IDEAS home Printed from https://ideas.repec.org/a/eee/deveco/v132y2018icp88-101.html
   My bibliography  Save this article

Migration and development: Dissecting the anatomy of the mobility transition

Author

Listed:
  • Dao, Thu Hien
  • Docquier, Frédéric
  • Parsons, Chris
  • Peri, Giovanni

Abstract

Emigration first increases and then decreases as a country experiences economic development. This inverted U-shaped, cross-sectional relationship between emigration and development was first hypothesized by Zelinsky's theory of the mobility transition. Although several mechanisms have been proposed to explain the upward segment of the curve (the most common being the existence of financial constraints), they have not been examined in a systematic way. In this paper, we propose two decomposition methods to disentangle the main drivers of the mobility transition curve to OECD destination countries. Our simple decompositions shed light on the role of both microeconomic drivers (i.e., financial incentives and constraints) and macroeconomic drivers, as well as the skill composition of the population. Our double decomposition further distinguishes between migration aspirations and realization rates by education level. Overall, we provide consistent evidence that the role of financial constraints, while relevant for the poorest countries, is limited. Rather, a large fraction of the increasing segment is explained by the skill composition and by macroeconomic drivers (i.e., by factors that do not change in the short-run).

Suggested Citation

  • Dao, Thu Hien & Docquier, Frédéric & Parsons, Chris & Peri, Giovanni, 2018. "Migration and development: Dissecting the anatomy of the mobility transition," Journal of Development Economics, Elsevier, vol. 132(C), pages 88-101.
  • Handle: RePEc:eee:deveco:v:132:y:2018:i:c:p:88-101
    DOI: 10.1016/j.jdeveco.2017.12.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030438781730113X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Simone Bertoli & Ilse Ruyssen, 2018. "Networks and migrants’ intended destination," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 705-728.
    2. Michael Clemens, 2014. "Does Development Reduce Migration? - Working Paper 359," Working Papers 359, Center for Global Development.
    3. Enrico Spolaore & Romain Wacziarg, 2015. "Ancestry, Language and Culture," NBER Working Papers 21242, National Bureau of Economic Research, Inc.
    4. Michel Beine & Fréderic Docquier & Hillel Rapoport, 2008. "Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers," Economic Journal, Royal Economic Society, vol. 118(528), pages 631-652, April.
    5. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "Multilateral resistance to migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 79-100.
    6. Christopher R. Parsons & L. Alan Winters, 2014. "International migration, trade and aid: a survey," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 4, pages 65-112, Edward Elgar Publishing.
    7. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 01A, Center for International Development at Harvard University.
    8. Michel Beine & Frédéric Docquier & Çağlar Özden, 2010. "Diaspora Effects in International Migration: Key Questions and Methodological Issues," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 146(IV), pages 639-659, December.
    9. Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and … Convergence, Period," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 351-397.
    10. Frédéric Docquier & Joël Machado & Khalid Sekkat, 2015. "Efficiency Gains from Liberalizing Labor Mobility," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 303-346, April.
    11. Artuc, Erhan & Docquier, Frédéric & Özden, Çaglar & Parsons, Christopher, 2015. "A Global Assessment of Human Capital Mobility: The Role of Non-OECD Destinations," World Development, Elsevier, vol. 65(C), pages 6-26.
    12. Enrico Spolaore & Romain Wacziarg, 2009. "The Diffusion of Development," The Quarterly Journal of Economics, Oxford University Press, vol. 124(2), pages 469-529.
    13. Matías COVARRUBIAS & Jeanne LAFORTUNE & José TESSADA, 2015. "Who Comes and Why ? Determinants of Immigrants Skill Level in the Early XXth Century US," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 81(1), pages 115-155, March.
    14. Dustmann, Christian & Okatenko, Anna, 2014. "Out-migration, wealth constraints, and the quality of local amenities," Journal of Development Economics, Elsevier, vol. 110(C), pages 52-63.
