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How do Migrants Choose their Destination Country? An Analysis of Institutional Determinants

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  • Wido Geis
  • Silke Uebelmesser
  • Martin Werding

Abstract

For a long time, migration has been subject to intensive economic research. Nevertheless, empirical evidence regarding the determinants of migration still appears to be incomplete. In this paper, we analyze the effects of socio-economic and institutional determinants, especially labor-market institutions, on migrants' choices. Based on a large data set constructed from micro-data for France, Germany, the UK and the US, we study their decisions to migrate to one of the four countries using a Multinomial Choice framework. Our estimates confirm a number of conventional results such as positive effects of wages and immigrant networks and negative effects of unemployment rates. In addition, we find that employment protection, union coverage and unemployment benefits have positive effects on migration. Also good education and health systems tend to attract migrants, while generous pension systems may deter them. Based on separate estimations for high- and low-skilled migrants, there is evidence that the effects of labor-market institutions differ across skill groups.

Suggested Citation

  • Wido Geis & Silke Uebelmesser & Martin Werding, 2008. "How do Migrants Choose their Destination Country? An Analysis of Institutional Determinants," CESifo Working Paper Series 2506, CESifo.
    • Handle: RePEc:ces:ceswps:_2506
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    More about this item

    Keywords

    migration; labour-market institutions; micro-data; Multinomial Choice;
    All these keywords.

    JEL classification:

    • A00 - General Economics and Teaching - - General - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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