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The economic impact of migration: productivity analysis for Spain and the UK

Kangasniemi, Mari, Mas, Matilde, Robinson, Catherine, Serrano, Lorenzo (2012) The economic impact of migration: productivity analysis for Spain and the UK. Journal of Productivity Analysis, 38 (3). pp. 333-343. ISSN 0895-562X. (doi:10.1007/s11123-012-0280-4) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.1007/s11123-012-0280-4

Abstract

Over the past 20 years labour has become increasingly mobile and whilst employment and earnings effects in host countries have been extensively analysed, the implications for firm and industry performance have received far less attention. This paper explores the direct economic consequences of immigration on host nations’ productivity performance at a sectoral level in two very different European countries, Spain and the UK. Whilst the UK has traditionally seen substantial immigration, for Spain the phenomenon is much more recent. Our findings from a growth accounting analysis show that migration has made a negative contribution to labour productivity growth in Spain and a negative but negligible contribution in the UK. This difference is driven by a positive impact from migrant labour quality in the UK. This finding broadly holds across all sectors, but we note considerable variation in magnitudes. Labour productivity growth has a neutral contribution from migrant labour in construction and personal services in the UK, whilst in every case in Spain the effect is negative, most strongly in agriculture. Using an econometric approach to production function estimation we observe a positive long term effect on total factor productivity from migrant workers in the UK and a negative effect in Spain. Our findings suggest that either the UK is better at assimilating migrants or is more selective in terms of who is permitted to migrate.

Item Type: Article
DOI/Identification number: 10.1007/s11123-012-0280-4
Uncontrolled keywords: Migration, Productivity, Growth accounting, Production function
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > Kent Business School > International Business and Strategy
Depositing User: Tracey Pemble
Date Deposited: 09 Apr 2014 14:33 UTC
Last Modified: 06 Feb 2020 04:09 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/39136 (The current URI for this page, for reference purposes)
Robinson, Catherine: https://orcid.org/0000-0001-8861-4880
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