Happiness and International Migration
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In this paper, we consider the extent to which the aggregate happiness of a country affects the flow of people across its borders. We merge data from the World Values Survey, which produces happiness indices for 84 countries between 1981 and 2004, with three different migration datasets: emigration rates from the Organization for Economic Cooperation and Development, immigration rates from the U.S. Census, and net migration rates from the United Nations. We find that happiness has a U-shaped relationship with emigration rates: emigration rates fall in happiness for relatively unhappy countries, but rise for relatively happy countries. The U-shaped relationship also holds for migrant flows into the U.S. When analyzing net migration rates, we find that the reverse relationship exists. Net migration is associated with an increase in happiness for relatively unhappy countries, but after a threshold level of happiness, net migration is associated with a decrease in happiness. Our findings are robust to various empirical specifications and datasets.
KeywordsInternational migration Happiness Human development Income
We wish to thank Michelle Wiggins for excellent research assistance. This paper benefited from helpful comments made by Takao Kato, Giovanni Peri, Ann Own, seminar participants at Lafayette College, the Midwest Economic Association 2007 meetings in Minneapolis, and the American Economic Association 2009 meetings in San Francisco, CA. All errors are our own.
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