The Labour Market Effects of Immigration and Emigration in OECD Countries

In this study, we quantify the labour market effects of migration flows in OECD countries during the 1990s based on a new global database on the bilateral stock of migrants, by education level. We simulate various outcomes using an aggregate model of labour markets, parameterised by a range of estimates from the literature. We find that immigration had a positive effect on the wages of less educated natives and it increased or left unchanged the average native wages. Emigration, instead, had a negative effect on the wages of less educated native workers and increased inequality within countries.