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Examining the role of amenities in migration decisions: A structural estimation approach

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  • Hong, Gihoon

Abstract

I develop a discrete choice dynamic migration model to examine the importance of amenity values in immigrants' migration decisions. The model accounts for differentials in both wages and location†specific amenities as determinants of migration decisions, and the size of migrants' networks is allowed to influence the value of the US location choice as well. By estimating the model using panel data from the Mexican Migration Project, I find that Mexican migrants place substantial value on amenities in the United States, which are shown to fall precipitously with migrants' age. Simulation results from policy experiments indicate that Mexican immigrants are more responsive to a policy that reduces the amenity values related to unauthorized US residence than to an increase in the number of border patrol officers.

Suggested Citation

Handle: RePEc:eee:paresc:v:95:y:2016:i:4:p:733-755
DOI: 10.1111/pirs.12154
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JEL classification:

  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
  • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
  • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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