Working Paper: CEPR ID: DP1791
Authors: Stefan M. Golder; Thomas Straubhaar
Abstract: Switzerland has experienced a substantial influx of immigrants over the 50 years since World War II, to the extent that it now has one of the highest share of foreigners in population among OECD countries. This paper analyses Switzerland?s experience of migration, centring on two main issues: the economic effects of migration and the labour market performance of immigrants. Two main results emerge from our study: first, as a result of shortcomings of the Swiss migration policy, immigrants tend to have a negative impact on the Swiss economy; and second, the analysis of labour market performance shows that there are substantial discrepancies in the performance of immigrants from different countries of origin. Immigrants from North European countries largely outperform immigrants from South European and non-European countries. On the basis of the empirical analysis, this study finally outlines some reform options for Swiss migration policy.
Keywords: factor income distribution; factor mobility; international migration; labour productivity; earnings assimilation
JEL Codes: D33; F22; J15; J24; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| shortcomings in Swiss migration policy (J18) | negative economic impact (F69) |
| country of origin (O57) | labor market performance (J48) |
| immigrant labor (J82) | native employment (J15) |
| influx of low-skilled immigrants (J69) | slowdown in technological progress (O33) |
| employment of immigrant workers (J68) | overly labor-intensive production technology (L23) |
| overly labor-intensive production technology (L23) | negative economic effects (F69) |