Immigrant Selection in the OECD*

TLDR

The study investigates how educational selectivity in immigration is determined across 70 source and 21 OECD destination countries using 2000/2001 immigrant stock data. A variant of the Roy model is employed to estimate these determinants from the cross‑country immigrant stock data. The analysis shows that the skill premium matters only when poverty constraints in source countries are considered, and that cultural similarity, colonial ties, and distance are often stronger determinants than wage incentives or selective immigration policy.

Abstract

Abstract In this paper, we examine the determinants of educational selectivity in immigration using immigrant stock data for 70 source countries and 21 OECD destination countries, as observed in the year 2000/2001. We develop a variant of the Roy model to estimate the determinants of educational selectivity. Two key findings emerge. First, the effect of the skill premium, which is at the core of the Roy model, can be observed only after we take into account the poverty constraints operating in the source countries. Second, cultural similarities, colonial legacies, and physical distance are often more important determinants of educational selectivity than wage incentives or selective immigration policy.