Arbeitspapier

Institutions and the Location Decisions of Highly Skilled Migrants to Europe

This paper investigates the economic, labor market and institutional factors that make regions and countries attractive for highly skilled migrants vis-`a-vis lowskill migrants. Based on micro-data for 11 EU countries, a discrete choice model estimated at the NUTS-2 level shows that location decisions are not only determined by factors related to earnings opportunities, distance, networks, common language and colonial relationships, but also by institutional factors such as migration policy, the income tax system, or labor market institutions; it also lends some support to the welfare magnet hypothesis: a higher unemployment replacement rate increases the attractiveness of a country. The empirical analysis however reveals only minor differences in the effects of institutions on location decisions by skill level, limiting the scope for policy makers to affect the skill composition of migration.

Language
Englisch

Bibliographic citation
Series: WWWforEurope Working Paper ; No. 78

Classification
Wirtschaft
International Migration
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
Subject
Highly skilled migration
regional location decisions
institutions
migration policy

Event
Geistige Schöpfung
(who)
Nowotny, Klaus
Event
Veröffentlichung
(who)
WWWforEurope
(where)
Vienna
(when)
2015

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Nowotny, Klaus
  • WWWforEurope

Time of origin

  • 2015

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