The causes and effects of international labor mobility: evidence from OECD countries 1980-2005

"This paper contains three important contributions to the literature on international migrations. First, it compiles a new dataset on migration flows and stocks and on immigration laws for 14 OECD destination countries and 74 sending countries for each year over the period 1980-2005. Second, it...

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Main Authors: Ortega, Francesc, Peri, Giovanni
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Munich 2009
MPRA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19178116124919963989-The-causes-and-effects-of-inte.htm
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author Ortega, Francesc
Peri, Giovanni
author_facet Ortega, Francesc
Peri, Giovanni
collection Library items
description "This paper contains three important contributions to the literature on international migrations. First, it compiles a new dataset on migration flows and stocks and on immigration laws for 14 OECD destination countries and 74 sending countries for each year over the period 1980-2005. Second, it extends the empirical model of migration choice across multiple destinations, developed by Grogger and Hanson (2008), by allowing for unobserved individual heterogeneity between migrants and non-migrants. We use the model to derive a pseudo-gravity empirical specification of the economic and legal determinants of international migration. Our estimates show that bilateral migration flows are increasing in the income per capita gap between origin and destination. We also find that bilateral flows decrease significantly when the destination countries adopt stricter immigration laws. Third, we estimate the impact of immigration flows on employment, investment and productivity in the receiving OECD countries using as instruments the "push" factors only in the gravity equation. We find that immigration increases employment one for one, implying no crowding-out of natives. In addition, investment responds rapidly and vigorously, and total factor productivity is not affected. These results imply that immigration increases the total GDP of the receiving country in the short-run one-for-one, without affecting average wages or labor productivity. We also find that the effects of immigration are less beneficial when the receiving economy is in bad economic times."
format TEXT
geographic OECD countries
id 19178116124919963989_7cdb0b772fd64ff69328f23290cc042e
institution ETUI-European Trade Union Institute
is_hierarchy_id 19178116124919963989_7cdb0b772fd64ff69328f23290cc042e
is_hierarchy_title The causes and effects of international labor mobility: evidence from OECD countries 1980-2005
language English
physical 46 p.
Digital
publishDate 2009
publisher Munich
MPRA
spellingShingle Ortega, Francesc
Peri, Giovanni
employment
investment
migration
productivity
statistics
The causes and effects of international labor mobility: evidence from OECD countries 1980-2005
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=114664693284
title The causes and effects of international labor mobility: evidence from OECD countries 1980-2005
topic employment
investment
migration
productivity
statistics
url https://www.labourline.org/KENTIKA-19178116124919963989-The-causes-and-effects-of-inte.htm