The Changing Structure of Immigration to the OECD: What Welfare Effects on Member Countries?

Burzyński, Michał; Docquier, Frédéric; Rapoport, Hillel

doi:10.1057/s41308-018-0059-3

Cited by 7 publications

(9 citation statements)

References 47 publications

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“…endogenous firms' creation and number of varieties available to consumers). This finding is in line with the quantitative findings of di Giovanni et al (2015), Aubry et al (2016), andBurzy ński et al (2018), and with the recent empirical results of Beerli et al (2021).…”

Section: Introductionsupporting

confidence: 92%

“…Others endogenize labor supply decisions while disregarding involuntary unemployment (e.g. Aubry et al, 2016;Docquier et al, 2010;Storesletten, 2000), or treating it as exogenous (Burzy ński et al, 2018;Docquier et al, 2014). Finally, some studies endogenize unemployment responses as the outcome of a search-and-matching process instead of relying on a competitive wage determination framework (e.g.…”

Section: Introductionmentioning

confidence: 99%

“…Depending on how reactive these adjustment variables are, they will transmit their effect through further mechanisms: for example, the fiscal impact of immigration reacts to unemployment payments and labor income taxes, whereas the market size and price responses are determined by the changes in the aggregate demand of goods and services and in the national wage bill. Recent studies include unemployment (Battisti et al, 2018;Chassamboulli & Palivos, 2014) or labor market participation rates (Burzy ński et al, 2018) as adjustment variables. To the best of our knowledge and surprisingly enough, our benchmark encompassing model is the first one to combine the wage, participation and unemployment margins of adjustment into a unified general equilibrium framework for the analysis of immigration shocks, and to interact them with other mechanisms of transmission.…”

Section: Introductionmentioning

confidence: 99%

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Immigration, welfare, and inequality: How much does the labor market specification matter?

Docquier

Ikhenaode

Scheewel

2022

Rev International Economics

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General equilibrium models are frequently used to estimate the effect of immigration on welfare and inequality in the host country. Existing studies differ in the way they formalize the labor market implications for natives, which in turn govern the strength of the other transmission mechanisms. To assess the extent to which the choice of the labor market specification influences the findings, we build an encompassing model that distinguishes between broad classes of individuals. We calibrate it for 20 selected OECD member states, and compare several specifications involving different assumptions on labor supply decisions, unemployment rates, and wage formation, as well as different calibration strategies. The size and the sign of the average welfare and distributional effects of immigration are robust to the labor market specification. Endogenizing unemployment and participation rates leads to slightly better welfare and distributional effects in most OECD countries but overall, adding margins of labor market adjustment barely affects the findings of models based on simpler assumptions.

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Section: Introductionsupporting

confidence: 92%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Immigration, welfare, and inequality: How much does the labor market specification matter?

Docquier

Ikhenaode

Scheewel

2022

Rev International Economics

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“…We account for the difference in employment rates between groups by introducing heterogeneity in the preference parameters in the utility functions in equation ( 9). Labor force data reveal that differences in employment rates are mainly governed by differences in participation rates (Burzynski et al, 2018). This motivates our choice to endogenize participation rates and disregard involuntary unemployment.…”

Section: Alternative Labor Market Structuresmentioning

confidence: 99%

Labor market effects of demographic shifts and migration in OECD countries

Docquier

Kone

Mattoo

et al. 2019

European Economic Review

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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 the years 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.

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“…The latest wave of immigration in the post-crisis period (2010-2015) is unlike previous waves in terms of skill and origin structure. Burzynski, Docquier, & Rapoport (2018) have shown that the welfare effects of immigration are very heterogeneous across skill groups, countries of destination, and immigration waves. For instance, the latest wave period of immigration is less skilled and brings fewer benefits.…”

Section: Introductionmentioning

confidence: 99%

The Role of Regional Differences in Immigration: The Case of OECD Countries

Máté¹,

Sarihasan²,

Popp³

et al. 2018

Economics &Amp; Sociology

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Despite physical, cultural, economic and other obstacles, millions of people have recently emigrated from one country to another in search of a better life. Consequently, the importance of this research topic has grown over time. Analysis of this regional approach is based on the OECD censuses, and its unique Database on Immigrants (DIOC), which makes it possible to generate a wide variety of cross-tabulations on the characteristics of asylum-seekers by the country of their birth. The aim of this study is to contribute to literature by analysing the role of regional differences in migration more closely in terms of the importance of migration regulation policies in the OECD countries. According to the results based on Binary Logistic (Logit) and Linear (OLS) Regression models, the educational attainment, age, sex and the place of birth of migrants are related in different ways to their region of origin. Moreover, male migrants are more skilled than females, migrants who are more educated are older than the less skilled, and foreign-born migrants seemed to be older than native-born migrants. There is also additional evidence suggesting that different regions and countries might follow different policies and norms for admission of migrants. Therefore, forthcoming migration governance programs that aim to facilitate the labour market integration of migrants should also take into consideration their regional characteristics.

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The Changing Structure of Immigration to the OECD: What Welfare Effects on Member Countries?

Cited by 7 publications

References 47 publications

Immigration, welfare, and inequality: How much does the labor market specification matter?

Immigration, welfare, and inequality: How much does the labor market specification matter?

Labor market effects of demographic shifts and migration in OECD countries

The Role of Regional Differences in Immigration: The Case of OECD Countries

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