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Networks and Selection in International Migration to Spain

This paper analyzes the role of ethnic communities in shaping the recent immigration boom to Spain. We find that ethnic communities exerted a strong positive effect on the scale and a strong negative effect on the skill structure of this immigration. Unlike previous studies, we explicitly acknowledge similarities among final migration destinations and thus partly relax the independence of irrelevant alternatives assumption. We strengthen our causal interpretation by controlling for observed and unobserved heterogeneity in bilateral migration costs, and by adopting an instrumental variables approach. Our results suggest that previous estimates of the scale effect are upward-biased by approximately 50%.

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File URL: http://www.iaw.edu/RePEc/iaw/pdf/iaw_dp_83.pdf
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Paper provided by Institut für Angewandte Wirtschaftsforschung (IAW) in its series IAW Discussion Papers with number 83.

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Length: 32 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:iaw:iawdip:83
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  1. Michel BEINE & Frederic DOCQUIER & Caglar OZDEN, 2009. "Diasporas," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009002, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. John M. Quigley, 1976. "Housing Demand in the Short Run: An Analysis of Polytomous Choice," NBER Chapters, in: Explorations in Economic Research, Volume 3, number 1, pages 76-102 National Bureau of Economic Research, Inc.
  3. Sarah Dolfin & Garance Genicot, 2010. "What Do Networks Do? The Role of Networks on Migration and "Coyote" Use," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 343-359, 05.
  4. Hubert JAYET & Nadiya UKRAYINCHUK & Giuseppe DE ARCANGELIS, 2010. "The Location of Immigrants in Italy : Disentangling Networks and Local Effects," Annales d'Economie et de Statistique, ENSAE, issue 97-98, pages 329-350.
  5. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2008. "Selection and network effects--Migration flows into OECD countries 1990-2000," European Economic Review, Elsevier, vol. 52(7), pages 1160-1186, October.
  6. Simone BERTOLI & Herbert BRÜCKER & Jesús FERNÁNDEZ-HUERTAS MORAGA, 2013. "The European Crisis and Migration to Germany: Expectations and the Diversion of Migration Flows," Working Papers halshs-00913869, HAL.
  7. David McKenzie & Hillel Rapoport, 2007. "Self-selection patterns in Mexico-U.S. migration: The role of migration networks," CReAM Discussion Paper Series 0701, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  8. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
  9. Robert Picard, 2010. "GEODIST: Stata module to compute geodetic distances," Statistical Software Components S457147, Boston College Department of Economics, revised 22 Feb 2012.
  10. Bauer, Thomas & Epstein, Gil S & Gang, Ira, 2002. "Enclaves, Language and the Location Choice of Migrants," CEPR Discussion Papers 3527, C.E.P.R. Discussion Papers.
  11. Francesc Ortega & Giovanni Peri, 2009. "The Causes and Effects of International Migrations: Evidence from OECD Countries 1980-2005," NBER Working Papers 14833, National Bureau of Economic Research, Inc.
  12. Simone Bertoli & Jesus Fernández-Huertas Moraga, 2012. "Visa Policies, Networks and the Cliff at the Border," Working Papers 2012-12, FEDEA.
  13. David Mckenzie & Hillel Rapoport, 2004. "Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico," Working Papers 2004-3, Bar-Ilan University, Department of Economics.
  14. Buch, Claudia M. & Kleinert, Jorn & Toubal, Farid, 2006. "Where enterprises lead, people follow? Links between migration and FDI in Germany," European Economic Review, Elsevier, vol. 50(8), pages 2017-2036, November.
  15. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October.
  16. Aslund, Olof, 2005. "Now and forever? Initial and subsequent location choices of immigrants," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 141-165, March.
  17. Brülhart, Marius & Schmidheiny, Kurt, 2009. "On the Equivalence of Location Choice Models: Conditional Logit, Nested Logit and Poisson," CEPR Discussion Papers 7379, C.E.P.R. Discussion Papers.
  18. Chiswick, Barry R. & Miller, Paul W., 2004. "Where Immigrants Settle in the United States," IZA Discussion Papers 1231, Institute for the Study of Labor (IZA).
  19. Nancy H. Chau, 1995. "The Pattern of Migration with Variable Migration Cost," Urban/Regional 9511001, EconWPA.
  20. Simone Bertoli, 2010. "Networks, Sorting and Self-selection of Ecuadorian Migrants," Development Working Papers 287, Centro Studi Luca d\'Agliano, University of Milano, revised 30 Apr 2010.
  21. Michel BEINE & Sara SALOMONE, 2010. "Networks Effects in International Migration : Education versus Gender," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2010022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  22. Pia Orrenius & Madeline Zavodny, 2000. "Self-selection among undocumented immigrants from Mexico," Working Papers 0005, Federal Reserve Bank of Dallas.
  23. Jesus Fernández-Huertas Moraga, 2008. "New Evidence on Emigrant Selection," Working Papers 347, Barcelona Graduate School of Economics.
  24. 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.
  25. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "Multilateral resistance to migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 79-100.
  26. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
  27. Thomas Bauer & Gil S. Epstein & Ira N. Gang, 2009. "Measuring ethnic linkages among migrants," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 56-69, May.
  28. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
  29. Claudia M. Buch & Jörn Kleinert & Farid Toubal, 2003. "Where Enterprises Lead, People Follow? Links between Migration and German FDI," Kiel Working Papers 1190, Kiel Institute for the World Economy.
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