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Does Immigration Boost Per Capita Income?

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Abstract

Using a cross-section of countries, we adapt Frankel and Romer's (1999) IV strategy to international labor mobility. Controlling for institutional quality, trade, and financial openness, we establish a robust and non-negative causal effect of immigration on real percapita income.

Suggested Citation

  • Gabriel J Felbermayr & Sanne Hiller & Davide Sala, 2008. "Does Immigration Boost Per Capita Income?," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 300/2008, Department of Economics, University of Hohenheim, Germany.
    • Handle: RePEc:hoh:hohdip:300
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    File URL: http://www.uni-hohenheim.de/RePEc/hoh/papers/300.pdf
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    1. Buch, Claudia M. & Toubal, Farid, 2009. "Openness and growth: The long shadow of the Berlin Wall," Journal of Macroeconomics, Elsevier, vol. 31(3), pages 409-422, September.
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    3. Gianmarco I. P. Ottaviano & Giovanni Peri, 2021. "Rethinking The Effect Of Immigration On Wages," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 9, pages 245-290, World Scientific Publishing Co. Pte. Ltd..
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    8. Gabriel Felbermayr & Wilhelm Kohler, 2014. "Can International Migration Ever Be Made a Pareto Improvement?," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 11, pages 373-393, World Scientific Publishing Co. Pte. Ltd..
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    13. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Gravity model; international trade; international migration; cross-country income regression;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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