The Impact of Immigration on Labor Cost in EU: Is There a Threshold Effect?

Year, pages: 2021, 796 - 811

In this study, the impacts of migration on labor costs are examined within the framework of structural approach by using nonlinear components of migration and labor cost 22 European Union member countries for the period 2000 – 2017. While labor cost is determined as dependent variable, the ratio of immigration to country population is determined as regime dependent regressor and threshold variable and panel threshold method is used in the study. The findings indicate that there is a single threshold level for the established model. In the first regime below the threshold value, it is determined that an increase in immigration reduces labor costs, and if the immigration exceeds the threshold value, it is concluded that the immigration has no effect on the labor costs.

Durmaz, A., Akkuş, Ö. 2021. The Impact of Immigration on Labor Cost in EU: Is There a Threshold Effect?. In Ekonomický časopis/Journal of Economics, vol. 69, no.8, pp. 796-811. 0013-3035. DOI: https://doi.org/10.31577/ekoncas.2021.08.02

Durmaz, A., Akkuş, Ö. (2021). The Impact of Immigration on Labor Cost in EU: Is There a Threshold Effect?. Ekonomický časopis/Journal of Economics, 69(8), 796-811. 0013-3035. DOI: https://doi.org/10.31577/ekoncas.2021.08.02

Publisher: Ekonomický ústav SAV