Asylum seekers:In the search of lost well-being
Jordi Paniagua1 Jesús Peiró-Palomino2,3 Andrés J. Picazo-Tadeo1,3
1University of Valencia
2University Jaume I
3INTECO
XXI Applied Economics Meeting
Alcalá de Henares, June 7, 2018
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 1 / 24
Motivation Stylized Reggae Music
Exodus: Movement of Jah people!
.5
1
1.5
2
2.5
3
Ass
ylum
see
kers
(m
illio
ns)
2000 2005 2010 2015
year
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 2 / 24
Motivation Stylized Reggae Music
Exodus: Movement of Jah people!
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 2 / 24
Motivation Stylized Reggae Music
We know where we're going, uh!
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 3 / 24
Motivation Stylized Reggae Music
We know where we're going, uh!
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 3 / 24
Motivation Stylized Reggae Music
We know where we're going, uh!
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 3 / 24
Motivation Stylized Reggae Music
We know where we're from.
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 4 / 24
Motivation Stylized Reggae Music
We know where we're from.
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 4 / 24
Motivation Stylized Reggae Music
Open your eyes and look within:
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 5 / 24
Motivation Stylized Reggae Music
Open your eyes and look within:
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 5 / 24
Motivation Stylized Reggae Music
Are you satised (with the life you're living)? Uh!
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201520132014
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 6 / 24
Motivation Stylized Reggae Music
Are you satised (with the life you're living)? Uh!
0
100
200
300
400
Assy
lum
see
kers
(tho
usan
ds)
Turk
eyM
exic
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land
Slov
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licPo
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lSl
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Spai
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New
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land
Finl
and
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lyIre
land
Nor
way
Fran
ceAu
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Uni
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Aust
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201520132014
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 6 / 24
Motivation Stylized Reggae Music
We're leaving Babylon
AUS
AUT
BELCAN
CHE
CHL
CZEDEU
DNK
ESPEST
FIN
FRA
GBRGRC
HUN
IRL
ISRITA
JPN
KOR
MEX
NLD
NOR
NZL
POL
PRT
SVK
SVNSWE
TUR
USA
0
5
10
15
Asy
lum
(lo
g)
0 .2 .4 .6 .8 1
Well−being indicator
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 7 / 24
Motivation Stylized Reggae Music
We're going to our Father land
AUS
AUTBEL
CANCHE
CZE
DEU
DNKESP
EST
FIN
FRAGBR
GRC
HUN
IRL
ISL
ITA
JPNKOR
LUX
NLDNOR
NZL
POL
PRT
SVK SVN
SWETUR USA
0
5
10
15
Asy
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(lo
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0 .2 .4 .6 .8 1
Well−being indicator
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 7 / 24
Outline
1 MotivationStylized Reggae MusicContributions
2 The model
3 Data & EmpiricsEmpiricsData
4 ResultsBaselinePull & Push
5 ConclusionsLessons learned
Motivation Contributions
Background
Why do individuals abandon their home and cross international
borders to seek asylum in a foreign destination?
Standard migration models (Anderson, 2011; Beine et al., 2011;Grogger and Hanson, 2011) present some shortcomings when it comesto explain forced migration (i.e., refugees and asylum seekers), whichelude wage considerations.
distress-driven migration (Missirian and Schlenker, 2017a)Temperature, oods or earthquakes (Feng et al., 2010; Gray andMueller, 2012; Yang, 2008; Missirian and Schlenker, 2017b)politics, oppression and violence in source countries (Davenport et al.,2003; Hatton, 2009; Moore and Shellman, 2004; Missirian andSchlenker, 2017b; Neumayer, 2005b,a; Schmeidl, 1997)Policies on host countries (Holzer et al., 2000; Neumayer, 2004;Thielemann, 2004, 2006; Vink and Meijerink, 2003).
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 9 / 24
Motivation Contributions
Background
Why do individuals abandon their home and cross international
borders to seek asylum in a foreign destination?
Standard migration models (Anderson, 2011; Beine et al., 2011;Grogger and Hanson, 2011) present some shortcomings when it comesto explain forced migration (i.e., refugees and asylum seekers), whichelude wage considerations.
distress-driven migration (Missirian and Schlenker, 2017a)Temperature, oods or earthquakes (Feng et al., 2010; Gray andMueller, 2012; Yang, 2008; Missirian and Schlenker, 2017b)politics, oppression and violence in source countries (Davenport et al.,2003; Hatton, 2009; Moore and Shellman, 2004; Missirian andSchlenker, 2017b; Neumayer, 2005b,a; Schmeidl, 1997)Policies on host countries (Holzer et al., 2000; Neumayer, 2004;Thielemann, 2004, 2006; Vink and Meijerink, 2003).
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 9 / 24
Motivation Contributions
Background
Why do individuals abandon their home and cross international
borders to seek asylum in a foreign destination?
