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How do Migrants Choose Their Destination Country? An Analysis of Institutional Determinants

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  • Wido Geis
  • Silke Uebelmesser
  • Martin Werding

Abstract

For a long time, migration has been subject to intensive economic research. Nevertheless, empirical evidence regarding the determinants of migration still appears to be incomplete. In this paper, we analyze the effects of socio-economic and institutional determinants, especially labor-market institutions, on migrants' choices. Based on a large data set constructed from micro-data for France, Germany, the UK and the US, we study their decisions to migrate to one of the four countries using a Multinomial Choice framework. Our estimates confirm a number of conventional results such as positive effects of wages and immigrant networks and negative effects of unemployment rates. In addition, we find that employment protection, union coverage and unemployment benefits have positive effects on migration. Also good education and health systems tend to attract migrants, while generous pension systems may deter them. Based on separate estimations for high- and low-skilled migrants, there is evidence that the effects of labor-market institutions differ across skill groups.

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File URL: http://hdl.handle.net/10.1111/roie.12073
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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 21 (2013)
Issue (Month): 5 (November)
Pages: 825-840

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Handle: RePEc:bla:reviec:v:21:y:2013:i:5:p:825-840

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References

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  1. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2004. "Selection or Network Effects? Migration Flows into 27 OECD Countries, 1990-2000," IZA Discussion Papers 1104, Institute for the Study of Labor (IZA).
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  4. Amelie F. Constant & Elena D’Agosto, 2010. "Where Do the Brainy Italians Go?," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, edition 1, chapter 10, pages 247-271 AIEL - Associazione Italiana Economisti del Lavoro.
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  6. George J. Borjas, 1998. "Immigration and Welfare Magnets," NBER Working Papers 6813, National Bureau of Economic Research, Inc.
  7. Koethenbuerger, Marko & Poutvaara, Panu & Profeta, Paola, 2008. "Why are more redistributive social security systems smaller? A median voter approach," Munich Reprints in Economics 19459, University of Munich, Department of Economics.
  8. Åslund, Olof, 2001. "Now and forever? Initial and subsequent location choices of immigrants," Working Paper Series 2001:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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  10. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
  11. Thomas Bauer & Gil S. Epstein & Ira N. Gang, 2006. "The Influence of Stocks and Flows on Migrants’ Location Choices," CEDI Discussion Paper Series 06-13, Centre for Economic Development and Institutions(CEDI), Brunel University.
  12. Leamer, Edward E, 1985. "Sensitivity Analyses Would Help," American Economic Review, American Economic Association, vol. 75(3), pages 308-13, June.
  13. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
  14. Lundborg, Per, 1991. " Determinants of Migration in the Nordic Labor Market," Scandinavian Journal of Economics, Wiley Blackwell, vol. 93(3), pages 363-75.
  15. Wido Geis & Silke Uebelmesser & Martin Werding, 2008. "Why go to France or Germany, if you could as well go to the UK or the US? Selective Features of Immigration to four major OECD Countries," CESifo Working Paper Series 2427, CESifo Group Munich.
  16. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October.
  17. Xavier X. Sala-i-Martin, 1997. "I Just Ran Four Million Regressions," NBER Working Papers 6252, National Bureau of Economic Research, Inc.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. How Do Migrants Choose Their Destination Country? An Analysis of Institutional Determinants
    by UDADISI in UDADISI on 2013-10-24 10:55:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Mario Morger, 2013. "What Do Immigrants Value Most About Switzerland? Evidence of the Relative Importance of Income Taxes," CESifo Working Paper Series 4134, CESifo Group Munich.
  2. Wido Geis & Silke Uebelmesser & Martin Werding, 2008. "Why go to France or Germany, if you could as well go to the UK or the US? Selective Features of Immigration to four major OECD Countries," CESifo Working Paper Series 2427, CESifo Group Munich.
  3. Nowotny, Klaus & Pennerstorfer, Dieter, 2012. "Ethnic Networks and the Location Choice of Migrants in Europe," Working Papers in Economics and Finance 2012-7, University of Salzburg.
  4. Werding, Martin & McLennan, Stuart, 2011. "International portability of health-cost coverage : concepts and experience," Social Protection Discussion Papers 63929, The World Bank.
  5. Martin Werding & Stuart McLennan, 2012. "International Portability of Health-Cost Cover: Mobility, Insurance, and Redistribution," CESifo Working Paper Series 3952, CESifo Group Munich.
  6. Klaus Nowotny, 2011. "Welfare Magnets, Taxation and the Location Decisions of Migrants to the EU," WIFO Working Papers 393, WIFO.
  7. Electra Petracou & Anastasios Xepapadeas & Athanasios Yannacopoulos, . "The bioeconomics of migration: A selective review towards a modelling perspective," DEOS Working Papers 1306, Athens University of Economics and Business.
  8. Peter Huber & Klaus Nowotny & Julia Bock-Schappelwein, 2010. "Qualification Structure, Over- and Underqualification of the Foreign Born in Austria and the EU," FIW Research Reports series II-008, FIW.
  9. Assaf Razin & Jackline Wahba, 2012. "Migration Policy and the Generosity of the Welfare State in Europe," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 9(4), pages 28-31, 02.

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