This paper integrates internal and international migration within a unified quantitative spatial framework at a fine geographical scale to re-assess the distributional effects of migration when those two interlinked dimensions are simultaneously accounted for. It leverages uniquely rich micro-data capturing both internal and international in- and outmigration at a fine geographic scale, and develop a Quantitative Spatial General Equilibrium Model that jointly models migration decisions, local labor markets, and the feedback effects of migration. Counterfactual simulations show that the productivity gains from internal migration in rich districts are nearly neutralized by concurrent productivity losses generated by international emigration from those districts. Furthermore, (i) migration reduces aggregate productivity but increases welfare for both those left behind and natives; (ii) it amplifies spatial disparities in productivity while reducing disparities in welfare; (iii) reducing migration frictions increases both productivity and welfare countrywide. These findings underscore the importance of jointly analyzing both forms of migration to accurately capture their real distributional effects.
COLLABORATION
Analyses, survey insights and a practical guide mark a key milestone in the Erasmus+ project supporting data-driven vocational training across five European countries.
