Population Aging and Migration

Reducing poverty and improving equity
Sep 27, 2021 | ifo Institute - Leibniz Institute for Economic Research, Panu Poutvaara

International migration flows largely reflect demographic patterns and economic opportunities. Migration flows reflect an increase in expected income and other pull factors in potential destinations, and push factors in the countries of origin, like high unemployment, low wages, and high population growth. Panu Poutvaara notes in this working paper for the ifo Institute - Leibniz Institute for Economic Research that a falling supply of young workers and high wages in Europe are a major pull factor for potential migrants from Africa and the Middle East which face an oversupply of young workers relative to new job openings and have relatively low wage levels. The author presents evidence on the impact of immigration on age structure and labour markets in OECD receiving countries. In the 21st century, fertility rates and emigration rates in Africa will be crucial questions for demographic and migration research.

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