The effect of immigration on labour market outcomes in Norway

The focus of the paper is the influence of immigrants distribution on unemployment in Norway. These labour flows help markets reach a more efficient allocation of resources. New immigrants flow into labour market and come into a competition with native workers for better vacancies;they apply for different jobs and try to get highest possible wage. The focus of this paper is an investigation of the impact of migration on unemployment. It was concerned with an empirical analysis of the results of relationship between immigrant concentration and unemployment based on county level data. The two groups of models were considered with different explanatory variables.In the first group of models it was estimated the relationship of ratio of immigrants to the total population and unemployment. In the second group of models it was analysed the impact of inflow of immigrants on the change in the unemployment level. I used six model specifications to analyse the dependent variable and estimated long- and short-run coefficients of the changes in the unemployment due to immigrant inflows.