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On the Potential Interaction Between Labour Market Institutions and Immigration Policies

Author

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  • Cigagna, Claudia

    () (University of Cagliari)

  • Sulis, Giovanni

    () (University of Cagliari)

Abstract

Using data on migration flows for a sample of 15 OECD countries over the period 1980-2006, we analyse the effect of unemployment and labour institutions such as employment protection legislation, coverage of unemployment benefits, minimum wages, union power and tax wedge on migration flows. We allow for interactions of these institutions with migration entry laws, as both affect equilibrium wages and employment in destination countries, influencing mobility decisions of immigrants. We find strong and negative effects of unemployment, employment protection and migration policy on flows. The negative effect of migration policy on flows is larger in countries with high than in countries with low employment protection. We find positive effects for minimum wages, unemployment benefits and union power. We deal with potential endogeneity of the variables of interest and report heterogeneous effects depending on the group of countries of origin and destination.

Suggested Citation

  • Cigagna, Claudia & Sulis, Giovanni, 2015. "On the Potential Interaction Between Labour Market Institutions and Immigration Policies," IZA Discussion Papers 9016, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9016
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    Cited by:

    1. Luisa Salaris & Nicola Tedesco, 2020. "Migration and the Labour Market: Ukrainian Women in the Italian Care Sector," Journal of International Migration and Integration, Springer, vol. 21(1), pages 1-20, March.
    2. Lewis, John & Swannell, Matt, 2018. "The macroeconomic determinants of migration," Bank of England working papers 729, Bank of England.
    3. Michel Beine & Joël Machado & Ilse Ruyssen, 2019. "Do potential migrants internalise migrant rights in OECD host societies?," CREA Discussion Paper Series 19-07, Center for Research in Economic Analysis, University of Luxembourg.

    More about this item

    Keywords

    international migration flows; labour market institutions; migration policies;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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