## Storm Clouds Ahead? Migration and Labor Force Participation Rates in Europe

_IMF Working Papers, June 21, 2018_

## Source details

**Canonical URL:** [Storm Clouds Ahead? Migration and Labor Force Participation Rates in Europe](https://www.imf.org/en/publications/wp/issues/2018/06/22/storm-clouds-ahead-migration-and-labor-force-participation-rates-in-europe-46013)

## Other formats

- [Markdown version](/en/publications/wp/issues/2018/06/22/storm-clouds-ahead-migration-and-labor-force-participation-rates-in-europe-46013/index.md)
- [Structured JSON version](/en/publications/wp/issues/2018/06/22/storm-clouds-ahead-migration-and-labor-force-participation-rates-in-europe-46013/index.json)
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## Bibliographic details
- Authors: Benjamin Hilgenstock, Zsoka Koczan
- Published: June 21, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484363058.001

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### Summary
- The paper examines the potential effects of international migration on labor force participation in advanced economies in Europe.
- Migration played a significant role in alleviating aging pressures on labor supply by affecting the age composition of receiving countries’ populations.
- Micro-level analysis documents differences in average educational levels between migrants and natives, and differences in the effects of any given level of education on participation across migrants and natives.
- Difficulties related to the recognition of educational qualifications appear to be associated with smaller effects of education on the odds of participation for migrants, especially women.

### Key Findings
- Migration alters the age composition of receiving countries’ populations and thus has a significant role in alleviating aging pressures on labor supply.
- Average educational levels differ between migrants and natives.
- The effect of a given level of education on labor force participation differs between migrants and natives.
- Recognition issues for educational qualifications are associated with smaller effects of education on the odds of participation for migrants, with a pronounced effect for migrant women.

### Themes from Micro-level Analysis
- Education and participation:
  - Differences in average educational levels across migrants and natives are documented.
  - The marginal effect of education on participation varies by migrant status and gender.
- Qualification recognition:
  - Difficulties related to recognition of educational qualifications are linked to reduced effectiveness of education in increasing participation for migrants, especially women.

### Policy-relevant Points
- The documented association between recognition difficulties and smaller education effects on participation for migrants highlights an area for policy attention (integration policy is listed among subjects/keywords).
- Migration’s role in changing age composition suggests that migration is an important factor for labor supply dynamics amid aging populations.

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## Content in this bundle

- **Storm Clouds Ahead? Migration and Labor Force Participation Rates in Europe, WP/18/148, June 2018**
  - [Storm Clouds Ahead? Migration and Labor Force Participation Rates in Europe, WP/18/148, June 2018 (Markdown version)](/-/media/files/publications/wp/2018/wp18148.pdf.md){rel="alternate" type="text/markdown"}
  - [Storm Clouds Ahead? Migration and Labor Force Participation Rates in Europe, WP/18/148, June 2018 (PDF)](/-/media/files/publications/wp/2018/wp18148.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2018/06/22/storm-clouds-ahead-migration-and-labor-force-participation-rates-in-europe-46013_