IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp9538.html
   My bibliography  Save this paper

Can Selective Immigration Policies Reduce Migrants' Quality?

Author

Listed:
  • Bertoli, Simone

    (CERDI, Université Clermont Auvergne)

  • Dequiedt, Vianney

    (CERDI, University of Auvergne)

  • Zenou, Yves

    (Monash University)

Abstract

Destination countries can adopt selective immigration policies to improve migrants' quality. Screening potential migrants on the basis of observable characteristics also influences their self-selection on unobservables. We propose a model that analyzes the effects of selective immigration policies on migrants' quality, measured by their wages at destination. We show that the prevailing pattern of selection on unobservables influences the effect of an increase in selectivity, which can reduce migrants' quality when migrants are positively self-selected on unobservables. We also demonstrate that, in this case, the quality-maximizing share of educated migrants declines with the scale of migration.

Suggested Citation

  • Bertoli, Simone & Dequiedt, Vianney & Zenou, Yves, 2015. "Can Selective Immigration Policies Reduce Migrants' Quality?," IZA Discussion Papers 9538, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9538
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp9538.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    2. Jesúús Fernández-Huertas Moraga, 2011. "New Evidence on Emigrant Selection," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 72-96, February.
    3. Cunha, Flavio & Heckman, James J., 2007. "Identifying and Estimating the Distributions of Ex Post and Ex Ante Returns to Schooling," Labour Economics, Elsevier, vol. 14(6), pages 870-893, December.
    4. George J. Borjas, 2021. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    5. Milo Bianchi, 2013. "Immigration Policy and Self-Selecting Migrants," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(1), pages 1-23, February.
    6. Bertoli, Simone, 2010. "The informational structure of migration decision and migrants self-selection," Economics Letters, Elsevier, vol. 108(1), pages 89-92, July.
    7. McKenzie, David, 2007. "Paper Walls Are Easier to Tear Down: Passport Costs and Legal Barriers to Emigration," World Development, Elsevier, vol. 35(11), pages 2026-2039, November.
    8. Heckman, James J. & Kautz, Tim, 2012. "Hard evidence on soft skills," Labour Economics, Elsevier, vol. 19(4), pages 451-464.
    9. Dequiedt, Vianney & Zenou, Yves, 2013. "International migration, imperfect information, and brain drain," Journal of Development Economics, Elsevier, vol. 102(C), pages 62-78.
    10. Biavaschi, Costanza & Elsner, Benjamin, 2013. "Let's Be Selective about Migrant Self-Selection," IZA Discussion Papers 7865, Institute of Labor Economics (IZA).
    11. Frédéric Docquier & Joël Machado & Khalid Sekkat, 2015. "Efficiency Gains from Liberalizing Labor Mobility," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 303-346, April.
    12. Giordani, Paolo E. & Ruta, Michele, 2013. "Coordination failures in immigration policy," Journal of International Economics, Elsevier, vol. 89(1), pages 55-67.
    13. Heather Antecol & Deborah A. Cobb-Clark & Stephen J. Trejo, 2003. "Immigration Policy and the Skills of Immigrants to Australia, Canada, and the United States," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    14. Stacey H. Chen, 2008. "Estimating the Variance of Wages in the Presence of Selection and Unobserved Heterogeneity," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 275-289, May.
    15. Bhagwati, Jagdish & Hanson, Gordon H (ed.), 2009. "Skilled Immigration Today: Prospects, Problems, and Policies," OUP Catalogue, Oxford University Press, number 9780195382433.
    16. Simone Bertoli & Hillel Rapoport, 2015. "Heaven's Swing Door: Endogenous Skills, Migration Networks, and the Effectiveness of Quality-Selective Immigration Policies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 565-591, April.
    17. Fernández-Huertas Moraga, Jesús, 2013. "Understanding different migrant selection patterns in rural and urban Mexico," Journal of Development Economics, Elsevier, vol. 103(C), pages 182-201.
