Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/69431 
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Papers No. 7170
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
The analysis of how the economic crisis in Europe has reshaped migration flows faces two challenges: (i) the confounding influence of correlated changes in the attractiveness of alternative destinations, and (ii) the role of rapidly changing expectations about the evolution of the economic conditions in various countries. This paper addresses the first challenge by controlling for multilateral resistance to migration, and the second one by incorporating 10-year bond yields as an explanatory variable in a study of European bilateral migration flows to Germany between 2006 and 2012. We show that, while expectations and current economic conditions at origin are significant determinants of migration, diversion effects account for 78 percent of the observed increase in German gross migration inflows.
Subjects: 
international migration
multiple destinations
diversion, expectations
JEL: 
F22
O15
J61
Document Type: 
Working Paper

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