Diasporas

44 Pages Posted: 15 Apr 2009  

Michel A. R. Beine

University of Luxemburg; CESifo (Center for Economic Studies and Ifo Institute)

Frédéric Docquier

Catholic University of Louvain (UCL); CREAM, Centre for Research on Environmental Appraisal & Management, UK; IZA Institute of Labor Economics

Caglar Ozden

World Bank - Research Department

Multiple version iconThere are 2 versions of this paper

Date Written: April 1, 2009

Abstract

Migration flows are shaped by a complex combination of self-selection and out-selection mechanisms. In this paper, we analyze how existing diasporas (the stock of people born in a country and living in an another one) affect the size and human-capital structure of current migration flows. Our analysis exploits a bilateral data set on international migration by educational attainment from 195 countries to 30 OECD countries in 1990 and 2000. Based on simple micro-foundations and controlling for various determinants of migration, we find diasporas increase migration flows, lower their average educational level and lead to higher concentration of low-skill migrants. Interestingly, diasporas explain majority of the variability of migration flows and selection. This suggests that, without changing the generosity of family reunion programs, education-based selection rules are likely to have moderate impact. Our results are highly robust to the econometric techniques, accounting for the large proportion of zeros and endogeneity problems.

Keywords: migration, self-selection, network/diaspora externalities

JEL Classification: F22, O15

Suggested Citation

Beine, Michel A. R. and Docquier, Frédéric and Ozden, Caglar, Diasporas (April 1, 2009). CESifo Working Paper Series No. 2607. Available at SSRN: https://ssrn.com/abstract=1379118

Michel A. R. Beine (Contact Author)

University of Luxemburg ( email )

L-1511 Luxembourg
Luxembourg

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Frédéric Docquier

Catholic University of Louvain (UCL) ( email )

Place Montesquieu 3
Louvain-la-Neuve, 1348
Belgium

CREAM, Centre for Research on Environmental Appraisal & Management, UK

University of Newcastle
NE1 7RU Newcastle Upon Tyne
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Çaglar Özden

World Bank - Research Department ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/cozden

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