    18. Bertoli, S. & Fernández-Huertas Moraga, J. & Ortega, F., 2013. "Crossing the border: Self-selection, earnings and individual migration decisions," Journal of Development Economics, Elsevier, vol. 101(C), pages 75-91.
    19. Artuc, Erhan & Docquier, Frédéric & Özden, Çaglar & Parsons, Christopher, 2015. "A Global Assessment of Human Capital Mobility: The Role of Non-OECD Destinations," World Development, Elsevier, vol. 65(C), pages 6-26.
    20. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    21. Abdurrahman Aydemir, 2011. "Immigrant selection and short-term labor market outcomes by visa category," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(2), pages 451-475, April.
    22. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    23. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    24. Barry Chiswick, 1999. "Are Immigrants Favorably Self-Selected?," American Economic Review, American Economic Association, vol. 89(2), pages 181-185, May.
    25. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    26. George J. Borjas & Rachel M. Friedberg, 2009. "Recent Trends in the Earnings of New Immigrants to the United States," Working Papers 2009-13, Brown University, Department of Economics.
    27. George J. Borjas, 2021. "The Slowdown in the Economic Assimilation of Immigrants: Aging and Cohort Effects Revisited Again," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 3, pages 31-65, World Scientific Publishing Co. Pte. Ltd..
    28. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
    29. repec:dau:papers:123456789/5377 is not listed on IDEAS
    30. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February.
    31. J. William Ambrosini & Giovanni Peri, 2012. "The Determinants and the Selection of Mexico–US Migrants," The World Economy, Wiley Blackwell, vol. 35(2), pages 111-151, February.
    32. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 - 2000," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 641-672, May.
    33. Bertoli, Simone & Brücker, Herbert, 2011. "Selective immigration policies, migrants' education and welfare at origin," Economics Letters, Elsevier, vol. 113(1), pages 19-22, October.
    34. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    35. Robert Kaestner & Ofer Malamud, 2014. "Self-Selection and International Migration: New Evidence from Mexico," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 78-91, March.
    36. Docquier, Frédéric & Faye, Ousmane & Pestieau, Pierre, 2008. "Is migration a good substitute for education subsidies?," Journal of Development Economics, Elsevier, vol. 86(2), pages 263-276, June.
    37. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760, Elsevier.
    38. Frédéric Docquier & B. Lindsay Lowell & Abdeslam Marfouk, 2009. "A Gendered Assessment of Highly Skilled Emigration," Population and Development Review, The Population Council, Inc., vol. 35(2), pages 297-321, June.
    39. Simone Bertoli, 2010. "Networks, Sorting and Self-selection of Ecuadorian Migrants," Annals of Economics and Statistics, GENES, issue 97-98, pages 261-288.
    40. repec:adr:anecst:y:2010:i:97-98:p:12 is not listed on IDEAS
    41. Daniel Chiquiar & Gordon H. Hanson, 2005. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 239-281, April.
    42. Chiswick, Barry R., 1999. "Are Immigrants Favorably Self-Selected? An Economic Analysis," Working Papers 147, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    43. David McKenzie & Hillel Rapoport, 2010. "Self-Selection Patterns in Mexico-U.S. Migration: The Role of Migration Networks," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 811-821, November.
    44. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    45. Mountford, Andrew, 1997. "Can a brain drain be good for growth in the source economy?," Journal of Development Economics, Elsevier, vol. 53(2), pages 287-303, August.
    46. Giorgio Bellettini & Carlotta Berti Ceroni, 2007. "Immigration Policy, Self‐selection, and the Quality of Immigrants," Review of International Economics, Wiley Blackwell, vol. 15(5), pages 869-877, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Can selective immigration policies backfire?
      by nawmsayn in ZeeConomics on 2014-11-08 20:31:20

