The Impact of Immigration on Productivity

Joan Llull

Working Papers from CEMFI

Abstract: This paper provides cross-country macro evidence on the effect of immigration on productivity. It combines panel data with instrumental variables to correct for OLS biases due to reverse causality. In particular, it introduces push-targeting instruments; they constitute a new approach to find dynamic instruments based on gravity equations that are suitable to be used in panel data settings with fixed effects. Another methodological contribution is the aggregation of instruments as a solution to the lack of bilateral migration data. Results suggest a negative impact of immigration on productivity that is partially offset by a positive effect on participation and employment.

Date: 2008-02
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Persistent link: https://EconPapers.repec.org/RePEc:cmf:wpaper:wp2008_0802

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