Visa Policies, Networks and the Cliff at the Border
Résumé
The scale of international migration flows depends on moving costs that are, in turn,
influenced by host-country policies and by the size of migrant networks at destination. This
paper estimates the influence of visa policies and networks upon bilateral migration flows to
multiple destinations. We rely on a Poisson pseudo-maximum likelihood estimator to derive
estimates that are consistent under more general distributional assumptions on the
underlying RUM model than the ones commonly adopted in the literature. We derive
bounds for the estimated direct and indirect effects of visa policies and networks that reflect
the uncertainty connected to the use of aggregate data, and we show that bilateral
migration flows can be highly sensitive to the immigration policies set by other destination
countries, an externality that we are able to quantify.
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