Effects of migration on productivity, innovation and export activity

Abstract

Immigration of skilled workers is important for the economic perspectives of countries, especially for the ageing European economies such as Austria that will experience a pronounced decline of the labour force due to demographic change. The change in labor supply caused by immigration tends to release positive effects on productivity, innovation and export activity in the host countries. Moreover, immigration is usually accompanied by an increasing cultural diversity of the work force that likely causes additional but moderate benefits. However, the economic consequences in the host countries crucially depend on the skills of the foreign workers. In particular, it matters whether their knowledge and abilities complement those of the native work force. Migration policy should aim at complying these requirements by implementing a regulatory framework that fosters the immigration of skilled workers from a broad range of cultural backgrounds.

Cite article

Niebuhr, A. (2016): Effekte der Migration auf Produktivität, Innovationen und Exportaktivität. In: Wirtschaftspolitische Blätter, Vol. 63, No. 3, p. 543-554.