IDEAS home Printed from https://ideas.repec.org/p/bdm/wpaper/2020-07.html
   My bibliography  Save this paper

North-North Migration and Agglomeration in the European Union 15

Author

Listed:
  • Costa Daniela
  • Rodriguez Maria Jose

Abstract

This paper provides evidence on migration of workers within the European Union 15 (EU15), disaggregated by occupation. Using the European Labor Force Survey from 1983-2013, we find that in high-educated occupations, EU15 workers move to EU15 countries where their occupation is relatively more abundant among natives. This is at odds with traditional models of migration. We argue that a different framework is more suitable to analyze migration flows across highly educated highincome countries. In particular, we develop a model with external economies of scale that generates agglomeration of highly educated labor. The main implication of the model is that workers of higheducated occupations migrate to countries that are abundant in labor of their same occupation, in accordance with the data.

Suggested Citation

  • Costa Daniela & Rodriguez Maria Jose, 2020. "North-North Migration and Agglomeration in the European Union 15," Working Papers 2020-07, Banco de México.
  • Handle: RePEc:bdm:wpaper:2020-07
    as

    Download full text from publisher

    File URL: https://www.banxico.org.mx/publications-and-press/banco-de-mexico-working-papers/%7BFF784992-7583-B64E-9426-20545BE3CAE8%7D.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    2. John S. Chipman, 1970. "External Economies of Scale and Competitive Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 347-385.
    3. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    4. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    5. Alexander Haupt & Silke Uebelmesser, 2010. "Integration, Mobility, and Human Capital Formation," CESifo Working Paper Series 3190, CESifo.
    6. Cattaneo, Cristina & Fiorio, Carlo V. & Peri, Giovanni, 2013. "What Happens to the Careers of European Workers When Immigrants "Take Their Jobs"?," IZA Discussion Papers 7282, Institute of Labor Economics (IZA).
    7. Cristina Cattaneo & Carlo Fiorio & Giovanni Peri, 2013. "Immigration and careers of European workers: effects and the role of policies," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-26, December.
    8. 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.
    9. 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..
    Full references (including those not matched with items on IDEAS)

    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. Hanson, Gordon & Liu, Chen, 2023. "Immigration and occupational comparative advantage," Journal of International Economics, Elsevier, vol. 145(C).
    2. Kim, Jun Sung & Lee, Jongkwan, 2019. "The role of intergenerational mobility in internal migration," Economic Modelling, Elsevier, vol. 81(C), pages 1-15.
    3. 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.
    4. Bertoli, Simone & Dequiedt, Vianney & Zenou, Yves, 2016. "Can selective immigration policies reduce migrants' quality?," Journal of Development Economics, Elsevier, vol. 119(C), pages 100-109.
    5. Steinberg, Daniel, 2017. "Resource shocks and human capital stocks – Brain drain or brain gain?," Journal of Development Economics, Elsevier, vol. 127(C), pages 250-268.
    6. Gordon Hanson & Chen Liu & Craig McIntosh, 2017. "The Rise and Fall of U.S. Low-Skilled Immigration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(1 (Spring), pages 83-168.
    7. Jan Eeckhout & Christoph Hedtrich & Roberto Pinheiro, 2021. "IT and Urban Polarization," Working Papers 21-18, Federal Reserve Bank of Cleveland.
    8. Matthias Parey & Jens Ruhose & Fabian Waldinger & Nicolai Netz, 2017. "The Selection of High-Skilled Emigrants," The Review of Economics and Statistics, MIT Press, vol. 99(5), pages 776-792, December.
    9. Martin Junge & Martin D. Munk & Panu Poutvaara, 2013. "International Migration of Couples," Norface Discussion Paper Series 2013018, Norface Research Programme on Migration, Department of Economics, University College London.
    10. Stolz, Yvonne & Baten, Joerg, 2012. "Brain drain in the age of mass migration: Does relative inequality explain migrant selectivity?," Explorations in Economic History, Elsevier, vol. 49(2), pages 205-220.
    11. Ilpo Kauppinen & Panu Poutvaara, 2012. "Preferences for Redistribution among Emigrants from a Welfare State," ifo Working Paper Series 120, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    12. Michèle V. K. Belot & Timothy J. Hatton, 2012. "Immigrant Selection in the OECD," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1105-1128, December.
    13. Jesus Fernández-Huertas Moraga, 2008. "Wealth constraints, skill prices or networks: what determines emigrant selection?," Working Papers 346, Barcelona School of Economics.
    14. Chein, Flávia & Assunção, Juliano Junqueira, 2016. "How does Emigration affect Labor Markets? Evidence from Road Construction in Brazil," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 36(2), November.
    15. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2004. "Selection or Network Effects? Migration Flows into 27 OECD Countries, 1990-2000," IZA Discussion Papers 1104, Institute of Labor Economics (IZA).
    16. Girsberger, Esther Mirjam & Méango, Romuald & Rapoport, Hillel, 2020. "Regional migration and wage inequality in the West African economic and monetary union," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 385-404.
    17. Cevat Giray Aksoy & Panu Poutvaara, 2019. "Refugees' and Irregular Migrants' Self-Selection into Europe: Who Migrates Where?," CESifo Working Paper Series 7781, CESifo.
    18. Edouard Ribes, 2021. "Scoping the transformation of the professional services industry," Working Papers hal-01889350, HAL.
    19. Simone Bertoli & Jesus Fernandez-Huertas Moraga & Francesc Ortega, 2011. "Immigration Policies and the Ecuadorian Exodus," The World Bank Economic Review, World Bank, vol. 25(1), pages 57-76, March.
    20. Bertoli, Simone, 2010. "The informational structure of migration decision and migrants self-selection," Economics Letters, Elsevier, vol. 108(1), pages 89-92, July.

    More about this item

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

    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:bdm:wpaper:2020-07. 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: Subgerencia de desarrollo de sistemas (email available below). General contact details of provider: https://edirc.repec.org/data/bangvmx.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.