The Trade Effects of Skilled versus Unskilled Migration

Doug R Nelson, Peter Egger and Maximilian von Ehrlich

No 9053, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In this paper, we assess the role of skilled versus unskilled migration for bilateral trade using a flexible reduced-form model where the stocks of skilled and unskilled migrants at the country-pair level are determined as endogenous continuous treatments. The impact of different levels of skilled and unskilled migration on the volume and structure of bilateral trade is identified in a quasi-experimental design. This is accomplished through a generalization of propensity score estimation procedures for a case of multivariate, multi-valued treatments whereof the bivariate continuous treatment model is a special case. We find evidence of a polarized impact of skill-specific migration on trade: highly concentrated skilled or unskilled migrants induce higher trade volumes than a balanced composition of the immigrant base. Regarding the structure of trade, we observe a polarization specifically for differentiated goods and for north-south trade. Both bits of evidence are consistent with a segregation of skill-specific immigrant networks and corresponding consumption patterns and effects on trade.

Keywords: Bilateral trade; Generalized propensity score estimation; Quasi-randomized experiments; Skilled vs. unskilled immigration (search for similar items in EconPapers)
JEL-codes: C14 C21 F14 F22 (search for similar items in EconPapers)
Date: 2012-07
New Economics Papers: this item is included in nep-int and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Journal Article: The trade effects of skilled versus unskilled migration (2020)
Working Paper: The trade effects of skilled versus unskilled migration (2020)
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