How do Migrants Choose Their Destination Country? An Analysis of Institutional Determinants

Abstract

We analyze the effects of socio-economic and institutional determinants, especially labor-market institutions and features of social protection systems, on migrants' location choices. Based on micro-data for France, Germany, the UK, and the USA, we study migration to one of these four countries using a multinomial choice framework. Our estimates confirm conventional results regarding wages, networks, and unemployment rates. In addition, we find that there are indications of "insider-outsider effects" for union coverage and unemployment benefits, while employment protection does not have a clear-cut impact on migration. Good education and health systems tend to attract migrants, while generous pension systems deter them.

Destination cities of European exchange students

“…In the literature on international migration it is suggested that people are attracted by countries rather than by particular localities, as individuals generally move to localities where there are job opportunities (e.g. Geis, Uebelmesser, & Werding, 2013;Hofmann, 2015;Moral-Pajares & Jiménez-Jiménez, 2014;Palmer & Pytliková, 2015). Nevertheless, we argue this might not hold true for exchange students.…”

Public beliefs in social mobility and high-skilled migration

“…Bauer et al, 2007;Pedersen et al, 2008;Beine et al, 2011). Borjas (1999a) shows that welfare systems have magnetic effects, while Geis et al (2013) indicate that labor-market institutions like employment protection and unionization determine the self-selection of migrants. Additionally, immigration policy is shaping the number of immigrants and their skill composition (cf.…”

International Portability of Health-Cost Cover: Mobility, Insurance, and Redistribution

“…However, existing systems of public health insurance or public health care conventionally insure current health costs and long-term health-status risks without risk-rating, and their funding often involves redistribution along several dimensions. The exit of a high-income, low-risk individual or the entry of a low-income, high-risk individual can therefore bring about financial losses or increased costs that impose a burden on other members of the same 10 In an empirical study, Geis et al (2008) show that quality of the health-care system in the destination country appears to attract migration, while they are unable to control for the cost of paying for health care in separation, i.e., as distinct from the negative effects of a more general "tax" measure. 11 For instance, Avato et al (2009, p. 455) point to the possibility that a lack of access to health care or health insurance (or lack of portability thereof) may drive migrants into working in the informal sector.…”