How immigration affects German economy according to the endogenous growth model?
Best insight from top research papers
Immigration's impact on the German economy, as per the endogenous growth model, reveals various facets. Recent immigration, including refugees, has a mixed effect on different worker groups. High-skilled immigrant inflows can enhance welfare and bolster the sustainability of the social security system. Additionally, the possession of physical capital by immigrants relative to natives is not the sole determinant of gains from immigration; labor's role in stimulating innovation and productivity is crucial for overall welfare improvement. The underutilization of immigrant workers' productive capacities in Germany suggests that equal employment opportunities could generate welfare gains across all worker groups.
Answers from top 5 papers
More filters
| Papers (5) | Insight |
|---|---|
Open access•Posted Content 01 Jan 2007 | Immigration in the endogenous growth model can lead to Pareto improvement in the German economy, even without immigrants possessing physical capital, contrary to previous findings based on capital stock possession. |
Open access•Posted Content 3 Citations | Immigration, particularly high-skilled, at 0.2% of the population annually, boosts welfare and sustains Germany's social security system, as per the endogenous growth model in the study. |
Open access 01 Jan 2016 | Immigration in Germany, particularly recent influxes, moderately decreases welfare for low-skilled manufacturing workers (-0.6%), while benefiting other groups, with high-skilled service employees gaining the most (+43%). |
Open access•Posted Content 1 Citations | Immigration in Germany, particularly recent influxes, moderately benefits the economy. Low-skilled manufacturing workers see a slight decrease (-0.6%), while high-skilled service employees gain the most (+4.3%). |
Open access•Posted Content 2 Citations | Immigration in Germany, particularly recent influxes, moderately decreases welfare for low-skilled manufacturing workers (-0.6%), while benefiting other groups, notably high-skilled service employees (+4.3%), resulting in an overall positive impact of +1.6%. |
Related Questions
Why old immigrant women affect german economy positively?4 answersOld immigrant women positively impact the German economy due to their influence on labor force participation, fertility decisions, and homecare services. Research shows that an increase in the share of female immigrants at the local level in Germany leads to longer working hours for native women, higher probabilities of having children, and reduced household duties, particularly benefiting medium-skilled women. Motivational factors play a significant role in enhancing labor force participation rates among female immigrants, alongside resources like work experience and language proficiency. Additionally, migrant women's employment behavior is influenced by individual, structural, and cultural factors, with employment decisions embedded in cross-national cultural processes and constrained by various structures. Moreover, migrants, especially Turkish migrants, benefit significantly from self-employment in terms of income, indicating a positive economic impact.
How does immigration effect economic growth?5 answersImmigration can have varying impacts on economic growth depending on factors such as health expenditure, immigrants' skills, and the composition of the immigrant flow. Studies show that health expenditure has a significant positive effect on economic growth, with higher impacts from hospital services and medical products. The skill composition of immigrants plays a crucial role, as high-skill workers tend to have a more beneficial impact on growth. Additionally, policies supporting language learning, gender considerations, legal status, and social integration can enhance immigrants' economic contributions. While some studies confirm a positive effect of migration on economic growth in certain countries like Italy, causality relationships vary across different nations like the United States, United Kingdom, Japan, Germany, France, and Canada.
What is the impact of immigration on the economy?5 answersImmigration has a complex impact on the economy. Economic studies suggest that the overall effect of immigration on native workers' wages and employment is null or slightly positive. However, the immediate labor market effects of unexpected migration episodes can be detrimental. The skill composition of immigrants plays a crucial role in determining their impact on native labor market outcomes. In the case of the United States in the 1920s, the closure of borders led to a decline in earnings for existing US-born workers, despite the loss of immigrant labor supply. Immigrants can contribute to GDP growth and have little effect on average native wages and employment, but they create winners and losers among natives. The impact of immigration on the economy can vary depending on factors such as the country's demographic challenges, assimilation strategies, and the dependency ratio on public finances.
Is immigration good for economy?4 answersImmigration's impact on the economy is not always straightforward. The labor market performance of immigrants is a key factor in determining whether immigration is beneficial or detrimental to a nation's economy. Wage differentials triggering labor migration can lead to overall benefits in the host country. However, the relationship between immigration and economic growth is complex and depends on various factors such as the skill composition of immigrants and the rate of assimilation. Highly educated immigrants tend to contribute more to productivity and economic growth. Additionally, immigration-induced diversity can have a positive effect on economic performance, particularly in middle-income countries. Overall, while immigration can have positive effects on the economy, the skill level of immigrants and other contextual factors play a significant role in determining the extent of these effects.
How does immigration affect the economy?5 answersImmigration can have both positive and negative effects on the economy. The impact of immigration on GDP per capita is found to be adverse, with domestic terrorism having a significant negative effect on GDP per capita. However, the labor market performance of immigrants is a key factor in determining the overall economic impact of immigration. If immigrants quickly find high-paying jobs, the receiving nation is likely to benefit economically. Economic studies suggest that the impact of immigration on native workers' wages and employment is generally null or slightly positive, although the immediate effects of unexpected migration episodes can be detrimental. Policies that restrict the entry of highly skilled and unskilled immigrants can have a depressing effect on job creation and native labor markets. Expansive immigration policies can directly increase foreign direct investment (FDI) inflows by lowering labor costs and securing a stable labor supply.
How does endogenous growth on economic growth?4 answersEndogenous growth theory emphasizes the role of internal factors, such as human capital, knowledge, and institutions, in driving economic growth. It suggests that economic growth is not solely dependent on exogenous factors like physical capital accumulation. Instead, endogenous factors, such as investments in education and research, innovation, and improvements in institutions, play a crucial role in promoting sustained and long-term economic growth. For example, studies have shown that improving institutions can lead to higher economic growth rates. Additionally, the inclusion of human capital in growth models has been found to contribute to higher labor shares and the possibility of unbounded endogenous growth. Furthermore, endogenous growth theory highlights the importance of knowledge creation, technological change, and the role of the state in promoting education and research activities.