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The Role of Income and Immigration Policies in Attracting International Migrants

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  • Ortega, Francesc

    (Queens College, CUNY)

  • Peri, Giovanni

    (University of California, Davis)

Abstract

This paper makes two contributions to the literature on the determinants of international migration flows. First, we compile a new dataset on annual bilateral migration flows covering 15 OECD destination countries and 120 sending countries for the period 1980-2006. We also collect data on time-varying immigration policies that regulate the entry of immigrants for our destination countries over this period. Second, we extend the empirical model of migration choice across multiple destinations developed by Grogger and Hanson (2011) by allowing for unobserved individual heterogeneity between migrants and non-migrants. Our estimates show that international migration flows are highly responsive to income per capita at destination. This elasticity is twice as high for within-EU migration, reflecting the higher degree of labor mobility within the European Union. We also find that tightening of laws regulating immigrant entry reduce rapidly and significantly their flow.

Suggested Citation

  • Ortega, Francesc & Peri, Giovanni, 2012. "The Role of Income and Immigration Policies in Attracting International Migrants," IZA Discussion Papers 6655, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6655
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    1. > International Economics > International Migration

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    Cited by:

    1. Francesc Ortega & Giovanni Peri, 2016. "Openness and income: The roles of trade and migration," World Scientific Book Chapters, in: The Economics of International Migration, chapter 10, pages 309-329, World Scientific Publishing Co. Pte. Ltd..
    2. Amelia Aburn & Dennis Wesselbaum, 2017. "Gone with the Wind: International Migration," Working Papers 1708, University of Otago, Department of Economics, revised Apr 2017.
    3. Soudalay Phommahaxay & Peerasit Kamnuansipla & John Draper & Phouthakkannha Nantharath & Eungoo Kang, 2019. "Preparedness of Lao People¡¯s Democratic Republic to Implement ASEAN Common Visa (ACV)," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 419-430, December.
    4. William Betz & Nicole Simpson, 2013. "The effects of international migration on the well-being of native populations in Europe," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    5. Felbermayr, Gabriel & Grossmann, Volker & Kohler, Wilhelm, 2012. "Migration, International Trade and Capital Formation: Cause or Effect ?," FSES Working Papers 436, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    6. Di Maio, Michele & Leone Sciabolazza, Valerio & Molini, Vasco, 2023. "Migration in Libya: A spatial network analysis," World Development, Elsevier, vol. 163(C).
    7. Giovanni Peri & Francesc Ortega, 2012. "The Effect of Trade and Migration on Income," Working Papers 115, University of California, Davis, Department of Economics.
    8. Eran Yashiv, 2021. "Moving from a Poor Economy to a Rich One: A Job Tasks Approach," RF Berlin - CReAM Discussion Paper Series 2119, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    9. Ortega, Francesc & Peri, Giovanni, 2013. "Migration, Trade and Income," IZA Discussion Papers 7325, Institute of Labor Economics (IZA).
    10. Alonso José Antonio & Arteaga Francisco Javier Santos, 2020. "International migratory agreements: the paradox of adverse interest," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-29, January.

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    More about this item

    Keywords

    labor movements; international migration; immigration policies;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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