Dynamic Macroeconomic Implications of Immigration

Conny Olovsson, Karl Walentin and Andreas Westermark

No 405, Working Paper Series from Sveriges Riksbank (Central Bank of Sweden)

Abstract: International immigration flows are large, volatile and increasing. To our knowledge, we are the first to document the dynamic implications of immigration in a search and matching framework. To quantify these effects in general equilibrium, we use Swedish population registry data and productivity estimates from a matched employer-employee dataset. A refugee (economic) immigration shock yields large initial negative (positive) effects on GDP per capita and employment rates, substantially larger than corresponding steady state effects, in line with the microdata. To alleviate the consequences of a refugee shock, policies affecting structural unemployment are important, e.g., benefit cuts and improved integration.

Keywords: Immigration; refugees; dynamics; search and matching (search for similar items in EconPapers)
JEL-codes: J21 J31 J61 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2021-10-01, Revised 2024-05-01
New Economics Papers: this item is included in nep-cwa, nep-dge, nep-int, nep-mac and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:rbnkwp:0405

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