Dissecting Network Externalities in International Migration
AbstractExisting migrant networks play an important role in explaining the size and structure of immigration flows. They affect the net benefits of migration for future migrants by lowering assimilation costs (‘self-selection’ channel) and increase the probability of potential migrants to obtain a visa through family reunification programs (‘immigration policy’ channel). This paper presents an identification strategy allowing to disentangle these two channels. Then, it provides an empirical illustration based on US immigration data by metropolitan area and country of origin. First, we show that the overall network externality is strong: the elasticity of migration flows to network size is around one. Second, only a quarter of this elasticity is accounted for by the policy channel. Third, the policy channel was stronger in the nineties than in the eighties due to more generous family reunion program. Fourth, the global elasticity and the policy contribution are much greater for low-skilled migrants.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3333.
Date of creation: 2011
Date of revision:
migration; network/diaspora externalities; immigration policy;
Other versions of this item:
- Michel BEINE & Frédéric DOCQUIER & Caglar ÖZDEN, 2011. "Dissecting Network Externalities in International Migration," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Michel Beine & Frédéric Docquier & Caglar Özden, 2011. "Dissecting Network Externalities in International Migration," CREA Discussion Paper Series 11-09, Center for Research in Economic Analysis, University of Luxembourg.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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