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The Role of Income and Immigration Policies in Attracting International Migrants

Listed author(s):
  • Ortega, Francesc

    ()

    (Queens College, CUNY)

  • Peri, Giovanni

    ()

    (University of California, Davis)

This paper makes two contributions to the literature on the determinants of international migration flows. First, we compile a new dataset on annual bilateral migration flows covering 15 OECD destination countries and 120 sending countries for the period 1980-2006. We also collect data on time-varying immigration policies that regulate the entry of immigrants for our destination countries over this period. Second, we extend the empirical model of migration choice across multiple destinations developed by Grogger and Hanson (2011) by allowing for unobserved individual heterogeneity between migrants and non-migrants. Our estimates show that international migration flows are highly responsive to income per capita at destination. This elasticity is twice as high for within-EU migration, reflecting the higher degree of labor mobility within the European Union. We also find that tightening of laws regulating immigrant entry reduce rapidly and significantly their flow.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6655.

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Length: 34 pages
Date of creation: Jun 2012
Publication status: published as 'The effect of income and immigration policies on international migration' in: Migration Studies, 2013, 1 (1), 47-74.
Handle: RePEc:iza:izadps:dp6655
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  1. Julian di Giovanni & Andrei A. Levchenko & Francesc Ortega, 2012. "A Global View of Cross-Border Migration," Working Papers 627, Research Seminar in International Economics, University of Michigan.
  2. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  3. Jim Dolmas & Gregory W. Huffman, 2004. "On The Political Economy Of Immigration And Income Redistribution," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(4), pages 1129-1168, November.
  4. Libertad Gonzalez & Francesc Ortega, 2009. "Immigration and Housing Booms: Evidence from Spain," CReAM Discussion Paper Series 0919, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  5. Francesc Ortega & Javier G. Polavieja, 2009. "Labor-market exposure as a determinant of attitudes toward immigration," Working Papers 2009-14, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  6. Facchini, Giovanni & Steinhardt, Max, 2011. "What Drives U.S. Immigration Policy? Evidence from Congressional Roll Call Votes," CEPR Discussion Papers 8299, C.E.P.R. Discussion Papers.
  7. Iranzo, Susana & Peri, Giovanni, 2009. "Migration and trade: Theory with an Application to the Eastern- Western European Integration," Working Papers 2072/42865, Universitat Rovira i Virgili, Department of Economics.
  8. Timothy J. Hatton, 2005. "European Asylum Policy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 194(1), pages 106-119, October.
  9. Bertoli, Simone & Fernández-Huertas Moraga, Jesús & Ortega, Francesc, 2010. "Crossing the Border: Self-Selection, Earnings and Individual Migration Decisions," IZA Discussion Papers 4957, Institute for the Study of Labor (IZA).
  10. David Karemera & Victor Iwuagwu Oguledo & Bobby Davis, 2000. "A gravity model analysis of international migration to North America," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1745-1755.
  11. Graziella Bertocchi & Chiara Strozzi, 2008. "International migration and the role of institutions," Public Choice, Springer, vol. 137(1), pages 81-102, October.
  12. Giovanni Facchini & Anna Maria Mayda & Prachi Mishra, 2009. "Do Interest Groups affect US Immigration Policy?," CReAM Discussion Paper Series 0904, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  13. Head, Keith & Mayer, Thierry & Ries, John, 2010. "The erosion of colonial trade linkages after independence," Journal of International Economics, Elsevier, vol. 81(1), pages 1-14, May.
  14. Bertocchi, Graziella & Strozzi, Chiara, 2007. "The Evolution of Citizenship: Economic and Institutional Determinants," CEPR Discussion Papers 6066, C.E.P.R. Discussion Papers.
  15. Pilar García Gómez & Guillem López, 2003. "Hypothesis on immigration and welfare," Economics Working Papers 905, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2005.
  16. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2007. "Estimating Trade Flows: Trading Partners and Trading Volumes," NBER Working Papers 12927, National Bureau of Economic Research, Inc.
  17. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2011. "Multilateral Resistance to Migration," IZA Discussion Papers 5958, Institute for the Study of Labor (IZA).
  18. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-553, September.
  19. Ortega Francesc, 2010. "Immigration, Citizenship, and the Size of Government," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-40, March.
  20. 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.
  21. Barry Chiswick & Timothy J. Hatton, 2003. "International Migration and the Integration of Labor Markets," NBER Chapters, in: Globalization in Historical Perspective, pages 65-120 National Bureau of Economic Research, Inc.
  22. Timothy J. Hatton, 2010. "The Cliometrics Of International Migration: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 24(5), pages 941-969, December.
  23. David McKenzie & Caroline Theoharides & Dean Yang, 2012. "Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks," CReAM Discussion Paper Series 1209, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  24. Jeffrey Grogger & Gordon H. Hanson, 2008. "Income Maximization and the Selection and Sorting of International Migrants," NBER Working Papers 13821, National Bureau of Economic Research, Inc.
  25. Simone Bertoli & Jesus Fernandez-Huertas Moraga & Francesc Ortega, 2011. "Immigration Policies and the Ecuadorian Exodus," World Bank Economic Review, World Bank Group, vol. 25(1), pages 57-76, March.
  26. E. Paul Durrenberger, 2005. "Labour," Chapters, in: A Handbook of Economic Anthropology, chapter 8 Edward Elgar Publishing.
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