1 论文标题
Migration, Trade and Income
2 作者信息
Ortega, Francesc (Queens College, CUNY)
Peri, Giovanni (University of California, Davis)
3 出处和链接(比如,NBER working paper No.11000)
IZA DP No. 7325, Apr 2013
4 摘要
This paperexplores the relationship between openness to trade, immigration, andincome per person across countries. To address endogeneity concerns weextend the instrumental-variables strategy introducedby Frankel and Romer (1999). We build predictors of openness toimmigration and to trade for each country by using information onbilateral geographical and cultural distance (while controlling forcountry size). Since geography may affect income through otherchannels, we also control for climate, disease environment, naturalresources, and colonial origins. Most importantly, we also account forthe roles of institutions and early development. Ourinstrumental-variables estimates provide evidence of a robust, positiveeffect of openness to immigration on long-run income per capita. Incontrast, we are unable to establish an effect of trade openness onincome. We also show that the effect of migration operates through anincrease in total factor productivity, which appearsto reflect increased diversity in productive skills and, to someextent, a higher rate of innovation.