Economic Impact of Immigration in Austria, 1989–2007

The consequences of migration into Austria have in recent years have once again been a central theme in public and political debates. One reason for this is the considerable increase in the supply of labour in the Austrian labour market which countered any decline in the unemployment rate in spite of a booming economy in 2005. Secondly, the debate is driven by discussions connected to the transition regime chosen by Austria in the course of the EU expansion. Nevertheless, the literature widely ignores the accelerated migration of the past years and particularly its effects. Migration since 2000 is very much different from that in the 1990s. The countries of origin have changed, as have the skills and sector structure. The duration of stay and skills structure of the foreign labour pool have become altogether more diverse. Against this background, the study looks into the economic effects of an increasingly heterogeneous migration into Austria, examining macroeconomic aspects, microeconomic perspectives and the skills structure of the resident migrants, and provides a summary forecast.