Immigration Policy Index
CERGE-EI Working Paper Series No. 523
55 Pages Posted: 5 Jan 2015
Date Written: January 1, 2015
I construct an immigration policy index which is heterogeneous across destination-origin country pairs and variant over time. This index is based on three types of entry visa restrictions: visa required, visa not required for short stays and visa not required at all. When estimated in levels, visa exempt country pairs account for around 15% more migrants than their counterfactual. I show that the effects of migration determinants vary by the type of visa restrictions. Further, I identify country pairs which changed their visa regime during 2000-2010 and find that the weakening of visa policy is associated with a 10% increase in migrant stocks and a significant shift toward male and less skilled migration from policy affected source countries. In contrast, the tightening of visa policy is not related to a significant change in migrant stocks, their gender or skill composition.
Keywords: immigration policy; visa; difference-in-difference estimation; policy quasi-experiment; group heterogeneity; diaspora effect
JEL Classification: F22; K37; F66; R23
Suggested Citation: Suggested Citation