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Employment Protection and Migration

  • Rémi Bazillier


    (LEO - Laboratoire d'économie d'Orleans - UO - Université d'Orléans - CNRS)

  • Yasser Moullan


    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS, IRDES - Institut de Recherche et Documentation en Economie de la Santé - Institut de la Recherche et Documentation en Economie de la Santé)

We argue in this paper that labor market institutions, and more particularly employment protection (EPL), are an important determinant of migration. Using a bilateral migration database, we empirically show that the employment protection di fferential has a negative impact on bilateral ows. Contrary to pop- ular wisdom which assumes that migrants look for a more protected market, we show that migrants tend to move to countries where employment protection is close to that of their country of origin. Relative preferences over wages or employment, or a distinct impact on wages and employment may explain such results. We also show that these e ffects are stronger for high-skilled workers.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00488345.

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Date of creation: 15 Dec 2012
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Handle: RePEc:hal:cesptp:hal-00488345
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