Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/210107
Authors: 
Furlanetto, Francesco
Robstad, Ørjan
Year of Publication: 
2016
Series/Report no.: 
Working Paper 18/2016
Abstract: 
We propose a new VAR identification scheme that enables us to disentangle immigration shocks from other macroeconomic shocks. Identification is achieved by imposing sign restrictions on Norwegian data over the period 1990Q1 - 2014Q2. The availability of a quarterly series for net immigration is crucial to achieving identification. Notably, immigration is an endogenous variable in the model and can respond to the state of the economy. We find that domestic labor supply shocks and immigration shocks are well identified and are the dominant drivers of immigration dynamics. An exogenous immigration shock lowers unemployment (even among native workers), has a positive effect on prices and on public finances in the medium run, no impact on house prices and household credit, and a negative effect on productivity.
Subjects: 
VAR
labor supply shocks
immigration shocks
job-related immigration
identification
JEL: 
C11
C32
E32
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-944-9
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/deed.no
Document Type: 
Working Paper
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