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Miserable Migrants? Natural Experiment Evidence on International Migration and Objective and Subjective Well-Being

Author

Listed:
  • Stillman, Steven

    () (Free University of Bozen/Bolzano)

  • Gibson, John

    () (University of Waikato)

  • McKenzie, David

    () (World Bank)

  • Rohorua, Halahingano

    () (University of Waikato)

Abstract

Over 200 million people worldwide live outside their country of birth and typically experience large gains in material well-being by moving to where incomes are higher. But effects of migration on subjective well-being are less clear, with some studies suggesting that migrants are miserable in their new locations. Observational studies are potentially biased by the self-selection of migrants so a natural experiment is used to compare successful and unsuccessful applicants to a migration lottery in order to experimentally estimate the impact of migration on objective and subjective well-being. The results show that international migration brings large improvements in objective well-being, in terms of incomes and expenditures. Impacts on subjective well-being are complex, with mental health improving but happiness declining, self-rated welfare rising if viewed retrospectively but static if viewed experimentally, self-rated social respect rising retrospectively but falling experimentally and subjective income adequacy rising. We further show that these changes would not be predicted from cross-sectional regressions on the correlates of subjective well-being in either Tonga or New Zealand. More broadly, our results highlight the difficulties of measuring changes in subjective well-being when reference frames change, as likely occurs with migration.

Suggested Citation

  • Stillman, Steven & Gibson, John & McKenzie, David & Rohorua, Halahingano, 2012. "Miserable Migrants? Natural Experiment Evidence on International Migration and Objective and Subjective Well-Being," IZA Discussion Papers 6871, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6871
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    References listed on IDEAS

    as
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    Keywords

    subjective well-being; natural experiment; lottery; immigration; Tonga; Pacific Islands;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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