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ofurkan.coWP No. 26-01
Oldenburg --:--
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Immigration, Crime and Prosperity

Paper2026Applied Economics research project, Uni Oldenburg
Figure A.5. Illustrative figure, generated from the project name.
Abstract

A 400-district, 19-year panel of Germany: prosperity follows the quality of labour-market integration, not the quantity of migrants.

Methods
Two-way FE · Constructed indices · District panel
Stack
R · TWFE · renv · Make · INKAR · PKS

A balanced panel of 400 German districts (NUTS-3), 2003 to 2021, 7,200 observations, combining BBSR INKAR indicators, police crime statistics (PKS) and disaggregated state capital stocks.

Constructed metrics

  • Labour Integration Efficacy (LIE): how efficiently a district absorbs its foreign-born population into the active labour market.
  • Foreign Labour Supply Pressure (FLSP): the concentration of foreign labour reserves relative to the regional labour force.

Findings (two-way fixed effects)

  • The integration dividend. A 1% increase in lagged LIE raises GDP per capita by about 0.028%.
  • Quantity versus quality. A higher foreign-born share without integration has a slightly negative effect (β = -0.005).
  • Property damage as a density proxy correlates positively with prosperity, capturing urban vibrancy rather than decline.
  • Regional heterogeneity. The integration gains concentrate in mature, high-capital Western districts.

The whole study runs end to end with make all: a 32-stage pipeline under renv. The inkaR package was born here.