- Open Access
Skilled migration and economic performances: Evidence from OECD countries
Swiss Journal of Economics and Statistics volume 146, pages 781–820 (2010)
This paper investigates the effects of immigration flows and their human capital content on per capita GDP variation in 24 OECD host countries. Theoretical models concludes that the effect of immigrants in host country’s income depends on the human capital content of migrants (Benhabib, 1996); empirically the question is still open and this paper contributes to make light on this. So we propose an empirical estimation on the effects of immigrants and their human capital content on per capita GDP variation. Using a IV model to solve the endogeneity problem we found that high human capital content by immigrants has a positive effect on per capita GDP variation, but it is not enough to fully compensate the overall negative effects of migration on changes in per capita output.
Aydemir, Abdurrahman, and George J. Borjas (2007), “A Comparative Analysis of the Labor Market Impact of International Migration: Canada, Mexico and the United States”,Journal of the European Economic Association, 5, pp. 663–708.
Altonji, Joseph, and David Card (2001), “The Effects of Immigration on the Labor Market Outcomes of Less-Skilled Natives”, in: Abowd J. and R. Freeman (ed.), Immigration Trade and The Labor Market, Chicago, University of Chicago Press.
Barro, Robert, and Xavier Sala-I-Martin (1992), “Regional Growth and Migration: A Japan-United States Comparison”, Journal of the International and Japanese Economies, 6, pp. 312–346.
Baum, Christopher, Mark E. Schaffer and Steven Stillman (2003), “Instrumental Variables and GMM: Estimation and Testing”, Stata Journal, 3, pp. 1–31.
Beine, Michel, Frederic Docquier and Caglar Ozden (2009), “Diasporas”, Discussion paper, CESifo Working Paper no. 2607.
Bellini, Elena, Gianmarco I. P. Ottaviano, Dino Pinelli and Giovanni Prarolo (2009), “Cultural Diversity and Economic Performance: Evidence from European Regions”, Working Paper, Fondazione Enrico Mattei.
Benhabib, Jess (1996), “On the Political Economy of Immigration”, European Economic Review, 40, pp. 1737–1743.
Berthelemy, Jean-Claude, Monica Beuran and Mathilde Maurel (2009), “Aid and Migration: Substitutes or Complements?”, World Development, forthcoming.
Borensztein, Eduardo, Jose de Gregorio and Jong-Wha. Lee (1998), “How Does Foreign Direct Investment Affect Economic Growth?”, Journal of International Economics, 45, pp. 115–135.
Borjas, George (1995), “The Economic Benefits from Immigration”, Journal of Economics Perspectives, vol. 9, n. 2.
Borjas, George (2003), “The Labor Demand Curve is Downward Sloping: Re-examining the Impact of Immigration on the Labor Market”, Quarterly Journal of Economics, 118, pp. 1335–1374.
Borjas, George (2006), “The Impact of Immigration on the Labor Market”, paper prepared for the IMF conference in Labor and Capital in Europe following enlargement.
Borjas, George, and Lawrence Katz (2007), “The Evolution of the Mexican-Born Workforce in the United States”, in: George Borjas (ed.), Mexican Immigration to the United States, NBER conference report.
Borjas, George, Jeffrey Groggger and Gordon H. Hanson (2008), “Imperfect Substitution between Immigrants and Native: a Reappraisal”, NBER working paper n. 13887.
Cameron, Colin, and Pravin K. Trivedi (2009), Microeconometrics Using Stata, ed. Stata Press Publication.
Card, David (2001), “Immigrants Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration”, Journal of Labor Economics, 19, pp. 22–64.
Card, David (2005), “Is the New Immigration Really So Bad?”, The Economic Journal, 115.
Chaloff, Jonathan, and George Lemaitre (2009), “Managing Highly Skilled Labour Migration: A Comparative Analysis of Migration Policies and Challenges in OECD Countries”, Working Paper, OECD.
Cortes, Patricia (2008), “The Effects of Low Skilled Immigration on US Prices: Evidence from CPI Data”, Journal of Political Economy, 116 (3).
De Mello, Luiz R. (1999), “Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data”, Oxford Economic Paper, 51, pp. 133–151.
Docquier, Frederic, Lindsay B. Lowell and Abdeslam Marfouk (2007), “A Gendered Assessment of the Brain Drain”, IZA discussion paper n. 3235.
Dolado, Juan, Alessandra Goria and Andrea Ichino (1994), “Immigration, Human Capital and Growth in the Host Country, Evidence from Pooled Country Data”, Journal of Population Economics, 7, pp. 193–215.
Felbermayr, Gabriel, Sanne Hiller and David E. Sala (2010), “Does Immigration Boost per Capita Income?”, Economics Letters, 107 (2), pages pp. 177–179.
Friedberg, Rachel M., and Jennifer Hunt (1995), “The Impact of Immigrants on Host Country Wages, Employment and Growth”, Journal of Economics Perspectives, 9 (2).
Friedberg, Rachel M. (2000), “You Can’t Take It with You? Immigrant Assimilation and the Portability of Human Capital”, Journal of Labor Economics, 18 (2).
Frankel, Jeffrey A., and David Romer (1999), “Does Trade Cause Growth?”, The American Economic Review, 89 (3), pp. 379–399.
Hanson, Gordon H. (2008), “The Economic Consequence of International Migration of Labor”, NBER working paper no. 14490.
Kemnitz, Alexander (2001), “Endogenous Growth and the Gains from Immigration”, Economics Letters, 72, pp. 215–218.
Mankiw, Gregory, David Romer and David Weil (1992), “A Contribution to the Empirics of Economic Growth”, Quarterly Journal of Economics, vol. 107, pp. 407–437.
Mayda, Anna Maria (2008), “International Migration: A Panel Data Analysis of the Determinants of Bilateral Flows”, Journal of Population Economics, forthcoming.
Mariya, Aleksynska, and Ahmed Tritah (2009), “Immigration, Income and Productivity of Host Countries: A Channel Accounting Approach”, CEPII document de travail.
Michaely, Michael (1977), “Exports and Growth: An Empirical Investigation.”, Journal of Development Economics, 4 (1), pp. 49–53.
Ortega, Francisco, and Giovanni Peri (2009), “The Causes and Effects of International Migration: Evidence from OECD Countries 1980–2005”, NBER working paper 14833.
Ottaviano, Gianmarco I., and Giovanni Peri (2008), “Immigration and National Wages: Clarifying the Theory and Empirics”, CEPR discussion paper 6916.
Zhang, Kevin H. (2001), “Does Foreign Direct Investment Promote Economic Growth? Evidence from East Asia and Latin America”, Contemporary Economic Policy, 19, pp. 175–185.
Sparber, Chad (2010), “Racial Diversity and Macroeconomic Productivity across US States and Cities”, Regional Studies, 44 (1).
I would like to thank G. Barba Navaretti, F. Docquier, T. Frattini, G. Peri, W. Pariente and V. Verardi for helpful comments and suggestions. I also thank participants at the Second Italian Doctoral Workshop in Economics and Policy Analysis (Turin 2–3 July 2009) and participants at the SSES annual meeting, Univeristy of Fribourg 24–25 June 2010. All errors are mine.
About this article
Cite this article
Orefice, G. Skilled migration and economic performances: Evidence from OECD countries. Swiss J Economics Statistics 146, 781–820 (2010). https://doi.org/10.1007/BF03399337
- international migration
- economic performances
- factor mobility