Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271775 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 10131
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We analyze the migration drivers within the European Union countries. For a set of 23 EU countries over the 1995-2019 period, we use Bayesian Model Averaging and quantile regression to assess notably the relevance of unemployment and earnings. We find that the existence of a common border increases the number of net migrants by 172 people per 1000 inhabitants. In addition, 1000 PPP Euro increase in the difference in net annual salaries increases net migration by approximately 50 and 42 people per 1000 inhabitants in a working age of both countries under uniform and binomial-beta model prior, respectively. Moreover, one percentage point increase in the difference in the unemployment rate is associated with an increase in net immigration by approximately 6 and 3 persons by 1000 inhabitants in both countries. These results are also corroborated with the quantile regression results. Hence, human capital inside the EU is moving in search of higher cross-country earnings.
Subjects: 
migration flows
earnings
unemployment
Bayesian Model Averaging
quantile regression
EU
JEL: 
J61
J62
E24
F15
F22
Document Type: 
Working Paper
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