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The Effect of Migration on Income Growth and Convergence: Meta-Analytic Evidence

  • Ozgen, Ceren

    ()

    (VU University Amsterdam)

  • Nijkamp, Peter

    ()

    (VU University Amsterdam)

  • Poot, Jacques

    ()

    (University of Waikato)

We compare a set of econometric studies that measure the effect of net internal migration in neoclassical models of long-run real income convergence and derive 67 comparable effect sizes. The precision-weighted estimate of beta convergence is about 2.7%. An increase in the net migration rate of a region by one percentage point in increases the per capita income growth rate in that region on average by about 0.1 percentage points, thus suggesting an impact of net migration that is more consistent with endogenous self-reinforcing growth than with neoclassical convergence. Introducing a net migration variable in a growth regression increases the estimate of beta convergence slightly. Studies that use panel models or IV estimation methods yield smaller coefficients of net migration in growth regressions, while the opposite holds for regressions controlling for high-skilled migration.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4522.

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Length: 39 pages
Date of creation: Oct 2009
Date of revision:
Publication status: published in: Papers in Regional Science, 2010, 89 (3), 537-561
Handle: RePEc:iza:izadps:dp4522
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  1. Mark J. Koetse & Raymond J.G.M. Florax & Henri L.F. de Groot, 2007. "The Impact of Effect Size Heterogeneity on Meta-Analysis: A Monte Carlo Experiment," Tinbergen Institute Discussion Papers 07-052/3, Tinbergen Institute.
  2. Adolfo Maza, 2006. "Migrations and Regional Convergence: The Case of Spain," Review of Regional Research, Springer, vol. 26(2), pages 191-202, October.
  3. Laura de Dominicis & Raymond J. G. M. Florax & Henri L. F. de Groot, 2008. "A Meta-Analysis On The Relationship Between Income Inequality And Economic Growth," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(5), pages 654-682, November.
  4. Bernard Fingleton & Manfred Fischer, 2010. "Neoclassical theory versus new economic geography: competing explanations of cross-regional variation in economic development," The Annals of Regional Science, Springer, vol. 44(3), pages 467-491, June.
  5. Jacques Poot, 2007. "Demographic Change and Regional Competitiveness: The Effects of Immigration and Ageing," Population Studies Centre Discussion Papers dp-64, University of Waikato, Population Studies Centre.
  6. Brian Cushing & Jacques Poot, 2003. "Crossing boundaries and borders: Regional science advances in migration modelling," Economics of Governance, Springer, vol. 83(1), pages 317-338, October.
  7. Kanbur, Ravi & Rapoport, Hillel, 2003. "Migration Selectivity And The Evolution Of Spatial Inequality," Working Papers 127769, Cornell University, Department of Applied Economics and Management.
  8. Jon Nelson & Peter Kennedy, 2009. "The Use (and Abuse) of Meta-Analysis in Environmental and Natural Resource Economics: An Assessment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(3), pages 345-377, March.
  9. Jordan Rappaport, 1999. "How does labor mobility affect income convergence?," Research Working Paper 99-12, Federal Reserve Bank of Kansas City.
  10. Ugo Fratesi & Massimiliano Riggi, 2004. "Migration and Regional Disparities: the Role of Skill Biased Flows," Urban/Regional 0407004, EconWPA.
  11. Hideaki Toya & Kaoru Hosono & Tatsuji Makino, 2004. "Human Capital, Migration, and Regional Income Convergence in the Philippines," Hi-Stat Discussion Paper Series d03-18, Institute of Economic Research, Hitotsubashi University.
  12. Murat G. Kırdar & D. Şirin Saracoğlu, 2008. "Migration and regional convergence: An empirical investigation for Turkey," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 545-566, November.
  13. Reichlin, Pietro & Rustichini, Aldo, 1998. "Diverging patterns with endogenous labor migration," Journal of Economic Dynamics and Control, Elsevier, vol. 22(5), pages 703-728, May.
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  15. repec:dgr:uvatin:20070052 is not listed on IDEAS
  16. DOBSON, Steve & RAMLOGAN, Carlyn & STROBL, Eric, 2003. "Why do rates of convergence differ ? A meta-regression analysis," CORE Discussion Papers 2003020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  17. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2005. "A Meta-Analysis of Beta-Convergence: The Legendary Two-Percent," Tinbergen Institute Discussion Papers 05-001/3, Tinbergen Institute.
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