Aid and Migration: Substitutes or Complements?
Summary This paper investigates the impact of aid on migration and identifies two channels. Bilateral aid influences migration by enhancing the information about labor market conditions in the destination country (attraction effect). Total aid correlates with migration through increasing expenditure financing and hence, wages in countries of origin (push effect). We compute the critical level of income above which emigration and income are substitutes, which is about US $7,300 per capita in PPP 2000 prices, for example, Brazil or Russia. We argue that for countries below this threshold, there is a trade-off between aid and migration policies. A tightening of the migration policy is equivalent to a reduction of the level of aid by about 24%. A comparison of skilled and unskilled migrations shows that the former are more sensitive to the attraction effect than the latter.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sajal Lahiri & Pascalis Raimondos-Møller, 1999.
"Lobbying by Ethnic Groups and Aid Allocation,"
EPRU Working Paper Series
99-05, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics, revised Oct 2003.
- 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.
- Timothy J. Hatton & Jeffrey G. Williamson, 2002. "What Fundamentals Drive World Migration?," NBER Working Papers 9159, National Bureau of Economic Research, Inc.
- Hatton, Timothy J. & Williamson, Jeffrey G., 2003. "What Fundamentals Drive World Migration?," WIDER Working Paper Series 023, World Institute for Development Economic Research (UNU-WIDER).
- Hatton, Timothy J. & Williamson, Jeffrey G, 2002. "What Fundamentals Drive World Migration?," CEPR Discussion Papers 3559, C.E.P.R. Discussion Papers.
- Parsons, Christopher R. & Skeldon, Ronald & Walmsley, Terrie L. & Winters, L. Alan, 2007. "Quantifying international migration : a database of bilateral migrant stocks," Policy Research Working Paper Series 4165, The World Bank.
- Markusen, James R., 1983. "Factor movements and commodity trade as complements," Journal of International Economics, Elsevier, vol. 14(3-4), pages 341-356, May.
- Ralph Rotte & Michael Vogler, 2000.
"The effects of development on migration: Theoretical issues and new empirical evidence,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 13(3), pages 485-508.
- Rotte, Ralph & Vogler, Michael, 1999. "The Effects of Development on Migration: Theoretical Issues and New Empirical Evidence," IZA Discussion Papers 46, Institute for the Study of Labor (IZA).
- Hatton, Timothy J. & Williamson, Jeffrey G., 1998. "The Age of Mass Migration: Causes and Economic Impact," OUP Catalogue, Oxford University Press, number 9780195116519.
- George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
- David Karemera & Victor Iwuagwu Oguledo & Bobby Davis, 2000. "A gravity model analysis of international migration to North America," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1745-1755.
- Faini, Riccardo & Venturini, Alessandra, 1993. "Trade, aid and migrations: Some basic policy issues," European Economic Review, Elsevier, vol. 37(2-3), pages 435-442, April.
When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:37:y:2009:i:10:p:1589-1599. 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: (Dana Niculescu)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.