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The Economic Effects of Immigration

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초록

Two contrasting arguments exist regarding the relationship between immigration and its economic effects. One argues that immigration has a positive benefit to national economy by promoting population growth, averting population aging, and filling undesirable jobs, while others argue that immigration has a negative effect by displacing native workers and increasing burdens on welfare system in a host country. While the existing studies utilized cross-sectional analysis of multiple countries or time-series analysis within in a country, in this article, we have tested the competing hypothesis by utilizing a pooled data set from OECD’s immigration data. We have found that immigration has positive impact on national economy measured by per capita GDP. And this result may be attributed to several factors. Immigrant workers may fill industry gaps and lower production cost by providing cheap labor. Immigrants may serve as a flexible labor reserve and partially compensate for the low geographical or functional mobility of the native born population. Also, the analysis indicates that socio-political conditions have played important roles in promoting the national economy. More favorable socio-political conditions to immigrants have led to positive effects on the national economy. The implication is that immigrants that are quickly able to assimilate and integrate are more likely to become contributors and less likely to be a burden to government resources and the economy.

Abstract

Two contrasting arguments exist regarding the relationship between immigration and its economic effects. One argues that immigration has a positive benefit to national economy by promoting population growth, averting population aging, and filling undesirable jobs, while others argue that immigration has a negative effect by displacing native workers and increasing burdens on welfare system in a host country. While the existing studies utilized cross-sectional analysis of multiple countries or time-series analysis within in a country, in this article, we have tested the competing hypothesis by utilizing a pooled data set from OECD’s immigration data. We have found that immigration has positive impact on national economy measured by per capita GDP. And this result may be attributed to several factors. Immigrant workers may fill industry gaps and lower production cost by providing cheap labor. Immigrants may serve as a flexible labor reserve and partially compensate for the low geographical or functional mobility of the native born population. Also, the analysis indicates that socio-political conditions have played important roles in promoting the national economy. More favorable socio-political conditions to immigrants have led to positive effects on the national economy. The implication is that immigrants that are quickly able to assimilate and integrate are more likely to become contributors and less likely to be a burden to government resources and the economy.

참고문헌 (74)

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