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The Impact of Immigration on the Employment Dynamics of European Regions

Author

Listed:
  • Anthony Edo
  • Cem Özgüzel
Abstract
This paper provides the first evidence on the regional impact of immigration on native employment in a cross-country framework. We show that the rise in the share of immigrants across European regions over the 2010-2019 period had a modest impact on the employment-to-population rate of natives. However, the effects are highly uneven across regions and workers, and over time. First, the short-run estimates show adverse employment effects in response to immigration, while these effects disappear in the longer run. Second, low-educated native workers experience employment losses due to immigration, whereas high-educated ones are more likely to experience employment gains. Third, the presence of institutions that provide employment protection and high coverage of collective wage agreements exert a protective effect on native employment. Finally, economically dynamic regions can better absorb immigrant workers, resulting in little or no effect on the native workforce.

Suggested Citation

  • Anthony Edo & Cem Özgüzel, 2023. "The Impact of Immigration on the Employment Dynamics of European Regions," Working Papers 2023-20, CEPII research center.
    • Handle: RePEc:cii:cepidt:2023-20
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    More about this item

    Keywords

    Immigration; Employment; Labour Supply; Employment Dynamics;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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