Migration

Visa policies and multilateral resistance to migration

Simone Bertoli, Jesús Fernández-Huertas Moraga, 28 January 2013

Migration policy is a pressing issue, but our empirical understanding of it is wanting. This column introduces new estimation techniques for identifying the impact of immigration policies. The novelty is to account for third-country effects since migrants have more options than staying home and moving to the hoped-for destination. Looking at bilateral policies in isolation misses this externality. Disregarding such ‘multilateral resistance to migration’ leads to an underestimation of the effect of bilateral migration policies, and thus potentially leading to severe policy mistakes.

Moving to Greenland in the face of global warming

Klaus Desmet, Esteban Rossi-Hansberg, 16 January 2013

There are two ways to deal with climate change: mitigation and adaptation. This column argues that in order to adapt, we need to take another look at an age-old coping mechanism: migration. Indeed, if overall hotter temperatures lower productivity in hot regions but raise productivity in what are currently cooler regions, the negative economic effects of climate change are likely to stem from frictions preventing the movement of people and goods. Without these frictions, adapting to climate change becomes that much easier. Climate change policy ought to aim at alleviating mobility frictions.

US votes on trade and migration

Paola Conconi, Giovanni Facchini, Max Friedrich Steinhardt, Maurizio Zanardi, 7 January 2013

As populations in rich nations continue to age and skill shortages begin to emerge, concern over getting immigration policy right is set to intensify. This column discusses new research on US policymaking, showing that many of the determinants of policymakers’ attitudes towards trade are also in operation when it comes to migration. Using the Heckscher-Ohlin model, it finds that US House members from districts where skilled labour is abundant are more likely to support both trade liberalisation and a more open policy for unskilled immigration.

Sparking off the magic of diasporas

Alireza Naghavi, Chiara Strozzi, 18 November 2012

Does emigration create a brain drain or – as commentators have recently been suggesting – do diasporas in fact represent a net brain gain? This column argues that if sending countries can protect intellectual property rights, they will foster the necessary diaspora knowledge networks to significantly help economic development in sending countries.

Do return migrants need their social capital for entrepreneurship?

Yves Zenou, Jackline Wahba, 19 August 2012

Are return migrants more likely to become entrepreneurs than non-migrants? This column, using data from Egypt, argues that although migrants lose their social networks whilst overseas, savings and human capital accumulation acquired abroad overcompensate for this loss. This makes return migrants more likely to start businesses.