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A Global View of Cross-Border Migration

Julian di Giovanni, Andrei Levchenko and Francesc Ortega

No 627, Working Papers from Research Seminar in International Economics, University of Michigan

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)
Pages: 47 pages
Date: 2012-05-24
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://www.fordschool.umich.edu/rsie/workingpapers/Papers626-650/r627.pdf

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