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The effect of income and immigration policies on international migration

In: The Economics of International Migration

Author

Listed:
  • 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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    References listed on IDEAS

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    1. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "Multilateral resistance to migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 79-100.
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    8. Francesc Ortega & Giovanni Peri, 2012. "The Effect of Trade and Migration on Income," NBER Working Papers 18193, National Bureau of Economic Research, Inc.
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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. 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.
    4. 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.
    5. Ferrie, Joseph & Hatton, Timothy J., 2013. "Two Centuries of International Migration," IZA Discussion Papers 7866, Institute of Labor Economics (IZA).
    6. Hatton, Timothy J., 2014. "The economics of international migration: A short history of the debate," Labour Economics, Elsevier, vol. 30(C), pages 43-50.
    7. repec:wip:wpaper:8 is not listed on IDEAS

    More about this item

    Keywords

    Migration; Immigration; Growth; Productivity; Labor Markets; Selection; Immigration Policies;

    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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