Wiener Institut für Internationale Wirtschaftsvergleiche
The Vienna Institute for International Economic Studies
www.wiiw.ac.at
Migrants and Economic Performance in the EU15:
1. their allocations across countries, industries and job types
2. their (productivity) growth “impacts” at the sectoral and regional
levels
FIW Study by M. Landesmann, R. Stehrer and M. Liebensteiner
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Migrants and Economic Performance in the EU15:
wiiw participated in 3 studies recently:
Alvarez-Plata/Bruecker et al (2008): The impact of East-West migration after EU Enlargement
Migration, Skills and Productivity (2009): Background study for EU (DG Enterprise) Competitiveness Report 2009
Landesmann, Stehrer, Liebensteiner (2010): FIW Study
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Content of the study:
Part I: Descriptive Analysis using LFS data
Migrant workers in the EU15; their places of origin, their ‘skills’ (educational attainment levels); their allocations across industries and ‘job types’; skills-jobs mismatches; comparisons with ‘domestic’ employees.
Part 2: Econometric analysis: Migrants and productivity and output growth
LFS data supplemented with industry level (EU-KLEMS) data and regional statisticsMigrants’ presence at industry and regional levels and productivity and output growth; the impact of skill structure of migrants; impact of integration policy indicators.Main challenge: causality and endogeneity issues. Unresolved
Policy Brief: Focus on Austria relative to EU15: skill composition of migrants; skills-jobs mismatches
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Migrants (‚Foreign Born‘) in Total Workforce (%)
0
2
4
6
8
10
12
14
16
18
AT ES SE IE NL UK FR BE IT GR PT DK FI
Period 2000-02 Period 2005-07
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Migrants in total workforces by origin (%)
Migrants in Total Workforce by Origin (%)
0
2
4
6
8
10
12
14
16
00-02AT
00-02BE
00-02DK
00-02ES
00-02FI
00-02FR
00-02GR
00-02IE
00-02IT
00-02NL
00-02PT
00-02SE
00-02UK
Western Europe EU12 Europe Rest Rest of World Rich Rest of World Medium + Poor
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Migrants skill groups in the workforces (%)High skilled
0
2
4
6
8
10
IE SE UK BE ES NL AT FR DK PT GR IT FI
per 00-02 per 05-07
Medium skilled
0
2
4
6
8
10
AT SE UK NL IE ES IT BE FR GR DK PT FI
per 00-02 per 05-07
Low skilled
0
2
4
6
8
10
ES AT FR GR PT IT BE NL SE IE UK DK FI
per 00-02 per 05-07
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Skill Composition of Migrants and of Domestic
Workers by Country (%), 2005-07
0%10%20%30%40%50%60%70%80%90%
100%
D M D M D M D M D M D M D M D M D M D M
AT BE DK FI FR IE NL SE UK EU15
Low Skilled Medium Skilled High Skilled
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Employment shares in high skill industries (%)
Migrants and domestics
0
10
20
30
40
50
60
AT BE DK ES FI FR GR IE IT LU NL PT SE UK
Dom Mig
High skilled migrants and high skilled domestics
0
5
10
15
20
25
30
AT BE DK ES FI FR GR IE IT LU NL PT SE UK
Dom Mig
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Skills mismatches of high-skilled workers - Over qualification (Over-/underrepresentation of migrants
relatively to domestic workers, averages 2005-07)
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
1
AT BE DK ES FI FR GR IE IT NL PT SE UK
Sh1occ3 Sh1occ2
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Relative over-qualification and correct-qualification of
migrants vs. domestic workers, 2005-07
Over qualification
-1
-0.5
0
0.5
1
AT BE DK ES FI FR GR IE IT NL PT SE UK
Sh1occ3 Sh1occ2
Correct qualification
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
AT BE DK ES FI FR GR IE IT NL PT SE UK
Sh1occ1 Sh2occ2 Sh3occ3
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Job matching in low skill jobs:domestic workers and migrants, 2005-2007
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
AT BE DK FI FR IE NL SE UK
skill1occ1D skill1occ1M
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Job matching in medium skill jobs:domestic workers and migrants, 2005-2007
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
AT BE DK ES FI FR GR IE NL PT SE UK
skill2occ2D skill2occ2M
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Job matching in high skill jobs:domestic workers and migrants, 2005-2007
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
AT BE DK ES FI FR GR IE NL PT SE UK
skill3occ3D skill3occ3M
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Austria and its Migrant Labour Force:
Comparison with EU15 peers
Main policy results from Huber et al (2009) and Landesmann et al (2010):
Austria has (comparatively) an unfavourable skill composition of migrants; especially in the context of various skill-biased developments
Evidence of under-utilisation of migrants’ skills (‘brain waste’)
Austria has a comparatively very low indicator on anti-discrimination policy setting
Insufficient use of high-skilled migrants in high-skilled industries and in ‘skill-intensive jobs’ - compared to ‘peer countries’
