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Determinants and dynamics of migration to OECD countries in a three-dimensional panel framework

Ilse Ruyssen (UGent) , Gerdie Everaert (UGent) and Glenn Rayp (UGent)
(2014) EMPIRICAL ECONOMICS. 46(1). p.175-197
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Abstract
This paper investigates the determinants of bilateral immigrant flows to 19 OECD countries between 1998 and 2007 from both advanced and developing origin countries. We pay particular attention to dynamics by including both the lagged migrant flow and the migrant stock to capture partial adjustment and network effects. To correct for the dynamic panel data bias of the fixed effects estimator we use a bootstrap algorithm. Our results indicate that immigrants are primarily attracted by better income opportunities and higher growth rates abroad. Also short-run increases in the host country's employment rate positively affect migration from both advanced and developing countries. High public services, on the other hand, discourage migration from advanced countries but exert a pull on migration from developing sources, in line with the welfare state hypothesis. Finally, we find evidence for both partial adjustment and the presence of strong network effects. This confirms that both should be considered crucial elements of the migration model and that a correction for their joint inclusion is required.
Keywords
GRAVITY MODEL, IMMIGRATION, DATA MODELS, INTERNATIONAL MIGRATION, Network effects, Dynamic panel data model, Bias correction, PATTERNS, FLOWS, International migration, BIAS, INSTRUMENTS, SELECTION, ESTIMATORS

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Citation

Please use this url to cite or link to this publication:

Chicago
Ruyssen, Ilse, Gerdie Everaert, and Glenn Rayp. 2014. “Determinants and Dynamics of Migration to OECD Countries in a Three-dimensional Panel Framework.” Empirical Economics 46 (1): 175–197.
APA
Ruyssen, I., Everaert, G., & Rayp, G. (2014). Determinants and dynamics of migration to OECD countries in a three-dimensional panel framework. EMPIRICAL ECONOMICS, 46(1), 175–197.
Vancouver
1.
Ruyssen I, Everaert G, Rayp G. Determinants and dynamics of migration to OECD countries in a three-dimensional panel framework. EMPIRICAL ECONOMICS. Springer-Verlag; 2014;46(1):175–97.
MLA
Ruyssen, Ilse, Gerdie Everaert, and Glenn Rayp. “Determinants and Dynamics of Migration to OECD Countries in a Three-dimensional Panel Framework.” EMPIRICAL ECONOMICS 46.1 (2014): 175–197. Print.
@article{3126313,
  abstract     = {This paper investigates the determinants of bilateral immigrant flows to 19 OECD countries between 1998 and 2007 from both advanced and developing origin countries. We pay particular attention to dynamics by including both the lagged migrant flow and the migrant stock to capture partial adjustment and network effects. To correct for the dynamic panel data bias of the fixed effects estimator we use a bootstrap algorithm. Our results indicate that immigrants are primarily attracted by better income opportunities and higher growth rates abroad. Also short-run increases in the host country's employment rate positively affect migration from both advanced and developing countries. High public services, on the other hand, discourage migration from advanced countries but exert a pull on migration from developing sources, in line with the welfare state hypothesis. Finally, we find evidence for both partial adjustment and the presence of strong network effects. This confirms that both should be considered crucial elements of the migration model and that a correction for their joint inclusion is required.},
  author       = {Ruyssen, Ilse and Everaert, Gerdie and Rayp, Glenn},
  issn         = {1435-8921},
  journal      = {EMPIRICAL ECONOMICS},
  language     = {eng},
  number       = {1},
  pages        = {175--197},
  publisher    = {Springer-Verlag},
  title        = {Determinants and dynamics of migration to OECD countries in a three-dimensional panel framework},
  url          = {http://dx.doi.org/10.1007/s00181-012-0674-1},
  volume       = {46},
  year         = {2014},
}

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