A Global View of Cross-Border Migration

Julian di Giovanni, Andrei Levchenko and Francesc Ortega

No 1218, CReAM Discussion Paper Series from Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London

Abstract: This paper evaluates the welfare impact of observed levels of migration and remittances in both origins and destinations, using a quantitative multi- sector model of the global economy calibrated to aggregate and firm-level data on 60 developed and developing countries. Our framework accounts jointly for origin and destination characteristics, as well as the inherently multi-country nature of both migration and other forms of integration, such as international trade and remittance flows. In the presence of firm heterogeneity and imperfect competition larger countries enjoy a greater number of varieties and thus higher welfare, all else equal. Because of this effect, natives in countries that received a lot of migration – such as Canada or Australia – are better off. The remaining natives in countries with large emigration flows – such as Jamaica or El Salvador – are also better off due to migration, but for a different reason: remittances. The quantitative results show that the welfare impact of observed levels of migration is substantial, at about 5 to 10% for the main receiving countries and about 10% for the main sending countries.

Keywords: Migration; Remittances; International Trade; Welfare (search for similar items in EconPapers)
JEL-codes: F12 F15 F22 F24 (search for similar items in EconPapers)
Date: 2012-05
New Economics Papers: this item is included in nep-int and nep-mig
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https://www.cream-migration.org/publ_uploads/CDP_18_12.pdf (application/pdf)

Related works:
Journal Article: A GLOBAL VIEW OF CROSS-BORDER MIGRATION (2015)
Working Paper: A Global View of Cross-Border Migration (2014)
Working Paper: A Global View of Cross-Border Migration (2014)
Working Paper: A global view of cross-border migration (2014)
Working Paper: A Global View of Cross-Border Migration (2012)
Working Paper: A Global View of Cross-Border Migration (2012)
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