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Aggregate Fluctuations and International Migration

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  • Michel Beine
  • Pauline Bourgeon
  • Jean‐Charles Bricongne

Abstract

In this paper, we study the role of short‐run factors such as business cycles or changes in employment rates in explaining international migration flows. First, we derive a model of optimal migration choice predicting that short‐run economic fluctuations trigger migration flows on top of the impact exerted by long‐run factors. Second, we empirically test the magnitude of the effect of these short‐run factors on migration flows. Our results indicate that both aggregate fluctuations and employment rates affect migration flows. Third, we provide evidence that the Schengen Agreement and the euro significantly increased the international mobility of workers between the member countries.uuuü

Suggested Citation

  • Michel Beine & Pauline Bourgeon & Jean‐Charles Bricongne, 2019. "Aggregate Fluctuations and International Migration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 117-152, January.
    • Handle: RePEc:bla:scandj:v:121:y:2019:i:1:p:117-152
    DOI: 10.1111/sjoe.12258
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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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