    15. Santos Silva, J.M.C. & Tenreyro, Silvana, 2011. "Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator," Economics Letters, Elsevier, vol. 112(2), pages 220-222, August.
    16. Philip L. Martin, 1993. "Trade and Migration: NAFTA and Agriculture," Peterson Institute Press: Policy Analyses in International Economics, Peterson Institute for International Economics, number PA 38, February.
    17. Gallup, John & Sachs, Jeffrey, 1999. "Geography and Economic Development," Harvard Institute for International Development (HIID) Papers 294434, Harvard University, Kennedy School of Government.
    18. Mayer, Thierry & Zignago, Soledad, 2006. "Notes on CEPII’s distances measures," MPRA Paper 26469, University Library of Munich, Germany.
    19. Michael Clemens & Claudio Montenegro & Lant Pritchett, 2008. "The Place Premium: Wage Differences for Identical Workers across the U.S. Border," Working Papers 148, Center for Global Development.
    20. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    21. Stark, Oded & Taylor, J Edward, 1991. "Migration Incentives, Migration Types: The Role of Relative Deprivation," Economic Journal, Royal Economic Society, vol. 101(408), pages 1163-1178, September.
    22. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
    23. Baier, Scott L. & Bergstrand, Jeffrey H., 2009. "Estimating the effects of free trade agreements on international trade flows using matching econometrics," Journal of International Economics, Elsevier, vol. 77(1), pages 63-76, February.
    24. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1999. "Geography and Economic Development," International Regional Science Review, , vol. 22(2), pages 179-232, August.
    25. Cansin Arslan & Jean-Christophe Dumont & Zovanga Kone & Yasser Moullan & Caglar Ozden & Christopher Parsons & Theodora Xenogiani, 2015. "A New Profile of Migrants in the Aftermath of the Recent Economic Crisis," OECD Social, Employment and Migration Working Papers 160, OECD Publishing.
    26. Clemens, Michael A. & Pritchett, Lant, 2019. "The new economic case for migration restrictions: An assessment," Journal of Development Economics, Elsevier, vol. 138(C), pages 153-164.
    27. Michael A. Clemens, 2014. "Does development reduce migration?," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 6, pages 152-185, Edward Elgar Publishing.
    28. Altinok,Nadir & Angrist,Noam & Patrinos,Harry Anthony, 2018. "Global data set on education quality (1965-2015)," Policy Research Working Paper Series 8314, The World Bank.
    29. Mountford, Andrew, 1997. "Can a brain drain be good for growth in the source economy?," Journal of Development Economics, Elsevier, vol. 53(2), pages 287-303, August.
    30. Philip L. Martin, 1993. "Trade and Migration: NAFTA and Agriculture," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa38, January.
    31. Ronald Lee, 2003. "The Demographic Transition: Three Centuries of Fundamental Change," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 167-190, Fall.
    32. Jones, C.I., 2016. "The Facts of Economic Growth," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 3-69, Elsevier.
    33. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
    34. Michael Clemens and Lant Pritchett, 2016. "The New Economic Case for Migration Restrictions: An Assessment - Working Paper 423," Working Papers 423, Center for Global Development.
    35. Oded Stark & J. Taylor, 1989. "Relative deprivation and international migration oded stark," Demography, Springer;Population Association of America (PAA), vol. 26(1), pages 1-14, February.
    36. Frédéric Docquier & Giovanni Peri & Ilse Ruyssen, 2016. "The Cross-country Determinants of Potential and Actual Migration," World Scientific Book Chapters, in: The Economics of International Migration, chapter 12, pages 361-423, World Scientific Publishing Co. Pte. Ltd..
    37. Angrist, Noam & Patrinos, Harry Anthony & Schlotter, Martin, 2013. "An expansion of a global data set on educational quality : a focus on achievement in developing countries," Policy Research Working Paper Series 6536, The World Bank.
    38. Hatton, Timothy J. & Williamson, Jeffrey G., 1998. "The Age of Mass Migration: Causes and Economic Impact," OUP Catalogue, Oxford University Press, number 9780195116519.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marco Delogu & Frédéric Docquier & Joël Machado, 2018. "Globalizing labor and the world economy: the role of human capital," Journal of Economic Growth, Springer, vol. 23(2), pages 223-258, June.
