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The Effect of Migration on Income Growth and Convergence: Meta-Analytic Evidence

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Author Info

  • Ozgen, Ceren

    ()
    (VU University Amsterdam)

  • Nijkamp, Peter

    ()
    (VU University Amsterdam)

  • Poot, Jacques

    ()
    (University of Waikato)

Abstract

We compare a set of econometric studies that measure the effect of net internal migration in neoclassical models of long-run real income convergence and derive 67 comparable effect sizes. The precision-weighted estimate of beta convergence is about 2.7%. An increase in the net migration rate of a region by one percentage point in increases the per capita income growth rate in that region on average by about 0.1 percentage points, thus suggesting an impact of net migration that is more consistent with endogenous self-reinforcing growth than with neoclassical convergence. Introducing a net migration variable in a growth regression increases the estimate of beta convergence slightly. Studies that use panel models or IV estimation methods yield smaller coefficients of net migration in growth regressions, while the opposite holds for regressions controlling for high-skilled migration.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4522.

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Length: 39 pages
Date of creation: Oct 2009
Date of revision:
Publication status: published in: Papers in Regional Science, 2010, 89 (3), 537-561
Handle: RePEc:iza:izadps:dp4522

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Keywords: internal migration; economic growth; convergence; meta-analysis; neoclassical model; regional disparities;

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References

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  1. Jordan M. Rappaport, 2000. "How Does Labor Mobility Affect Income Convergence?," Econometric Society World Congress 2000 Contributed Papers 0124, Econometric Society.
  2. Brian Cushing & Jacques Poot, 2003. "Crossing boundaries and borders: Regional science advances in migration modelling," Papers in Regional Science, Springer, vol. 83(1), pages 317-338, October.
  3. Mark J. Koetse & Raymond J.G.M. Florax & Henri L.F. de Groot, 2007. "The Impact of Effect Size Heterogeneity on Meta-Analysis: A Monte Carlo Experiment," Tinbergen Institute Discussion Papers 07-052/3, Tinbergen Institute.
  4. Murat G. Kırdar & D. Şirin Saracoğlu, 2008. "Migration and regional convergence: An empirical investigation for Turkey," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 545-566, November.
  5. Nijkamp, P. & Abreu, M., 2009. "Regional development theory," Serie Research Memoranda 0029, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  6. Jon Nelson & Peter Kennedy, 2009. "The Use (and Abuse) of Meta-Analysis in Environmental and Natural Resource Economics: An Assessment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(3), pages 345-377, March.
  7. Hideaki Toya & Kaoru Hosono & Tatsuji Makino, 2004. "Human Capital, Migration, and Regional Income Convergence in the Philippines," Hi-Stat Discussion Paper Series d03-18, Institute of Economic Research, Hitotsubashi University.
  8. Ravi Kanbur & Hillel Rapoport, 2005. "Migration selectivity and the evolution of spatial inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 43-57, January.
  9. Reichlin, Pietro & Rustichini, Aldo, 1998. "Diverging patterns with endogenous labor migration," Journal of Economic Dynamics and Control, Elsevier, vol. 22(5), pages 703-728, May.
  10. Jacques Poot, 2007. "Demographic Change and Regional Competitiveness: The Effects of Immigration and Ageing," Population Studies Centre Discussion Papers dp-64, University of Waikato, Population Studies Centre.
  11. Laura de Dominicis & Raymond J. G. M. Florax & Henri L. F. de Groot, 2008. "A Meta-Analysis On The Relationship Between Income Inequality And Economic Growth," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(5), pages 654-682, November.
  12. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2005. "A Meta-Analysis of Beta-Convergence: The Legendary Two-Percent," Tinbergen Institute Discussion Papers 05-001/3, Tinbergen Institute.
  13. DOBSON, Steve & RAMLOGAN, Carlyn & STROBL, Eric, 2003. "Why do rates of convergence differ ? A meta-regression analysis," CORE Discussion Papers 2003020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  14. Ugo Fratesi & Massimiliano Riggi, 2004. "Migration and Regional Disparities: the Role of Skill Biased Flows," Urban/Regional 0407004, EconWPA.
  15. Bernard Fingleton & Manfred Fischer, 2010. "Neoclassical theory versus new economic geography: competing explanations of cross-regional variation in economic development," The Annals of Regional Science, Springer, vol. 44(3), pages 467-491, June.
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Citations

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Cited by:
  1. Gabriele Tondl & Peter Huber, 2011. "Migration and Regional Convergence in the European Union," ERSA conference papers ersa11p1761, European Regional Science Association.
  2. K. Newbold, 2012. "Migration and regional science: opportunities and challenges in a changing environment," The Annals of Regional Science, Springer, vol. 48(2), pages 451-468, April.
  3. Emmanuel Skoufias & Gladys Lopez-Acevedo, 2009. "Latin America - Determinants of Regional Welfare Disparities within Latin American Countries : Synthesis," World Bank Other Operational Studies 3048, The World Bank.
  4. Kubis, Alexander & Schneider, Lutz, 2012. "Human capital mobility and convergence : a spatial dynamic panel model of the German regions," IAB Discussion Paper 201223, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  5. Peter Nijkamp, 2012. "Migration Impact Assessment: A Review of Evidence-Based Findings," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 4(2), pages 179-208, December.
  6. Hildegunn Stokke & J√âˆrn Ratts√âˆ, 2011. "Income convergence, migration and geography: Distribution analysis of regions in Norway," ERSA conference papers ersa10p174, European Regional Science Association.
  7. Stephan Brunow & Hanna Brenzel, 2012. "The effect of a culturally diverse labour supply on regional income in the EU," Empirica, Springer, vol. 39(4), pages 461-485, November.
  8. Sofia Tano, 2014. "Regional clustering of human capital: school grades and migration of university graduates," The Annals of Regional Science, Springer, vol. 52(2), pages 561-581, March.
  9. Fernandez-Leiceaga, Xoaquin & Lago-Peñas, Santiago & Sánchez, Patricio, 2013. "¿Ha contribuido la población inmigrante a la convergencia interregional en España?
    [On the contribution of immigrants to interregional convergence in Spain]
    ," MPRA Paper 52381, University Library of Munich, Germany.
  10. Annie Tubadji & Peter Nijkamp, 2013. "Cultural Distance and Gravity Effects among Migrants," ERSA conference papers ersa13p484, European Regional Science Association.
  11. Celbis, Mehmet Güney & Nijkamp, Peter & Poot, Jacques, 2013. "How big is the impact of infrastructure on trade? Evidence from meta-analysis," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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