Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/52228
Authors: 
Heid, Benedikt
Larch, Mario
Year of Publication: 
2011
Series/Report no.: 
Economics Discussion Papers 2011-45
Abstract: 
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.
Subjects: 
migration
unemployment
international trade
fixed effects instrumental variable panel estimators
dynamic panel estimators
JEL: 
C23
C26
F15
F16
F22
Creative Commons License: 
http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
Document Type: 
Working Paper

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