Alumni Changing the World

Dmytro Vikhrov: “Migration Costs and Determinants of Bilateral Migration Flows”

Room 2, 2nd floor

Abstract:

In this paper I research economic and non-economic determinant of bilateral migration flows with explicit emphasis on the role of migration costs and institutional factors. My contribution to the growing literature is two-fold: firstly, I explicitly model the migration costs accounting for the technological progress that makes it easier for potential migrants to obtain information and to overcome the distance cheaper. Secondly, I apply the developed cost framework to analyzing the educational composition of migrants and correlation of migrant's talent with distance. The preliminary results show that the defined costs variables are significant in explaining the volume and composition of the flow and selection of migrants, the result not being sensitive to the model specification. I further conclude that the restrictive and skill-sensitive immigration policies of major destination countries bias the conventional role of the economic push and pull factors.