Arbeitspapier

Migration, trade and unemployment

A source of anxiety of policy makers and the public in general is the detrimental impact of globalization and immigration on unemployment. The transitory restrictions for worker migration after the EU enlargements of 2004 and 2007 exemplify the supposed negative effect of immigration on labor markets. This paper aims to identify the effects of immigration alongside trade on unemployment taking into account the substitutability of worker and goods flows. We use data from 24 OECD countries over the period from 1997 to 2007 and employ instrumental variables fixed effects and dynamic panel estimators in order to account for unobserved heterogeneity as well as the potential endogeneity of migration flows and the high persistence of unemployment. We find a significant negative effect of immigration on unemployment on average.

Sprache
Englisch

Erschienen in
Series: Economics Discussion Papers ; No. 2011-45

Klassifikation
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Single Equation Models: Single Variables: Instrumental Variables (IV) Estimation
Economic Integration
Trade and Labor Market Interactions
International Migration
Thema
migration
unemployment
international trade
fixed effects instrumental variable panel estimators
dynamic panel estimators

Ereignis
Geistige Schöpfung
(wer)
Heid, Benedikt
Larch, Mario
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2011

Handle
Letzte Aktualisierung
20.09.2024, 08:22 MESZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Heid, Benedikt
  • Larch, Mario
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2011

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