Selection and network effects—Migration flows into OECD countries 1990–2000

Pedersen, Peder J.; Pytlíková, Mariola; Smith, Nina

doi:10.1016/j.euroecorev.2007.12.002

Cited by 400 publications

(446 citation statements)

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“…As an alternative, some studies divide the immigrant flow by the population in the origin or destination countries (see e.g. Fertig, 2001;Boeri et al, 2002;Pedersen et al, 2008;Mayda, 2010), but this only partly removes problems of scale. Only dividing by the population in both sending and receiving countries or taking the natural logarithm entirely solves the problem (see Lewer and Van den Berg, 2008;Warin and Svaton, 2008;Ortega and Peri, 2009).…”

Section: A Dynamic Model Of Migrationmentioning

confidence: 99%

“…Following Todaro (1969), Hatton defines expected income as the wage (w) times the employment rate (e), with income uncertainty being due to uncertain employment prospects. To take into account the welfare magnet theory presented in Borjas (1987Borjas ( , 1999, we extend this definition of expected income by adding the provision of public services (ps) in the form of social protection benefits 1 (see also Pedersen et al, 2008;Warin and Svaton, 2008). Assuming a logarithmic utility function and a binomial distribution to characterize the probability of employment, equation (1) can be rewritten as…”

Section: A Dynamic Model Of Migrationmentioning

confidence: 99%

“…Bertocchi and Strozzi, 2008;Mayda, 2010) or the migrant stock (see e.g. Hooghe et al, 2008;Lewer and Van den Berg, 2008;Pedersen et al, 2008;Warin and Svaton, 2008), with both variables typically being argued to capture network effects 4 . Laber (1972) has already highlighted that it is not clear whether these dynamic terms represent network effects or rather capture a partial adjustment…”

Section: A Dynamic Model Of Migrationmentioning

confidence: 99%

“…Due to a lack of real wage data for the set of origin countries, wages are approximated by per capita gross domestic product (see also Fertig, 2001;Pedersen et al, 2008;Mayda, 2010), expressed in current dollars purchasing power parities to correct for differences in the evolution in the cost of living between countries. Data on GDP per capita are taken from the Penn World Tables 6.3.…”

Section: -2007mentioning

confidence: 99%

“…Recent studies that estimate a three-way panel data model are Lewer and Van den Berg (2008), Pedersen et al (2008), Mayda (2010) for immigration to OECD countries or Gallardo-Sejas et al (2006), Hooghe et al (2008), Warin and Svaton (2008) for immigration to Europe. Second, none of the above mentioned studies (except Fertig, 2001) allow for the rich migration dynamics present in Hatton's (1995) model, i.e.…”

mentioning

confidence: 99%

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

2012

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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.JEL Classification: F22, J61, C33

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Section: A Dynamic Model Of Migrationmentioning

confidence: 99%

Section: A Dynamic Model Of Migrationmentioning

confidence: 99%

Section: A Dynamic Model Of Migrationmentioning

confidence: 99%

Section: -2007mentioning

confidence: 99%

mentioning

confidence: 99%

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

2012

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An Integrated Model

Levy¹

2016

Global Dynamics

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Macroeconomic and financial implications of multi‐dimensional interdependencies between OECD countries

Sevinç

Flores

2020

Int. J Fin Econ

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This paper uses a complex structure of factors of exposure to international shocks for the analysis of regional and inter‐regional effects of a variety of financial shocks across Organization for Economic Co‐operation and Development (OECD) economies. Those factors (trade, finance, migration and others) are incorporated in a coherent and comparable scheme which, based on observed data, describes pair‐wise, directionally asymmetric exposures to foreign economies in the sample. Through a global vector auto‐regressive setting, a systemic approach characterizes our modelling by the means of which several standardized shocks are simulated varying the region of origin to compare their effects and spillovers. In the depicted map of risks, the shocks are of particular relevance to both wholesale and retail credit markets, stock and commodities markets and also for the management of monetary and fiscal policies in open economies. The diversity of responses between OECD regions is useful to understand the asymmetric impacts and degrees of relative vulnerability towards disturbances in international markets. A subset of Eurozone countries, for example, consistently shows significant sensitivity to foreign shocks. Other Eurozone countries experience a lower degree of imported volatility while Asia‐Pacific appears to be more resilient to shocks in OECD regions. In turn, the significance of the impacts of shocks in the North American Free Trade Agreement region is large enough for them to be close representations of global shocks.

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Selection and network effects—Migration flows into OECD countries 1990–2000

Cited by 400 publications

References 13 publications

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

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

An Integrated Model

Macroeconomic and financial implications of multi‐dimensional interdependencies between OECD countries

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