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bertoli, Simone & Stillman, Steven, 2019. "All that glitters is not gold: Wages and education for US immigrants," Labour Economics, Elsevier, vol. 61(C).
    2. Stark, Oded & Byra, Lukasz & Casarico, Alessandra & Uebelmesser, Silke, 2017. "A critical comparison of migration policies: Entry fee versus quota," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 91-107.
    3. Riccardo Leoncini & Mariele Macaluso & Annalivia Polselli, 2024. "Gender segregation: analysis across sectoral dominance in the UK labour market," Empirical Economics, Springer, vol. 67(5), pages 2289-2343, November.
    4. Jimenez Mori, Raul, 2021. "Eliciting individual preferences for immigrants in the Dominican Republic. Results from two choice experiments," Journal of choice modelling, Elsevier, vol. 39(C).
    5. Rosso, Anna, 2019. "Emigrant selection and wages: The case of Poland," Labour Economics, Elsevier, vol. 60(C), pages 148-175.
    6. Björn NILSSON, 2019. "Education and migration: insights for policymakers," Working Paper 23ca9c54-061a-4d60-967c-f, Agence française de développement.
    7. Mariele Macaluso, 2022. "The influence of skill-based policies on the immigrant selection process," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 595-621, July.
    8. Riccardo Leoncini & Mariele Macaluso & Annalivia Polselli, 2023. "Gender Segregation: Analysis across Sectoral-Dominance in the UK Labour Market," Papers 2303.04539, arXiv.org, revised Dec 2023.
    9. Tani, Massimiliano, 2017. "Skilled Migration Policy and the Labour Market Performance of Immigrants," IZA Discussion Papers 11241, Institute of Labor Economics (IZA).
    10. Manish Pandey & James Townsend, 2017. "Prior host-country work experience and immigrant labor market outcomes: evidence from Canada," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-22, December.
    11. Anna Rosso, 2016. "Skill Transferability and Immigrant-Native Wage Gaps," Development Working Papers 405, Centro Studi Luca d'Agliano, University of Milano, revised 21 Oct 2016.
    12. Nejad, Maryam Naghsh & Schurer, Stefanie, 2022. "Cognitive and non-cognitive abilities of immigrants: New perspectives on migrant quality from a selective immigration country," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 107-124.
    13. repec:ces:ifodic:v:16:y:2018:i:1:p:50000000001952 is not listed on IDEAS
    14. Massimiliano Tani, 2018. "Using a Points System for Selecting Immigrants," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 16(01), pages 08-13, May.
    15. Zhang, Chao & Guan, Jiancheng, 2021. "Returnee policies in China: Does a strategy of alleviating the financing difficulty of returnee firms promote innovation?," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    16. Altangerel, Khulan, 2019. "Essays on immigration policy," Other publications TiSEM 954c6300-249e-496c-8cef-0, Tilburg University, School of Economics and Management.
    17. Marcenaro-Gutierrez, O.D. & Lopez-Agudo, L.A. & Henriques, C.O., 2021. "Are soft skills conditioned by conflicting factors? A multiobjective programming approach to explore the trade-offs," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 18-40.
    18. Spitzer, Yannay & Zimran, Ariell, 2018. "Migrant self-selection: Anthropometric evidence from the mass migration of Italians to the United States, 1907–1925," Journal of Development Economics, Elsevier, vol. 134(C), pages 226-247.
    19. Glitz, Albrecht & Rapoport, Hillel, 2024. "Introduction to the Labour Economics special issue on immigration economics," Labour Economics, Elsevier, vol. 87(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mariele Macaluso, 2022. "The influence of skill-based policies on the immigrant selection process," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 595-621, July.
    2. Simone Bertoli & Hillel Rapoport, 2015. "Heaven's Swing Door: Endogenous Skills, Migration Networks, and the Effectiveness of Quality-Selective Immigration Policies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 565-591, April.
    3. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    4. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    5. Tani, Massimiliano, 2017. "Skilled Migration Policy and the Labour Market Performance of Immigrants," IZA Discussion Papers 11241, Institute of Labor Economics (IZA).
    6. Tani, Massimiliano, 2018. "Selective immigration policies, occupational licensing, and the quality of migrants’ education-occupation match," GLO Discussion Paper Series 206, Global Labor Organization (GLO).
    7. Nejad, Maryam Naghsh & Schurer, Stefanie, 2022. "Cognitive and non-cognitive abilities of immigrants: New perspectives on migrant quality from a selective immigration country," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 107-124.
    8. Michael S. Rendall & Susan W. Parker, 2014. "Two Decades of Negative Educational Selectivity of Mexican Migrants to the United States," Population and Development Review, The Population Council, Inc., vol. 40(3), pages 421-446, September.
    9. Fernández-Huertas Moraga, Jesús, 2013. "Understanding different migrant selection patterns in rural and urban Mexico," Journal of Development Economics, Elsevier, vol. 103(C), pages 182-201.
    10. Escamilla-Guerrero, David & López-Alonso, Moramay, 2023. "Migrant Self-Selection and Random Shocks: Evidence from the Panic of 1907," The Journal of Economic History, Cambridge University Press, vol. 83(1), pages 45-85, March.
    11. Biavaschi, Costanza & Elsner, Benjamin, 2013. "Let's Be Selective about Migrant Self-Selection," IZA Discussion Papers 7865, Institute of Labor Economics (IZA).
    12. Biavaschi, Costanza & Burzyński, Michał & Elsner, Benjamin & Machado, Joël, 2020. "Taking the skill bias out of global migration," Journal of Development Economics, Elsevier, vol. 142(C).
    13. Tani, Massimiliano, 2018. "Selective Immigration, Occupational Licensing, and Labour Market Outcomes of Foreign-Trained Migrants," IZA Discussion Papers 11370, Institute of Labor Economics (IZA).
    14. Sara Binassi & Giovanni Guidetti & Mariele Macaluso & Giulio Pedrini, 2021. "Assessing selection patterns and wage differentials of high-skilled migrants. Evidence from Italian graduates working abroad," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 0(113), pages 83-115.
    15. Parag Mahajan & Dean Yang, 2020. "Taken by Storm: Hurricanes, Migrant Networks, and US Immigration," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 250-277, April.
    16. Milo Bianchi, 2013. "Immigration Policy and Self-Selecting Migrants," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(1), pages 1-23, February.
    17. Bertoli, Simone & Stillman, Steven, 2019. "All that glitters is not gold: Wages and education for US immigrants," Labour Economics, Elsevier, vol. 61(C).
    18. Bertoli, S. & Fernández-Huertas Moraga, J. & Ortega, F., 2013. "Crossing the border: Self-selection, earnings and individual migration decisions," Journal of Development Economics, Elsevier, vol. 101(C), pages 75-91.
    19. Cristian Bartolucci & Mathis Wagner & Claudia Villosio, 2013. "Who Migrates and Why?," Carlo Alberto Notebooks 333, Collegio Carlo Alberto.
    20. Chiara Falco, 2015. "Education and migration: empirical evidence from Ecuador," Working Papers 297, University of Milano-Bicocca, Department of Economics, revised Mar 2015.

    More about this item

    Keywords

    selective policies; self-selection; migrants' quality;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • K37 - Law and Economics - - Other Substantive Areas of Law - - - Immigration Law
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp9538. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.