Please use this identifier to cite or link to this item:
https://hdl.handle.net/2440/107551
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Type: | Journal article |
Title: | Migration, trade and unemployment |
Author: | Heid, B. Larch, M. |
Citation: | Economics, 2012; 6(2012-4):1-41 |
Publisher: | Kiel Institute for the World Economy |
Issue Date: | 2012 |
ISSN: | 1864-6042 1864-6042 |
Statement of Responsibility: | Benedikt Heid, Mario Larch |
Abstract: | A source of anxiety of policy makers and the public in general is the detrimental impact of trade 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 controlling for the high correlation between immigration and goods flows in order to prevent an omitted variable bias. The authors 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 no significant effect of immigration on unemployment on average. |
Keywords: | Migration; unemployment; international trade; fixed effects instrumental variable panel estimators; dynamic panel estimators |
Rights: | © Author(s) 2012. Licensed under a Creative Commons License - Attribution-NonCommercial 2.0 Germany |
DOI: | 10.5018/economics-ejournal.ja.2012-4 |
Published version: | http://dx.doi.org/10.5018/economics-ejournal.ja.2012-4 |
Appears in Collections: | Aurora harvest 3 Economics publications |
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hdl_107551.pdf | Published Version | 553.36 kB | Adobe PDF | View/Open |
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