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The Welfare Impact of Global Migration in OECD Countries

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  • Frédéric DOCQUIER

    () (Université Catholique de Louvain)

  • Amandine AUBRY

    (IRES - Université Catholique de Louvain)

  • Michal BURZYŃSKI

    (CREA - University of Luxembourg)

Abstract

This paper quantifies the effect of global migration on the welfare of non-migrant OECD citizens. We develop an integrated, multi-country model that accounts for the interactions between the labor market, fiscal, and market size effects of migration, as well as for trade relations between countries. The model is calibrated to match the economic and demographic characteristics of the 34 OECD countries and the rest of the world, as well as trade flows between them in the year 2010. We show that recent migration flows have been beneficial for 69 percent of the non-migrant OECD population, and for 83 percent of non-migrant citizens of the 22 richest OECD countries. Winners are mainly residing in traditional immigration countries; their gains are substantial and are essentially due to the entry of immigrants from non OECD countries. Although labor market and fiscal effects are non-negligible in some countries, the greatest source of gain comes from the market size effect, i.e. the change in the variety of goods available to consumers.

Suggested Citation

  • Frédéric DOCQUIER & Amandine AUBRY & Michal BURZYŃSKI, 2016. "The Welfare Impact of Global Migration in OECD Countries," Working Papers P156, FERDI.
  • Handle: RePEc:fdi:wpaper:3064
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    Cited by:

    1. Biavaschi, Costanza & Burzy?ski, Micha? & Elsner, Benjamin & Machado, Joel, 2016. "The Gain from the Drain: Skill-biased Migration and Global Welfare," IZA Discussion Papers 10275, Institute for the Study of Labor (IZA).
    2. repec:kap:jecgro:v:23:y:2018:i:2:d:10.1007_s10887-017-9153-z is not listed on IDEAS
    3. Michal Burzynski & Frédéric Docquier & Hillel Rapoport, 2018. "The Changing Structure of Immigration to the OECD: What Welfare Effects on Member Countries?," Working Papers 2018-09, CEPII research center.
    4. Michal Burzynski & Frédéric Docquier & Hillel Rapoport, 2018. "The Changing Structure of Immigration to the OECD: What Welfare Effects on Member Countries?," CESifo Working Paper Series 6992, CESifo Group Munich.
    5. Michal Burzynski, 2016. "Time, Space and Skills in Designing Migration Policy," CREA Discussion Paper Series 16-12, Center for Research in Economic Analysis, University of Luxembourg.
    6. repec:spr:izamig:v:7:y:2017:i:1:d:10.1186_s40176-017-0105-3 is not listed on IDEAS
    7. Costanza Biavaschi & Michal Burzynski & Benjamin Elsner & Joël Machado, 2018. "Taking the Skill Bias out of Global Migration," Working Papers 201810, Geary Institute, University College Dublin.
    8. Blaise Gnimassoun & C. John Anyanwu, 2018. "The Diaspora And Economic Development In Africa," EconomiX Working Papers 2018-16, University of Paris Nanterre, EconomiX.
    9. repec:eur:ejesjr:100 is not listed on IDEAS
    10. Marco Delogu & Frédéric Docquier & Joël Machado, 2018. "Globalizing labor and the world economy: the role of human capital," Journal of Economic Growth, Springer, vol. 23(2), pages 223-258, June.
    11. Dramane Coulibaly & Blaise Gnimassoun & Valérie Mignon, 2018. "The tale of two international phenomena: International migration and global imbalances," Working Papers 2018-02, CEPII research center.
    12. Mawussé K. N. Okey, 2017. "Does migration promote industrial development in Africa?," Economics Bulletin, AccessEcon, vol. 37(1), pages 228-247.

    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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