CEPII, Recherche et Expertise sur l'economie mondiale
The Impact of Immigration on the Employment Dynamics of European Regions


Anthony Edo
Cem Özgüzel

 Highlights :
  • This paper provides the first evidence on the regional impact of immigration on native employment in a cross-country framework.
  • 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.

 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.


 Keywords : Immigration | Employment | Labour Supply | Employment Dynamics

 JEL : F22, J21, J61
CEPII Working Paper
N°2023-20, September 2023

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 Fields of expertise

Migrations
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