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Dissecting Network Externalities in International Migration

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  • Michel Beine
  • Frédéric Docquier
  • Caglar Özden

Abstract

Existing migrant networks play an important role in explaining the size and structure of immigration flows. They affect the net benefits of migration for future migrants by lowering assimilation costs (‘self-selection’ channel) and increase the probability of potential migrants to obtain a visa through family reunification programs (‘immigration policy’ channel). This paper presents an identification strategy allowing to disentangle these two channels. Then, it provides an empirical illustration based on US immigration data by metropolitan area and country of origin. First, we show that the overall network externality is strong: the elasticity of migration flows to network size is around one. Second, only a quarter of this elasticity is accounted for by the policy channel. Third, the policy channel was stronger in the nineties than in the eighties due to more generous family reunion program. Fourth, the global elasticity and the policy contribution are much greater for low-skilled migrants.

Suggested Citation

  • Michel Beine & Frédéric Docquier & Caglar Özden, 2011. "Dissecting Network Externalities in International Migration," CESifo Working Paper Series 3333, CESifo.
  • Handle: RePEc:ces:ceswps:_3333
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    References listed on IDEAS

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    Cited by:

    1. Michel Beine, 2016. "The role of networks for migration flows: an update," International Journal of Manpower, Emerald Group Publishing, vol. 37(7), pages 1154-1171, October.
    2. Neubecker, Nina & Smolka, Marcel, 2013. "Co-national and cross-national pulls in international migration to Spain," International Review of Economics & Finance, Elsevier, vol. 28(C), pages 51-61.
    3. Driouchi, Ahmed, 2014. "Evidence and Prospects of Shortage and Mobility of Medical Doctors: A Literature Survey," MPRA Paper 59322, University Library of Munich, Germany.
    4. Zaiceva, A. & Zimmermann, K.F., 2016. "Migration and the Demographic Shift," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 119-177, Elsevier.

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    More about this item

    Keywords

    migration; network; diaspora externalities; immigration policy;
    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

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