Economic effects of mass migration

Researchers find positive effects on innovation and technological development. One explanation for this may be that emigration increased the wages of those who remained, which created a pressure on labor-saving measures and therefore encouraged investment and new inventions. Innovation increased more in the sectors that were exposed to emigration. Both local and national emigration from a certain sector led to increased innovation.

– This is an indication that inventors took into account the national market for their patent, as increased wages elsewhere in the country would lead to demand for their innovations, says Mounir Karadja, one of the researchers behind the study.

The paper "Mass Migration and Technological Change" will soon be published in The Journal of the European Economic Association and can be downloaded here

Contact mounir.karadja@nek.uu.se for more information.