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The European Crisis and Migration to Germany: Expectations and the Diversion of Migration Flows

  • Brücker, Herbert
  • Bertoli, Simone
  • Fernández-Huertas Moraga, Jesús

The analysis of how the economic crisis in Europe has reshaped migration flows faces two challenges: (i) the confounding influence of correlated changes in the attractiveness of alternative destinations, and (ii) the role of rapidly changing expectations about the evolution of the economic conditions in various countries. This paper addresses the first challenge by controlling for multilateral resistance to migration, and the second one by incorporating 10-year bond yields as an explanatory variable in a study of European bilateral migration flows to Germany between 2006 and 2012. We show that, while expectations and current economic conditions at origin are significant determinants of migration, diversion effects account for 78 percent of the observed increase in German gross migration inflows.

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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79693.

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Date of creation: 2013
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Handle: RePEc:zbw:vfsc13:79693
Contact details of provider: Web page: http://www.socialpolitik.org/
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