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Hypothesis on immigration and welfare

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Abstract

The number of hypothesis trying to explain which are the reasons behind the decision to migrate to work into a developed country are diverse and at the same time, difficult to test due to the multiplicity of factors which affect it. This papers attempts to move forward trying to disentangle which are the socio-economic factors that explain the differences in the figures of immigrants in the OECD countries. We show empirical evidence about the determinants of the migratory flows to 17 OECD countries from 65 countries in the 1980-2000 period. Our results reveal the importance to differentiate the inflows composition by at least income in the origin countries. Thus, regarding inflows from non-high-income countries, the results suggest that there is a pull effect from monetary and not real income, and then, the welfare magnets hypothesis should be rejected. This group reacts more to the migratory policy than the inflows coming from high-income countries, although those policies designed to slow down the inflows have not been able, in the aggregate, to reduce them.

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  • 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.
    • Handle: RePEc:upf:upfgen:905
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    References listed on IDEAS

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    1. Rotte, Ralph & Vogler, Michael, 1998. "Determinants of International Migration: Empirical Evidence for Migration from Developing Countries to Germany," CEPR Discussion Papers 1920, C.E.P.R. Discussion Papers.
    2. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    3. Stark, Oded & Taylor, J Edward, 1991. "Migration Incentives, Migration Types: The Role of Relative Deprivation," Economic Journal, Royal Economic Society, vol. 101(408), pages 1163-1178, September.
    4. Mayda, Anna Maria, 2005. "International Migration: A Panel Data Analysis of Economic and Non-Economic Determinants," IZA Discussion Papers 1590, Institute of Labor Economics (IZA).
    5. Schneider, Friedrich, 2002. "The Size and Development of the Shadow Economies of 22 Transition and 21 OECD Countries," IZA Discussion Papers 514, Institute of Labor Economics (IZA).
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    Cited by:

    1. Francesc Ortega & Giovanni Peri, 2016. "The effect of income and immigration policies on international migration," World Scientific Book Chapters, in: The Economics of International Migration, chapter 11, pages 333-360, World Scientific Publishing Co. Pte. Ltd..
    2. Giovanni Peri & Francesc Ortega, 2012. "The Role of Income and Immigration Policies in Attracting International Migrants," Working Papers 143, University of California, Davis, Department of Economics.
    3. Ortega, Francesc & Peri, Giovanni, 2012. "The Role of Income and Immigration Policies in Attracting International Migrants," IZA Discussion Papers 6655, Institute for the Study of Labor (IZA).

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    More about this item

    Keywords

    International migrations; migratory policy;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J1 - Labor and Demographic Economics - - Demographic Economics

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