Competition for People as Drivers of Future Economic Growth: European People’s Attitudes Towards Migration

Discussions on Estonian Economic Policy No. 2/2011

14 Pages Posted: 5 Feb 2012

See all articles by Tiiu Paas

Tiiu Paas

University of Tartu - Faculty of Economics and Business Administration

Vivika Halapuu

University of Tartu

Date Written: November 1, 2011

Abstract

The paper follows an argument that the key elements of global competition are no longer trade of goods and services and flows of capital, but the competition for people. We claim that economic growth is driven by educated and innovative people, who prefer to live and migrate to countries that are diverse, tolerant and open to newcomers. Countries should compete for educated and diverse people and therefore a positive attitude to migration is an important argument for future economic growth. We analysed peoples’ attitudes to migration in 23 European countries based on the micro-data of the European Social Survey fourth round database. The outcomes of the empirical analysis show that European peoples’ attitudes toward immigrants vary depending on 1) personal characteristics of the respondents; 2) country’s characteristics; 3) peoples’ attitudes towards countries’ institutions. The results of the study provide empirical evidence based grounds for development of policy measures for improving peoples’ attitudes to immigration and to ethnically diverse human capital that support future economic growth.

Keywords: attitudes, immigration, tolerance, economic growth, policy implications

JEL Classification: O40, R11, C31, P51

Suggested Citation

Paas, Tiiu and Halapuu, Vivika, Competition for People as Drivers of Future Economic Growth: European People’s Attitudes Towards Migration (November 1, 2011). Discussions on Estonian Economic Policy No. 2/2011, Available at SSRN: https://ssrn.com/abstract=1998058 or http://dx.doi.org/10.2139/ssrn.1998058

Tiiu Paas (Contact Author)

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Rd. 4-A214
Tartu 51009, 51009
Estonia

Vivika Halapuu

University of Tartu ( email )

Ülikooli 18
Tartu 50090, 50090
Estonia

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