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The Role of Income and Immigration Policies in Attracting International Migrants

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  • Francesc Ortega
  • Giovanni Peri

    (Department of Economics, University of California Davis)

Abstract

This paper makes two contributions to the literature on the determinants of international migration flows. First, we compile a new dataset on annual bilateral migration flows covering 15 OECD destination countries and 120 sending countries for the period 1980-2006. We also collect data on time-varying immigration policies that regulate the entry of immigrants for our destination countries over this period. Second, we extend the empirical model of migration choice across multiple destinations developed by Grogger and Hanson (2011) by allowing for unobserved individual heterogeneity between migrants and non-migrants. Our estimates show that international migration flows are highly responsive to income per capita at destination. This elasticity is twice as high for within-EU migration, reflecting the higher degree of labor mobility within the European Union. We also find that tightening of laws regulating immigrant entry reduce rapidly and significantly their flow.

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Bibliographic Info

Paper provided by University of California, Davis, Department of Economics in its series Working Papers with number 1214.

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Length: 32
Date of creation: 07 Jun 2012
Date of revision:
Handle: RePEc:cda:wpaper:12-14

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Web page: http://www.econ.ucdavis.edu
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Keywords: International Migration; Labor Movements; Immigration Policies.;

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References

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  1. Graziella Bertocchi & Chiara Strozzi, 2010. "The Evolution of Citizenship: Economic and Institutional Determinants," Journal of Law and Economics, University of Chicago Press, vol. 53(1), pages 95-136, 02.
  2. Susana Iranzo & Giovanni Peri, 2009. "Migration and Trade: Theory with an Application to the Eastern-Western European Integration," Working Papers 97, University of California, Davis, Department of Economics.
  3. di Giovanni, Julian & Levchenko, Andrei A. & Ortega, Francesc, 2014. "A Global View of Cross-Border Migration," CEPR Discussion Papers 9919, C.E.P.R. Discussion Papers.
  4. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 441-487, 05.
  5. Simone Bertoli & Jesus Fernandez-Huertas Moraga & Francesc Ortega, 2011. "Immigration Policies and the Ecuadorian Exodus," World Bank Economic Review, World Bank Group, vol. 25(1), pages 57-76, March.
  6. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2011. "Multilateral Resistance to Migration," IZA Discussion Papers 5958, Institute for the Study of Labor (IZA).
  7. Keith Head & John Ries & Thierry Mayer, 2008. "The erosion of colonial trade linkages after independence," Sciences Po publications 6951, Sciences Po.
  8. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September.
  9. Ortega, Francesc, 2009. "Immigration, Citizenship, and the Size of Government," IZA Discussion Papers 4528, Institute for the Study of Labor (IZA).
  10. David Karemera & Victor Iwuagwu Oguledo & Bobby Davis, 2000. "A gravity model analysis of international migration to North America," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1745-1755.
  11. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  12. Simone Bertoli & Jesus Fernandez-Huertas Moraga & Francesc Ortega, 2010. "Crossing the Border: Self-selection, Earnings and Individual Migration Decisions," CReAM Discussion Paper Series 1011, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  13. McKenzie, David & Theoharides, Caroline & Yang, Dean, 2012. "Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks," IZA Discussion Papers 6498, Institute for the Study of Labor (IZA).
  14. Hatton, Timothy J., 2010. "The Cliometrics of International Migration: A Survey," IZA Discussion Papers 4900, Institute for the Study of Labor (IZA).
  15. Timothy J. Hatton, 2005. "European Asylum Policy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 194(1), pages 106-119, October.
  16. Chiswick, Barry R. & Hatton, Timothy J., 2002. "International Migration and the Integration of Labor Markets," IZA Discussion Papers 559, Institute for the Study of Labor (IZA).
  17. Facchini, Giovanni & Steinhardt, Max, 2011. "What Drives U.S. Immigration Policy? Evidence from Congressional Roll Call Votes," IZA Discussion Papers 5561, Institute for the Study of Labor (IZA).
  18. Pilar García Gómez & Guillem López, 2003. "Hypothesis on immigration and welfare," Economics Working Papers 905, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2005.
  19. Libertad Gonzalez & Francesc Ortega, 2009. "Immigration and Housing Booms: Evidence from Spain," CReAM Discussion Paper Series 0919, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  20. Ortega, Francesc & Polavieja, Javier G., 2009. "Labor-Market Exposure as a Determinant of Attitudes toward Immigration," IZA Discussion Papers 4519, Institute for the Study of Labor (IZA).
  21. Graziella Bertocchi & Chiara Strozzi, 2008. "International Migration and the Role of Institutions," Center for Economic Research (RECent) 012, University of Modena and Reggio E., Dept. of Economics.
  22. Jeffrey Grogger & Gordon H. Hanson, 2008. "Income Maximization and the Selection and Sorting of International Migrants," NBER Working Papers 13821, National Bureau of Economic Research, Inc.
  23. Francesc Ortega & Giovanni Peri, 2009. "The Causes and Effects of International Migrations: Evidence from OECD Countries 1980-2005," Working Papers 96, University of California, Davis, Department of Economics.
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RePEc Biblio mentions

As found on the RePEc Biblio, the curated bibliography for Economics:
  1. > International Economics > International Migration
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Cited by:
  1. Ortega, Francesc & Peri, Giovanni, 2013. "Migration, Trade and Income," IZA Discussion Papers 7325, Institute for the Study of Labor (IZA).
  2. Betz, William & Simpson, Nicole B., 2013. "The Effects of International Migration on the Well-Being of Native Populations in Europe," IZA Discussion Papers 7368, Institute for the Study of Labor (IZA).
  3. Ortega, Francesc & Peri, Giovanni, 2014. "Openness and income: The roles of trade and migration," Journal of International Economics, Elsevier, vol. 92(2), pages 231-251.

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