Article (Scientific journals)
Dissecting Network externalities in International Migration
Beine, Michel; Docquier, Frederic; Ozden, Caglar
2015In Journal of Demographic Economics, 81 (4), p. 379-408
Peer reviewed
 

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Keywords :
migration; network/diaspora externalities; family reunification
Abstract :
[en] Migrant networks play an important role in explaining the size and structure of migration flows. They affect the private costs and benefits of migration (assimilation channel) and lower legal entry barriers through family reunification programs (policy channel). This paper presents a microfounded identification strategy allowing to disentangle the relative importance of these two channels. Our empirical analysis exploits U.S. immigration data by metropolitan area and country of origin. We first confirm that the overall network externality is strong (the elasticity of migration flows to network size is around one). More interestingly, we show that only a quarter of this elasticity is accounted for by the policy channel for the 1990-2000 period, and the magnitudes of the total network effect and the policy channel are greater for low-skilled migrants. Our results are strongly robust to sample selection, identification assumptions, and treatment for unobserved bilateral heterogeneity. Finally, the policy channel was stronger in the 1990s than in the 1980s, possibly reflecting the changes in the U.S. family reunification policy.
Disciplines :
International economics
Author, co-author :
Beine, Michel  ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Docquier, Frederic
Ozden, Caglar
External co-authors :
yes
Language :
English
Title :
Dissecting Network externalities in International Migration
Publication date :
2015
Journal title :
Journal of Demographic Economics
ISSN :
2054-0906
Publisher :
Cambridge University Press, Cambridge, United Kingdom
Volume :
81
Issue :
4
Pages :
379-408
Peer reviewed :
Peer reviewed
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since 27 March 2019

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