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The long run impact of immigration on labor market in an advanced economy

Author

Listed:
  • Faridul Islam
  • Saleheen Khan

Abstract

Purpose - – The purpose of this paper is to examine the dynamic relationship among immigration rate, GDP per capita, and and real wage rates in the USA. Design/methodology/approach - – The paper implements the Johansen-Juselius (1990, 1992) cointegration technique to test for a long-run relationship; and for short-run dynamics the authors apply Granger causality tests under the vector error-correction model. Findings - – The results show that the long-run causality runs from GDP per capita to immigration, not vice versa. Growing economy attracts immigrants. The authors also find that immigration flow depresses average weekly earnings of the natives in the long-run. Originality/value - – The authors are not aware of any study on the USA addressing the impact of immigrants on labor market using a tripartite approach by explicitly incorporating economic growth. It is therefore important to pursue a theoretically justified empirical model in search of a relation to resolve on apparent immigration debate.

Suggested Citation

  • Faridul Islam & Saleheen Khan, 2015. "The long run impact of immigration on labor market in an advanced economy," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 42(4), pages 356-367, April.
    • Handle: RePEc:eme:ijsepp:v:42:y:2015:i:4:p:356-367
    DOI: 10.1108/IJSE-12-2013-0291
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    Citations

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    Cited by:

    1. Alexandra M. Espinosa & Ignacio Díaz-Emparanza, 2023. "Assessing the Spanish immigration policy with frequency-wise causality in Hosoya’s sense," Empirical Economics, Springer, vol. 65(1), pages 111-147, July.
    2. Grace Carolina Guevara-Rosero & Andrea Gabriela Bonilla-Bolaños, 2021. "Non-pecuniary Effects of Migration Inflows to Ecuador: Is Residents’ Life Satisfaction Affected?," Journal of International Migration and Integration, Springer, vol. 22(4), pages 1243-1270, December.
    3. Khalid M. Kisswani & Saleheen Khan, 2023. "Immigration and GDP nexus: is the association asymmetric?," Economic Change and Restructuring, Springer, vol. 56(1), pages 215-236, February.

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