1211. Does Immigration Grow the Pie? Asymmetric Evidence from Germany
- Author:
- Eugenia Vella
- Publication Date:
- 01-2021
- Content Type:
- Policy Brief
- Institution:
- Hellenic Foundation for European and Foreign Policy (ELIAMEP)
- Abstract:
- This Policy brief by Eugenia Vella, Postdoctoral Research Fellow, elected to the position of Assistant Professor, Athens University of Economics and Business; Research Fellow, ELIAMEP and Fundació MOVE provides empirical evidence suggesting that net migration flows can have substantial demand effects. Using monthly administrative data (2006-2019) for Germany, we show that migration stimulates job openings, wages, house prices, investment, consumption, net exports, and output. Unemployment falls for natives (job-creation effect), driving a decline in total unemployment, while rising for foreigners (job-competition effect). The geographic origin of migrants and the education level of residents matter crucially for the effects. Overall, the evidence implies that the policy debate should focus on redistributive strategies between natives and foreigners.
- Topic:
- Migration, Immigration, Employment, and Economic Growth
- Political Geography:
- Europe and Germany