Want Freedom, Will Travel: Emigrant Self-Selection According to Institutional Quality

38 Pages Posted: 2 Jun 2016

See all articles by Maryam Naghsh Nejad

Maryam Naghsh Nejad

IZA Institute of Labor Economics; University of Technology Sydney (UTS)

Andrew T. Young

Texas Tech University - Rawls College of Business

Multiple version iconThere are 2 versions of this paper

Date Written: March 2016

Abstract

We investigate emigrant self-selection according to institutional quality using up to 3,566 observations on bilateral migration flows from 77 countries over the 1990-2000 period. We relate these flows to differences in political and economic institutions. We improve and expand upon previous studies by (i) examining decade-long migration flows that (ii) include flows not only to OECD countries but also to non-OECD countries; also (iii) utilizing an estimation method that takes into account the information in zero value migration flows and (iv) examining not only total migration flows but also college-educated and non-college educated subsamples separately. We find that economic freedoms are a significant pull factor for potential migrants. Once economic freedoms are controlled for, measures of political institutions do not always enter significantly into our estimations. Results are similar for college- and non-college-educated subsamples. Improvements in legal systems and property rights appear to be the strongest pull factor for potential migrants.

Keywords: emigration, institutions, democracy, economic freedom, brain drain

JEL Classification: O43, F22, P51

Suggested Citation

Naghsh Nejad, Maryam and Young, Andrew T., Want Freedom, Will Travel: Emigrant Self-Selection According to Institutional Quality (March 2016). Available at SSRN: https://ssrn.com/abstract=2787956 or http://dx.doi.org/10.2139/ssrn.2787956

Maryam Naghsh Nejad

IZA Institute of Labor Economics ( email )

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

University of Technology Sydney (UTS) ( email )

15 Broadway, Ultimo
PO Box 123
Sydney, NSW 2007
Australia

Andrew T. Young (Contact Author)

Texas Tech University - Rawls College of Business ( email )

Lubbock, TX 79409
United States

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