How do Migrants Choose Their Destination Country? An Analysis of Institutional Determinants

We analyze the effects of socio-economic and institutional determinants, especially labor-market institutions and features of social protection systems, on migrants’ location choices. Based on micro-data for France, Germany, the UK and the US, we study migration to one of the four countries using a Multinomial Choice framework. Our estimates confirm conventional results regarding wages, networks and unemployment rates. In addition, we find that there are indications of “insider-outsider effects” for union coverage and unemployment benefits, while employment protection does not have a clear-cut impact on migration. Good education and health systems tend to attract migrants, while generous pension systems deter them