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Migration and Development: Dissecting the Anatomy of the Mobility Transition

Listed author(s):
  • Thu Hien Dao

    ()

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • Frédéric Docquier

    ()

    (FNRS, UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and FERDI (France))

  • Chris Parsons

    ()

    (Business School, University of Western Australia)

  • Giovanni Peri

    ()

    (Department of Economics, University of California, Davis, United States)

Emigration first increases before decreasing with economic development. This bell-shaped relationship between emigration and development was first hypothesized by the theory of the mobility transition (Zelinsky, 1971). Although several mechanisms have been proposed to explain the upward segment of the curve (the most common being the existence of financial constraints), they have not been examined in a systematic way. In this paper, we develop a novel migration accounting methodology and use it to quantify the main drivers of the mobility transition curve. Our analysis distinguishes between migration aspirations and realization rates of college-educated and less educated individuals at the bilateral level. Between one-third and one-half of the slope of the increasing segment is due to the changing skill composition of working-age populations, and another third is due to changing network size. The microeconomic channel (including financial incentives and constraints) only accounts for one fourth of the total effect in low-income countries, and for less than one fifth in lower-middle-income countries. Finally, our methodology sheds light on the microfoundations of migration decisions.

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File URL: http://sites.uclouvain.be/econ/DP/IRES/2016029.pdf
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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2016029.

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Length: 32
Date of creation: 06 Dec 2016
Handle: RePEc:ctl:louvir:2016029
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  3. Michel Beine & Frédéric Docquier & Çağlar Özden, 2010. "Diaspora Effects in International Migration: Key Questions and Methodological Issues," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 146(IV), pages 639-659, December.
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