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The Role of Income and Immigration Policies in Attracting International Migrants

  • 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
Date of revision:
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. McKenzie, David & Theoharides, Caroline & Yang, Dean, 2012. "Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks," IZA Discussion Papers 6498, Institute for the Study of Labor (IZA).
  2. Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," Scholarly Articles 3228230, Harvard University Department of Economics.
  3. 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).
  4. Graziella Bertocchi & Chiara Strozzi, 2008. "International migration and the role of institutions," Public Choice, Springer, vol. 137(1), pages 81-102, October.
  5. Giovanni Facchini & Max Steinhardt, 2010. "What drives US Immigration Policy? Evidence from Congressional Roll Call Votes," Development Working Papers 294, Centro Studi Luca d'Agliano, University of Milano.
  6. Gonzalez, Libertad & Ortega, Francesc, 2009. "Immigration and Housing Booms: Evidence from Spain," IZA Discussion Papers 4333, Institute for the Study of Labor (IZA).
  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. Simone Bertoli & Jesús Fernández-HuertasMoraga, 2011. "Multilateral Resistance to Migration," Working Papers 2011-04, FEDEA.
  9. Hatton, Timothy J., 2005. "European Asylum Policy," IZA Discussion Papers 1721, Institute for the Study of Labor (IZA).
  10. Hatton, Timothy J., 2010. "The Cliometrics of International Migration: A Survey," IZA Discussion Papers 4900, Institute for the Study of Labor (IZA).
  11. Graziella Bertocchi & Chiara Strozzi, 2010. "The Evolution of Citizenship: Economic and Institutional Determinants," Journal of Law and Economics, University of Chicago Press, vol. 53(1), pages 95-136, 02.
  12. Keith Head & Thierry Mayer & John Ries, 2008. "The erosion of colonial trade linkages after independence," Sciences Po publications 6951, Sciences Po.
  13. Dolmas, James & Huffman, Gregory W., 1998. "On the political economy of immigration and income redistribution," Working Papers 9804, Federal Reserve Bank of Dallas.
  14. Chiswick, Barry R. & Hatton, Timothy J., 2002. "International Migration and the Integration of Labor Markets," IZA Discussion Papers 559, Institute for the Study of Labor (IZA).
  15. di Giovanni, Julian & Levchenko, Andrei A. & Ortega, Francesc, 2014. "A Global View of Cross-Border Migration," CEPR Discussion Papers 9919, C.E.P.R. Discussion Papers.
  16. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2011. "Do interest groups affect US immigration policy?," Journal of International Economics, Elsevier, vol. 85(1), pages 114-128, September.
  17. 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.
  18. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September.
  19. 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.
  20. Ortega, Francesc & Polavieja, Javier G., 2012. "Labor-market exposure as a determinant of attitudes toward immigration," Labour Economics, Elsevier, vol. 19(3), pages 298-311.
  21. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  22. 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.
  23. E. Paul Durrenberger, 2005. "Labour," Chapters, in: A Handbook of Economic Anthropology, chapter 8 Edward Elgar Publishing.
  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. Bertoli, Simone & Fernández-Huertas Moraga, Jesús & Ortega, Francesc, 2010. "Immigration Policies and the Ecuadorian Exodus," IZA Discussion Papers 4737, Institute for the Study of Labor (IZA).
  26. 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.
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