The effect of corruption on migration,1985–2000

Abstract

We examine the influence of corruption on migration for 111 countries between 1985 and 2000. Robust evidence indicates that corruption is among the push factors of migration, especially fuelling skilled migration. We argue that corruption tends to diminish the returns to education, which is particularly relevant to the better educated.

Does emigration reduce corruption?

“…It could be explained by reverse causality, as corruption may push people to go abroad (Dimant et al 2013;Poprawe 2015;Schneider 2015). In addition, unobserved characteristics of people (and/or households) may exist that are correlated with both their willingness to migrate and the propensity to bribe public officials.…”

The role of corruption in reintegration: experiences of Iraqi Kurds upon return from Europe

“…An embryonic literature has started to examine this nexus, viewing corruption as a differentiating factor between origin and destination locations. The research has so far focused mainly on immigrant integration, remittances and emigration decisions (Ariu and Squicciarini 2013;Barr and Serra 2010;Cooray and Schneider 2014;Dimant, Krieger, and Meierrieks 2013;Fisman and Miguel 2007;Ivlevs and King 2014). By comparison, relatively little attention has been devoted to links between corruption and post-return reintegration.…”

Does corruption promote emigration?

“…This cronyism can lead to higher levels of unemployment and lower returns to human capital (for example, if vacancies are not filled and people with the right qualifications are not hired because they lack the relevant contacts). This in turn slows economic growth and acts as a push factor for emigration, especially for the skilled labor force [2]. This brain drain can trigger a vicious cycle for a country as the emigration of highly-educated individuals further slows economic growth and slower growth encourages more emigration.…”

“…Thus, corruption can lower the stock of human capital and reduce the returns to education by slowing growth, generating unemployment and underemployment, increasing inequality, and reducing welfare [2]. In general, it can be said that corrupt countries provide their citizens with poorer working and living conditions, creating incentives for people, especially well-educated workers, to migrate to less corrupt countries [1].…”

“…This favoritism reduces the returns to human capital investment and increases the rate of unemployment, lowering the returns to human capital, making it less attractive for workers to stay in a country. By lowering the returns to education, corruption can slow growth and become a push factor for emigration [2].…”