Standard migration models (Anderson, 2011; Beine et al., 2011;Grogger and Hanson, 2011) present some shortcomings when it comesto explain forced migration (i.e., refugees and asylum seekers), whichelude wage considerations.
distress-driven migration (Missirian and Schlenker, 2017a)Temperature, oods or earthquakes (Feng et al., 2010; Gray andMueller, 2012; Yang, 2008; Missirian and Schlenker, 2017b)politics, oppression and violence in source countries (Davenport et al.,2003; Hatton, 2009; Moore and Shellman, 2004; Missirian andSchlenker, 2017b; Neumayer, 2005b,a; Schmeidl, 1997)Policies on host countries (Holzer et al., 2000; Neumayer, 2004;Thielemann, 2004, 2006; Vink and Meijerink, 2003).
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 9 / 24
Motivation Contributions
Background
Why do individuals abandon their home and cross international
borders to seek asylum in a foreign destination?
Standard migration models (Anderson, 2011; Beine et al., 2011;Grogger and Hanson, 2011) present some shortcomings when it comesto explain forced migration (i.e., refugees and asylum seekers), whichelude wage considerations.
distress-driven migration (Missirian and Schlenker, 2017a)Temperature, oods or earthquakes (Feng et al., 2010; Gray andMueller, 2012; Yang, 2008; Missirian and Schlenker, 2017b)politics, oppression and violence in source countries (Davenport et al.,2003; Hatton, 2009; Moore and Shellman, 2004; Missirian andSchlenker, 2017b; Neumayer, 2005b,a; Schmeidl, 1997)Policies on host countries (Holzer et al., 2000; Neumayer, 2004;Thielemann, 2004, 2006; Vink and Meijerink, 2003).
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 9 / 24
Motivation Contributions
Background
Why do individuals abandon their home and cross international
borders to seek asylum in a foreign destination?
Standard migration models (Anderson, 2011; Beine et al., 2011;Grogger and Hanson, 2011) present some shortcomings when it comesto explain forced migration (i.e., refugees and asylum seekers), whichelude wage considerations.
distress-driven migration (Missirian and Schlenker, 2017a)Temperature, oods or earthquakes (Feng et al., 2010; Gray andMueller, 2012; Yang, 2008; Missirian and Schlenker, 2017b)politics, oppression and violence in source countries (Davenport et al.,2003; Hatton, 2009; Moore and Shellman, 2004; Missirian andSchlenker, 2017b; Neumayer, 2005b,a; Schmeidl, 1997)Policies on host countries (Holzer et al., 2000; Neumayer, 2004;Thielemann, 2004, 2006; Vink and Meijerink, 2003).
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 9 / 24
Motivation Contributions
Background
Why do individuals abandon their home and cross international
borders to seek asylum in a foreign destination?
Standard migration models (Anderson, 2011; Beine et al., 2011;Grogger and Hanson, 2011) present some shortcomings when it comesto explain forced migration (i.e., refugees and asylum seekers), whichelude wage considerations.
distress-driven migration (Missirian and Schlenker, 2017a)Temperature, oods or earthquakes (Feng et al., 2010; Gray andMueller, 2012; Yang, 2008; Missirian and Schlenker, 2017b)politics, oppression and violence in source countries (Davenport et al.,2003; Hatton, 2009; Moore and Shellman, 2004; Missirian andSchlenker, 2017b; Neumayer, 2005b,a; Schmeidl, 1997)Policies on host countries (Holzer et al., 2000; Neumayer, 2004;Thielemann, 2004, 2006; Vink and Meijerink, 2003).
