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Immigration Policies and the Ecuadorian Exodus

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  • Simone Bertoli
  • Jesus Fernandez-Huertas Moraga
  • Francesc Ortega

Abstract

Ecuador recently experienced an unprecedented wave of emigration following the severe economic crisis of the late 1990s. Individual-level data for Ecuador and its two main migration destinations, Spain and the United States, are used to examine the size and skill composition of these migration flows and the role of wage differences in accounting for these features. Estimations of earnings regressions for Ecuadorians in all three countries show substantially larger income gains following migration to the United States than to Spain, with the wage differential increasing with migrants' education level. While this finding can account for the pattern of positive sorting in education toward the United States, it fails to explain why most Ecuadorians opted for Spain. The explanation for this preference appears to lie in Spain's visa waiver program for Ecuadorians. When the program was abruptly terminated, monthly inflows of Ecuadorians to Spain declined immediately. Copyright , Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal The World Bank Economic Review.

Volume (Year): 25 (2011)
Issue (Month): 1 (March)
Pages: 57-76

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Handle: RePEc:oup:wbecrv:v:25:y:2011:i:1:p:57-76

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  1. Francesc Ortega & Giovanni Peri, 2009. "The Causes and Effects of International Migrations: Evidence from OECD Countries 1980-2005," NBER Working Papers 14833, National Bureau of Economic Research, Inc.
  2. David McKenzie & Hillel Rapoport, 2007. "Self-selection patterns in Mexico-U.S. migration: The role of migration networks," CReAM Discussion Paper Series 0701, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
  4. Andrew Atkeson & V. V. Chari & Patrick J. Kehoe, 2009. "Sophisticated monetary policies," Staff Report 419, Federal Reserve Bank of Minneapolis.
  5. Daniel Chiquiar & Gordon H. Hanson, 2002. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," NBER Working Papers 9242, National Bureau of Economic Research, Inc.
  6. Fabian Valencia & Luc Laeven, 2008. "Systemic Banking Crises," IMF Working Papers 08/224, International Monetary Fund.
  7. Simone Bertoli, 2010. "Networks, Sorting and Self-selection of Ecuadorian Migrants," Development Working Papers 287, Centro Studi Luca d\'Agliano, University of Milano, revised 30 Apr 2010.
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