Last Updated:
Study of OECD countries finds higher immigration boosts GDP per worker, driving up to one third of growth in Spain, Italy and the UK, and helping offset ageing populations.
Study of OECD countries finds higher immigration boosts GDP per worker, driving up to one third of growth in Spain, Italy and the UK, and helping offset ageing populations.
Immigration has delivered major economic gains to wealthy countries over the past three decades, boosting productivity, investment and growth even as political opposition to migration has intensified across the United States and Europe, according to a new study.
The research, which examined data from dozens of countries in the Organisation for Economic Co-operation and Development (OECD), found that nations with higher immigration rates saw significant improvements in labour productivity — or output per worker.
The study, led by University of California, Davis professor Giovanni Peri, is set to be presented at the European Central Bank’s annual forum in Sintra next week.
Immigration Linked To Higher Productivity
According to the paper, an increase in immigrants equal to 1% of a country’s population was associated with a 1.2% rise in GDP per worker within five years and a 1.9% increase over a decade.
The researchers said the gains were driven in part by stronger investment and the arrival of skilled workers, challenging claims that immigration weakens economic performance in receiving countries.
“Receiving countries’ labour productivity grew significantly during and after periods of higher immigration rates,” the study said.
One-Third Of Growth In Some Countries
The findings suggest immigration may have accounted for as much as one-third of growth in GDP per worker in countries such as Spain, Italy and the United Kingdom between 1990 and 2024.
In Spain, the immigrant share of the adult population rose by 15 percentage points over the period. The study estimated that this could have resulted in GDP-per-worker growth being 28% higher than it would otherwise have been.
Spain’s actual GDP per worker grew by around 75% during the same period, suggesting that immigration may have contributed up to one-third of that increase.
In the UK, the immigrant share of the population rose by 10 percentage points. The paper estimated that immigration accounted for around 19 percentage points of the country’s total 60% increase in GDP per person over the period.
Offsetting Ageing Populations
The research comes as many advanced economies face ageing populations and shrinking workforces. The number of immigrants arriving in OECD countries from outside the bloc rose to around 100 million in 2024, from about 25 million in 1990, while native-born population growth turned negative in several countries.
The study said immigration could help offset demographic pressures, particularly in the European Union, where natural population change has been negative since 2015 and the decline accelerated after the Covid-19 pandemic.
Canada, Australia Show Capacity To Absorb More Workers
The researchers also found that the economic benefits did not disappear as immigration increased. Canada and Australia, both of which have large foreign-born populations, showed that countries could absorb more workers without losing the positive impact on productivity and investment.
The findings come amid a sharp political debate over immigration, with right-wing and anti-immigration parties gaining ground in several countries. The study, however, argues that the economic data points to substantial long-term benefits for receiving nations.
About the Author
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, …Read More
London, United Kingdom (UK)
Read More
Source link
[ad_3]
