The Dynamic Microsimulation Model microDEMS to Analyse the Economic Integration of Immigrants in Austria

This paper describes the structure and functionality of the dynamic microsimulation model microDEMS for analysing the economic integration of immigrants in Austria. Dynamic microsimulation refers to the simulation of a population, represented by a large number of individuals, over time. In addition to demographic characteristics such as age, gender and origin, various aspects of individual life courses such as educational and employment careers are simulated. microDEMS (Demographic Change, Employment and Social Security) is a modular dynamic microsimulation model developed by WIFO and designed for a broad range of applications in Austrian economic research. The main focus of this paper is the description of those modules that have been specifically developed to analyse the economic integration of immigrants. microDEMS supports the creation of scenarios for immigration by origin and type. The individual (and parental) immigration background influences numerous modelled behaviours such as educational careers, labour market participation and emigration. The model allows to analyse the long-term effects of alternative scenarios of educational and employment integration of immigrants on the socio-demographic structure of the population living in Austria.