    2. Delgadillo Chavarria, Carlos Bruno, 2019. "El Efecto de la Mediterraneidad sobre el Flujo Comercial Internacional: Evidencia Empírica Internacional y para América del Sur (1990-2016) [The Effect of Landlocked Country Status on International," MPRA Paper 96093, University Library of Munich, Germany, revised 10 Sep 2019.
    3. Delgadillo Chavarria, Carlos Bruno, 2019. "El Efecto de la Mediterraneidad sobre el Flujo Comercial Internacional: Evidencia Empírica Internacional y para América del Sur (1990-2016) [The Effect of Landlocked Country Status on International," MPRA Paper 96294, University Library of Munich, Germany, revised 10 Sep 2019.
    4. Michel Beine & Joël Machado & Ilse Ruyssen, 2020. "Do potential migrants internalize migrant rights in OECD host societies?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1429-1456, November.
    5. P. Dorian Owen, 2017. "Evaluating Ingenious Instruments for Fundamental Determinants of Long-Run Economic Growth and Development," Econometrics, MDPI, Open Access Journal, vol. 5(3), pages 1-33, September.
    6. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Journal of Economic Growth, Springer, vol. 21(2), pages 101-138, June.
    7. James B. Ang, 2015. "Agricultural Legacy, Individualistic Culture, and Techology Adoption," Economic Growth Centre Working Paper Series 1506, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    8. Diego Comin & William Easterly & Erick Gong, 2010. "Was the Wealth of Nations Determined in 1000 BC?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(3), pages 65-97, July.
    9. Hildegunn Kyvik Nordås, 2019. "Frankel and Romer revisited," International Economics, CEPII research center, issue 159, pages 26-35.
    10. Quamrul Ashraf & Oded Galor, 2013. "The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative Economic Development," American Economic Review, American Economic Association, vol. 103(1), pages 1-46, February.
    11. Cristina Cattaneo, 2009. "International Migration, the Brain Drain and Poverty: A Cross‐country Analysis," The World Economy, Wiley Blackwell, vol. 32(8), pages 1180-1202, August.
    12. Gören, Erkan, 2017. "The persistent effects of novelty-seeking traits on comparative economic development," Journal of Development Economics, Elsevier, vol. 126(C), pages 112-126.
    13. Akbari, Mahsa & Bahrami-Rad, Duman & Kimbrough, Erik O., 2019. "Kinship, fractionalization and corruption," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 493-528.
    14. Erkan Goeren, 2017. "The Role of Novelty-Seeking Traits in Contemporary Knowledge Creation," Working Papers V-402-17, University of Oldenburg, Department of Economics, revised Sep 2017.
    15. Simone BERTOLI & Frédéric DOCQUIER & Hillel RAPOPORT & Ilse RUYSSEN, 2019. "Weather shocks and migration intentions in Western Africa: Insights from a multilevel analysis," Working Paper c5999d24-4da2-42c5-8c94-e, Agence française de développement.
    16. Ömer Özak, 2018. "Distance to the pre-industrial technological frontier and economic development," Journal of Economic Growth, Springer, vol. 23(2), pages 175-221, June.
    17. Rok Spruk, 2019. "The rise and fall of Argentina," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-40, December.
    18. James Feyrer, 2019. "Trade and Income—Exploiting Time Series in Geography," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 1-35, October.
    19. KAFANDO, Namalguebzanga, 2014. "L'industrialisation de l'Afrique: l'importance des facteurs structurels et du régime de change [The industrialization of Africa: the importance of structural factors and exchange rate regime]," MPRA Paper 68736, University Library of Munich, Germany.
    20. Gerrit Faber & Michiel Gerritse, 2017. "Does Institutional Change Spread Across Countries? Explaining Spatial Patterns in Human Rights," The World Economy, Wiley Blackwell, vol. 40(5), pages 906-930, May.

    More about this item

    Keywords

    Migration; Development; Human capital; Credit constraints;
    All these keywords.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:132:y:2018:i:c:p:88-101. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/devec .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nithya Sathishkumar (email available below). General contact details of provider: http://www.elsevier.com/locate/devec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.