Immigration and Economic Growth in the OECD Countries 1986-2006

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 flows has a positive effect on GDP per worker. Moreover, the growth impact of immigration is high even in countries that have non-selective migration policies.
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Ekrame Boubtane, Jean-Christophe Dumont, Christophe Rault. Immigration and Economic Growth in the OECD Countries 1986-2006. 2016. ⟨halshs-01252406⟩

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