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Selection or Network Effects? Migration Flows into 27 OECD Countries, 1990-2000

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Author Info

  • Pedersen, Peder J.

    ()
    (Aarhus University)

  • Pytlikova, Mariola

    ()
    (Aarhus School of Business)

  • Smith, Nina

    ()
    (Aarhus University)

Abstract

Recent migration patterns show growing migration pressure and changing composition of immigrants in many Western countries. During the latest decade, an increasing proportion of the OECD immigrants have been from poor countries, where the educational level of the population is low. The migration patterns may be affected by the relatively generous welfare schemes in most OECD countries, but also network effects and migration policy changes may be important factors behind the observed development. This paper presents empirical evidence on immigration flows into 27 OECD countries during a period of 11 years, 1990– 2000. Using a panel data model, we analyze the determinants of the migration flows. Our results indicate that traditional factors as cultural and linguistic distance are important. Network effects are also strong, but vary between source and destination countries. We do not find clear evidence that selection effects have had a major influence on the observed migration patterns until now. This may partly be explained by restrictive migration policies in many OECD countries which may have dampened the potential selection effects.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1104.

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Length: 49 pages
Date of creation: Apr 2004
Date of revision:
Publication status: published in: European Economic Review, 2008, 52 (7), 1160-1186
Handle: RePEc:iza:izadps:dp1104

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Keywords: network effects; selectivity effects; international migration; migration policy;

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References

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  1. Barry Chiswick & Timothy J.. Hatton, 2003. "International Migration and the Integration of Labor Markets," NBER Chapters, in: Globalization in Historical Perspective, pages 65-120 National Bureau of Economic Research, Inc.
  2. Heitmueller, Axel, 2003. "Coordination Failures in Network Migration," IZA Discussion Papers 770, Institute for the Study of Labor (IZA).
  3. Chiswick, Barry R., 2000. "Are Immigrants Favorably Self-Selected? An Economic Analysis," IZA Discussion Papers 131, Institute for the Study of Labor (IZA).
  4. Storesletten, Kjetil, 2001. "Fiscal Implications of Immigration - A Net Present Value Calculation -," Seminar Papers 701, Stockholm University, Institute for International Economic Studies.
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  8. Timothy Hatton & Jeffery Williamson, 2002. "What Fundamentals Drive World Migration?," CEPR Discussion Papers 458, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  9. Enchautegui, Maria E, 1997. "Welfare Payments and Other Economic Determinants of Female Migration," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 529-54, July.
  10. Robert Kaestner & Neeraj Kaushal & Gregg Van Ryzin, 2001. "Migration Consequences of Welfare Reform," NBER Working Papers 8560, National Bureau of Economic Research, Inc.
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  12. Bruce D. Meyer, 1998. "Do the Poor Move to Receive Higher Welfare Benefits?," JCPR Working Papers 58, Northwestern University/University of Chicago Joint Center for Poverty Research.
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  14. Richard Jackman & S Savouri, 1991. "Regional Migration in Britain: An Analysis of Gross Flows using NHS Central Register Data," CEP Discussion Papers dp0027, Centre for Economic Performance, LSE.
  15. Epstein, Gil S., 2002. "Informational Cascades and Decision to Migrate," IZA Discussion Papers 445, Institute for the Study of Labor (IZA).
  16. Pedersen, Peder J. & Smith, Nina, 2001. "International Migration and Migration policy in Denmark," CLS Working Papers 01-5, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  17. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
  18. George J. Borjas, 1988. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc.
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  20. Fertig, Michael & Schmidt, Christoph M., 2000. "Aggregate-Level Migration Studies as a Tool for Forecasting Future Migration Streams," IZA Discussion Papers 183, Institute for the Study of Labor (IZA).
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