THE ECONOMIC IMPACT OF IMMIGRATION ON LABOUR MARKETS: A COMPARATIVE STUDY OF FRANCE AND GERMANY

Abstract

This paper aims to investigate the impact of immigration on the labour market in France and Germany using panel data analysis from 2000 to 2020. The study examines various independent variables, including GDP per capita, net migration, inflation, unemployment, and population growth, and utilizes data from the World Development Indicators to validate the models empirically. Econometric models, such as the Pooled OLS model, Fixed Effect model, and ARDL model, are estimated using the statistical program Stata. The findings are supported by the ARDL long-run analysis, which reveals that net migration and GDP per capita have a significant and negative relationship with the dependent variable, the labour force, in the long run. Additionally, GDP per capita exhibits a significant and positive relationship with the labour force. In the short run, inflation shows significance and a positive relationship with the labour force. Moreover, the labour force has an impact on net migration, GDP per capita, and inflation