Scandinavian Working Papers in Economics

Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

No 08-23: Does Immigration Boost Per Capita Income?

Gabriel J. Felbermayr (), Sanne Hiller () and Davide Sala ()
Additional contact information
Gabriel J. Felbermayr: Department of Economics, Postal: University of Stuttgart-Hohenheim, 70593 Stuttgart, Germany
Sanne Hiller: Department of Economics, Aarhus School of Business, Postal: Frichshuset Hermodsvej 22, 8230 Åbyhøj , Denmark
Davide Sala: Department of Economics, Aarhus School of Business, Postal: Frichshuset Hermodsvej 22, 8230 Åbyhøj , Denmark

Abstract: Using a cross-section of countries, we adapt Frankel and Romer's (1999) IV strategy to international labor mobility. Controlling for institutional quality, trade, and nancial openness, we establish a robust and non-negative causal e ect of immigration on real percapita income.

Keywords: Gravity model; International trade; International migration; Cross-country income regression

JEL-codes: F12; F22

21 pages, October 1, 2008

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