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Neuer Diskussionsbeitrag: Stymied Ambition: Does a Lack of Economic Freedom Lead to Migration?

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Abstract
This contribution investigates the relationship between economic freedom and international migration.  We  argue  that  higher  levels  of  economic  freedom  in  the  source  countries  of migration may discourage migration by generating more economic security, providing more economic opportunities and stimulating overall economic activity. Using a panel dataset on migration  from  91  developing  and  emerging  to  the  20  most  attractive  OECD  destination countries for the 1980-2010 period, we find that more economic freedom at home discourages high-skilled migration but does not matter to low-skilled migration. The negative association between economic freedom and high-skilled emigration also holds when we estimate (dynamic) panel  models  that  allow  for  endogeneity  in  the  economic  freedom-migration  nexus.  Our findings  suggest  that  high-skilled  individuals  are  especially  responsive  to  the  economic incentives arising  from  economic freedom.  This  is  especially  true for those components of economic freedom associated with the provision of economic security in the form of well-protected property rights, sound money and limited government involvement in the economic life.

 

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