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Kiel Institute for World Economics Kiel Working Papers, Kiel Institute for World Economics

No 1187:
Long-Run Determinants of Immigration to Germany 1974-1999: A Ricardian Framework

Federico Foders

Abstract: This paper examines the long-run determinants of immigration to Germany using a modified version of the Ricardo model. After a brief overview of labour flows to Germany and the related empirical literature, a Ricardian model of migration is estimated using static panel data methods. The results show that variables representing factor abundance appear to have no effect whatsoever on labour flows to Germany in a period of rising unemployment (1974–1999), while variables representing income or productivity differences do have an impact. The latter obtains only if the stock of previous immigrants in the country of destination and the distance between sending countries and the receiving country are controlled for.

Keywords: Labour mobility, immigration, migration, Germany, Ricardo model; (follow links to similar papers)

JEL-Codes: F22,; F20,; F10; (follow links to similar papers)

34 pages, September 2003

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