Why do people from wealthy countries migrate?

Aziz, Nusrate, Chowdhury, Murshed, and Cooray, Arusha (2022) Why do people from wealthy countries migrate? European Journal of Political Economy, 73. 102156.

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Abstract

This study estimates the role of governance and institutions in bilateral migration between countries in the Organization of Economic Cooperation and Development (OECD) over the period 1996 to 2016. We estimate an extended random utility model of migration using pooled OLS, fixed effects, 2SLS, and PPML estimators. Our findings indicate that institutional quality plays a significant role in bilateral migration between the OECD countries. Political institutions are found to play a more important role compared to economic institutions. We also examine the moderating role of migration policy in fostering the nexus between the quality of institutions and bilateral migration, using three measures: the Migration Policy Index (MPI), and sub-sample analyses using both top OECD to OECD migration destinations and Schengen area countries. The Schengen country specific sub-sample analysis shows that if migration barriers are withdrawn, bilateral institutional quality differences lead to higher migration. However, estimated results based on the MPI and top OECD to OECD migration destinations do not show a significant role for pro-migration policy in strengthening the relationship between institutions and migration. The results are robust to different estimation methods, sub-sample analyses, and alternative specifications of the empirical model.

Item ID: 72930
Item Type: Article (Research - C1)
ISSN: 1873-5703
Keywords: Bilateral migration, OECD countries, Quality of political and economic institutions, Random utility model
Copyright Information: © 2021 Elsevier B.V. All rights reserved.
Date Deposited: 08 Aug 2022 06:19
FoR Codes: 38 ECONOMICS > 3801 Applied economics > 380112 Macroeconomics (incl. monetary and fiscal theory) @ 100%
SEO Codes: 15 ECONOMIC FRAMEWORK > 1502 Macroeconomics > 150207 Macro labour market issues @ 50%
15 ECONOMIC FRAMEWORK > 1502 Macroeconomics > 150299 Macroeconomics not elsewhere classified @ 50%
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