The trade effects of skilled versus unskilled migration

Egger, Peter H.; v. Ehrlich, Maximilian; Nelson, Douglas R. (2020). The trade effects of skilled versus unskilled migration (In Press). Journal of comparative economics Elsevier 10.1016/j.jce.2019.12.008

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In this paper, we assess the role of skilled versus unskilled migration for bilateral trade in a flexible econometric model. Using a large data-set on bilateral skill-specific migration and a flexible novel identification strategy, the functionally flexible impact of different levels of skilled and unskilled immigration on the volume and structure of bilateral imports is identified in a quasi-experimental design. We find evidence of a polarized impact of skill-specific immigration on imports: highly concentrated skilled or unskilled immigrants induce higher import volumes than a balanced composition of the immigrant base. This effect turns out particularly important when institutions are weak. Regarding the structure of imports, we observe that skilled immigrants specifically add to imports in differentiated goods. Both bits of evidence are consistent with a segregation of skill-specific immigrant networks and corresponding trade patterns.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics
03 Faculty of Business, Economics and Social Sciences > Department of Economics > Institute of Economics > Economic Policy and Regional Economics
03 Faculty of Business, Economics and Social Sciences > Department of Economics > Institute of Economics
03 Faculty of Business, Economics and Social Sciences > Department of Economics > Institute of Economics > Public Economics
11 Centers of Competence > Center for Regional Economic Development (CRED)

UniBE Contributor:

v. Ehrlich, Maximilian

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0147-5967

Publisher:

Elsevier

Language:

English

Submitter:

Melanie Moser

Date Deposited:

28 Jan 2020 16:03

Last Modified:

28 Jan 2020 16:03

Publisher DOI:

10.1016/j.jce.2019.12.008

BORIS DOI:

10.7892/boris.139424

URI:

https://boris.unibe.ch/id/eprint/139424

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