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

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Author Info
Wido Geis ()
Silke Uebelmesser ()
Martin Werding ()

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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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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2506.

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Date of creation: 2008
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Handle: RePEc:ces:ceswps:_2506

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Related research
Keywords: migration; labour-market institutions; micro-data; Multinomial Choice;

Find related papers by JEL classification:
A00 - General Economics and Teaching - - General - - - General
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December. [Downloadable!] (restricted)
  2. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-37, October. [Downloadable!] (restricted)
    Other versions:
  3. Aslund, Olof, 2005. "Now and forever? Initial and subsequent location choices of immigrants," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 141-165, March. [Downloadable!] (restricted)
  4. Munz, Sonja & Werding, Martin, 2005. "Public pensions and international migration: some clarifications and illustrative results," Journal of Pension Economics and Finance, Cambridge University Press, vol. 4(02), pages 181-207, July. [Downloadable!]
  5. Amelie Constant & Elena D'Agosto, 2008. "Where Do the Brainy Italians Go?," Discussion Papers of DIW Berlin 763, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  6. 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. [Downloadable!] (restricted)
  7. Leamer, Edward E, 1985. "Sensitivity Analyses Would Help," American Economic Review, American Economic Association, vol. 75(3), pages 308-13, June.
  8. Sala-i-Martin, Xavier, 1997. "I Just Ran Two Million Regressions," American Economic Review, American Economic Association, vol. 87(2), pages 178-83, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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 CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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