Full Breakdown
Immigration Boosts Productivity in Wealthy Nations, New Study Shows
6/25/2026, 10:33:30 PM
New Study Links Higher Immigration to Labour Productivity Gains
A paper by University of California, Davis economist Giovanni Peri and co-authors will be presented at the ECB Forum on Central Banking in Sintra. Using data from dozens of OECD economies, the analysis links periods of elevated immigration to measurable increases in labour productivity and GDP per worker.
Political Context: Anti-Immigrant Rhetoric on the Rise
The study appears as far-right parties in United States, Germany and Britain place migration at the top of their agendas and claim it harms economies. The research challenges these assertions.
Quantitative Findings
- Immigrant inflows to OECD rose from 25 million in 1990 to 100 million in 2024, while native population growth turned negative in several countries.
- A 1 % rise in immigrant share correlates with a 1.2 % increase in GDP per worker after five years and 1.9 % after ten years.
- In Spain, a 15-percentage-point increase in adult immigrant share from 1990 to 2024 could explain a 28 % higher growth rate in GDP per worker; growth was about 75 %, implying up to one-third of the gain is linked to immigration.
- In United Kingdom, a 10-percentage-point rise in immigrant share is estimated to account for roughly 19 % of the 60 % increase in GDP per person over the same period.
- Authors note that productivity gains persist as immigration rises, citing Canada and Australia as examples of economies that absorb foreign-born populations without losing investment momentum.
Official Statements & Responses
The authors stress that productivity improvements are driven by increased investment accompanying higher immigration. They argue the relationship between migration and performance does not diminish over time, suggesting frameworks that facilitate skilled migration could sustain growth in nations facing negative population change.
Criticism & Opposition
Far-right actors maintain that immigration strains services and labor markets, framing migration as a threat. The study’s conclusions counter this narrative by presenting empirical evidence of net benefits.
Verbatim Quotes
- “Receiving countries' labour productivity grew significantly during and after periods of higher immigration rates,” — Giovanni Peri, Professor, University of California, Davis
- “The predictive coefficients are often significant, economically large and a significant portion of such growth in GDP per worker is realized through strong growth in investments,” — Study authors, ECB paper
- “The benefits from immigration do not fade as inflows rise, the paper found.” — Study authors, remarks
Next Steps
The paper will be discussed at the ECB Forum in Sintra next week, where policymakers and central bankers are expected to evaluate its implications for immigration policy and labor-market strategies across OECD.
