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The effect of income and immigration policies on international migration

In: The Economics of International Migration

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  • Francesc Ortega
  • Giovanni Peri

Abstract

This article makes two contributions to the literature on the determinants of international migration flows. First, we compile a new dataset on annual bilateral migration flows covering 15 OECD destination countries and 120 sending countries for the period 1980–2006. The dataset also contains data on time-varying immigration policies that regulate the entry of immigrants in our destination countries over this period. Second, we present an empirical model of migration choice across multiple destinations that allows for unobserved individual heterogeneity and derive a structural estimating equation. Our estimates show that international migration flows are highly responsive to income per capita at destination. This elasticity is twice as high for within-European Union (EU) migration, reflecting the higher degree of labor mobility within the EU. We also find that tightening of laws regulating immigrant entry reduce rapidly and significantly their flow.

Suggested Citation

  • Francesc Ortega & Giovanni Peri, 2016. "The effect of income and immigration policies on international migration," World Scientific Book Chapters, in: The Economics of International Migration, chapter 11, pages 333-360, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789814719902_0011
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    Cited by:

    1. Cattaneo, Cristina & Peri, Giovanni, 2016. "The migration response to increasing temperatures," Journal of Development Economics, Elsevier, vol. 122(C), pages 127-146.
    2. 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.
    3. Jiří Balcar & Jan Šulák, 2021. "Urban environmental quality and out-migration intentions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(3), pages 579-607, June.
    4. Protte, Benjamin, 2012. "How does Economic Integration Change Personal Income Taxation? Evidence from a new Index of Potential Labor Mobility," Working Papers 12-20, University of Mannheim, Department of Economics.
    5. Rosa Sanchis-Guarner, 2014. "First-Come First-Served: Identifying the Demand Effect of Immigration Inflows on House Prices," SERC Discussion Papers 0160, Spatial Economics Research Centre, LSE.
    6. Ferrie, Joseph & Hatton, Timothy J., 2013. "Two Centuries of International Migration," IZA Discussion Papers 7866, Institute of Labor Economics (IZA).
    7. Hatton, Timothy J., 2014. "The economics of international migration: A short history of the debate," Labour Economics, Elsevier, vol. 30(C), pages 43-50.
    8. Eran Yashiv, 2021. "Moving from a Poor Economy to a Rich One: A Job Tasks Approach," CReAM Discussion Paper Series 2119, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    9. repec:wip:wpaper:8 is not listed on IDEAS

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    More about this item

    Keywords

    Migration; Immigration; Growth; Productivity; Labor Markets; Selection; Immigration Policies;
    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
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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