Impact of Migration on Income Levels in Advanced Economies

Spillover Notes, October 24, 2016

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Impact of Migration on Income Levels in Advanced Economies

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Bibliographic details

• Authors: Florence Jaumotte, Ksenia Koloskova, Sweta Chaman Saxena
• Published: October 24, 2016
• Series: Spillover Notes
• DOI: https://doi.org/10.5089/9781475545913.062

Overview

• Authors: Florence Jaumotte, Ksenia Koloskova, Sweta Chaman Saxena
• Date: October 24, 2016
• Focus: Long-term impact of immigration on GDP per capita (standard of living) in advanced economies, distributional effects across the earnings distribution, and role of migrant skill levels.

Contributions and approach

• Uses a restricted sample of advanced economies rather than a mixed sample of higher- and lower-income host countries.
• Examines whether the GDP per capita impact varies for different skill levels of migrants (high-skilled and lower-skilled).
• Extends analysis beyond aggregate GDP per capita to assess how broadly gains are shared across the population, specifically whether impacts occur at both the top and bottom of the earnings distribution.

Key findings

• Immigration significantly increases GDP per capita in advanced economies.
• Both high- and lower-skilled migrants can raise labor productivity.
• An increase in the migrant share benefits the average income per capita of both:
  • the bottom 90 percent of earners, and
  • the top 10 percent of earners,

suggesting the gains from immigration are broadly shared.

Subject tags and keywords

• Subject: Aging, Labor productivity, Migration, National accounts, Personal income, Population and demographics, Production
• Keywords: Aging, Europe, fcd7bf, gravity-predicted migration, labor market, Labor productivity, least squares, migrant, Migration, migration cost, migration effect, migration share, Personal income, real GDP, SN