The Causality Between Economic Growth and Immigration in Germany and Switzerland

This paper analyses the relationship between immigration and the economic growth in Germany and Switzerland during the period 1970-2005 by using a cointegration approach. Both countries have gone through a similar learning process. First they encouraged low-skilled and temporary workers. More recent...

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Bibliographic Details
Published inThe Economic and social review Vol. 42; no. 3; pp. 271 - 287
Main Authors Gonzalez-Gomez, Manuel, Giraldez, MaSoledadOtero
Format Journal Article
LanguageEnglish
Published Dublin Economic and Social Research Institute 01.09.2011
Subjects
Causality
Cointegration analysis
Comparative studies
Economic growth
Empirical research
Germany
Immigrants
Immigration
Labor shortages
Labour market
Noncitizens
Population ageing
Recruitment
Skills
Switzerland
Temporary employment
Western Europe
Switzerland
Germany
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Summary:This paper analyses the relationship between immigration and the economic growth in Germany and Switzerland during the period 1970-2005 by using a cointegration approach. Both countries have gone through a similar learning process. First they encouraged low-skilled and temporary workers. More recently, they have attracted high-skilled people and restricted the recruitment of low-skilled immigrants. Our empirical analysis reveals important differences between Germany and Switzerland. The results may be useful for other countries that attract immigrants to compensate for shortages in the labour market and in response to the ageing of the population. [PUBLICATION ABSTRACT]
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ISSN:0012-9984