high-skilled labor to Western European Union countries.

Keywords: Human Migrations & Resettlements, International Migration, Educational Sciences, Migration and Development, Indigenous Communities, Indigenous Peoples Law, Indigenous Peoples, Adolescent Health

Suggested Citation

Docquier, Frédéric and Kone, Zovanga Louis and Mattoo, Aaditya and Ozden, Caglar, Labor Market Effects of Demographic Shifts and Migration in OECD Countries (December 17, 2018). World Bank Policy Research Working Paper No. 8676, Available at SSRN: https://ssrn.com/abstract=3302952

Frédéric Docquier (Contact Author)

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

11, Porte des Sciences
Campus Belval – Maison des Sciences Humaines
Esch-sur-Alzette, L-4366
Luxembourg

Université catholique de Louvain ( email )

IRES
Place Montesquieu 3
Louvain-la-Neuve, 1348
Belgium

HOME PAGE: http://https://perso.uclouvain.be/frederic.docquier/

CREAM, Centre for Research on Environmental Appraisal & Management, UK

University of Newcastle
NE1 7RU Newcastle Upon Tyne
United States

IZA Institute of Labor Economics

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

Zovanga Louis Kone

World Bank Group ( email )

10 Marina Boulevard
Marina Bay Financial Center, Tower 2, #34-02
Singapore, DC 018983
Singapore

Aaditya Mattoo

World Bank - Development Research Group (DECRG) ( email )

1818 H Street, N.W.
Room MC 3-327
Washington, DC 20433
United States
202-458-8047 (Phone)
202-676-9810 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/amattoo

Caglar Ozden

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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