Migration flows, structural change, and growth convergence: A panel data analysis of Italian regions

The aim of this paper is to measure the impact of migration flows on growth via their effect on structural change. To this extent we build an empirical growth model in which migration flows and intersectoral wage differentials can affect the speed of labour readjustment between sectors and, ultimately, total factor productivity and growth. By employing Italian regional data stemming over more than four decades we measure the effects of interregional migration on regional growth and convergence. The results confirm that migration in general, and in particular the content of human capital of moving workers, is a relevant factor in determining the speed of technological change and growth.