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 9 / 24
Motivation Contributions
Determinants of asylum seekers
well-being determinants of asylum seekers using the gravity equation(Hatton, 2009 EJ, 2016 AER):
Origin: terror scale, political rights, civil liberties, wars, incomeDestination: unemployment, recognition, migration, welfareBilateral: distance
Issues:A formal model to explain and derive a gravity equation for asylumows
Empirical bias: Multilateral resistance (time-varying third countryeects)
Country-specic crude indicators of welfare (Hatton, 2009 EJ, p.211)
Decision making: dierentials rather than in absolute levels (Ariely,2009)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 10 / 24
Motivation Contributions
Determinants of asylum seekers
well-being determinants of asylum seekers using the gravity equation(Hatton, 2009 EJ, 2016 AER):
Origin: terror scale, political rights, civil liberties, wars, incomeDestination: unemployment, recognition, migration, welfareBilateral: distance
Issues:A formal model to explain and derive a gravity equation for asylumows
Empirical bias: Multilateral resistance (time-varying third countryeects)
Country-specic crude indicators of welfare (Hatton, 2009 EJ, p.211)
Decision making: dierentials rather than in absolute levels (Ariely,2009)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 10 / 24
Motivation Contributions
Determinants of asylum seekers
well-being determinants of asylum seekers using the gravity equation(Hatton, 2009 EJ, 2016 AER):
Origin: terror scale, political rights, civil liberties, wars, incomeDestination: unemployment, recognition, migration, welfareBilateral: distance
Issues:A formal model to explain and derive a gravity equation for asylumows
Empirical bias: Multilateral resistance (time-varying third countryeects)
Country-specic crude indicators of welfare (Hatton, 2009 EJ, p.211)
Decision making: dierentials rather than in absolute levels (Ariely,2009)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 10 / 24
Motivation Contributions
Determinants of asylum seekers
well-being determinants of asylum seekers using the gravity equation(Hatton, 2009 EJ, 2016 AER):
Origin: terror scale, political rights, civil liberties, wars, incomeDestination: unemployment, recognition, migration, welfareBilateral: distance
Issues:A formal model to explain and derive a gravity equation for asylumows
Empirical bias: Multilateral resistance (time-varying third countryeects)
Country-specic crude indicators of welfare (Hatton, 2009 EJ, p.211)
Decision making: dierentials rather than in absolute levels (Ariely,2009)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 10 / 24
Motivation Contributions
Determinants of asylum seekers
well-being determinants of asylum seekers using the gravity equation(Hatton, 2009 EJ, 2016 AER):
Origin: terror scale, political rights, civil liberties, wars, incomeDestination: unemployment, recognition, migration, welfareBilateral: distance
Issues:A formal model to explain and derive a gravity equation for asylumows
Empirical bias: Multilateral resistance (time-varying third countryeects)
Country-specic crude indicators of welfare (Hatton, 2009 EJ, p.211)
Decision making: dierentials rather than in absolute levels (Ariely,2009)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 10 / 24
Motivation Contributions
Determinants of asylum seekers
well-being determinants of asylum seekers using the gravity equation(Hatton, 2009 EJ, 2016 AER):
Origin: terror scale, political rights, civil liberties, wars, incomeDestination: unemployment, recognition, migration, welfareBilateral: distance
Issues:A formal model to explain and derive a gravity equation for asylumows
Empirical bias: Multilateral resistance (time-varying third countryeects)
Country-specic crude indicators of welfare (Hatton, 2009 EJ, p.211)
Decision making: dierentials rather than in absolute levels (Ariely,2009)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 10 / 24
Motivation Contributions
Determinants of asylum seekers
well-being determinants of asylum seekers using the gravity equation(Hatton, 2009 EJ, 2016 AER):
Origin: terror scale, political rights, civil liberties, wars, incomeDestination: unemployment, recognition, migration, welfareBilateral: distance
Issues:A formal model to explain and derive a gravity equation for asylumows
Empirical bias: Multilateral resistance (time-varying third countryeects)
Country-specic crude indicators of welfare (Hatton, 2009 EJ, p.211)
Decision making: dierentials rather than in absolute levels (Ariely,2009)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 10 / 24
Motivation Contributions
Determinants of asylum seekers
well-being determinants of asylum seekers using the gravity equation(Hatton, 2009 EJ, 2016 AER):
Origin: terror scale, political rights, civil liberties, wars, incomeDestination: unemployment, recognition, migration, welfareBilateral: distance
Issues:A formal model to explain and derive a gravity equation for asylumows
Empirical bias: Multilateral resistance (time-varying third countryeects)
Country-specic crude indicators of welfare (Hatton, 2009 EJ, p.211)
Decision making: dierentials rather than in absolute levels (Ariely,2009)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 10 / 24
Motivation Contributions
Determinants of asylum seekers
well-being determinants of asylum seekers using the gravity equation(Hatton, 2009 EJ, 2016 AER):
Origin: terror scale, political rights, civil liberties, wars, incomeDestination: unemployment, recognition, migration, welfareBilateral: distance
Issues:A formal model to explain and derive a gravity equation for asylumows
Empirical bias: Multilateral resistance (time-varying third countryeects)
Country-specic crude indicators of welfare (Hatton, 2009 EJ, p.211)
Decision making: dierentials rather than in absolute levels (Ariely,2009)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 10 / 24
Motivation Contributions
Contributions
1 First, we develop a model which:1 incorporates well-being explicitly in the migration decision and reduces
the uncertainty of the idiosyncratic migration component.2 introduces multilateral resistance in bilateral asylum ows.
2 Second, we construct multi-dimensional home and host well-being
indices
3 Third, and estimate the eects of well-being on asylum ows
controlling for unobserved bilateral heterogeneity, multilateral
resistance terms, zero asylum ows and heteroskedastic residuals
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 11 / 24
Motivation Contributions
Contributions
1 First, we develop a model which:1 incorporates well-being explicitly in the migration decision and reduces
the uncertainty of the idiosyncratic migration component.2 introduces multilateral resistance in bilateral asylum ows.
2 Second, we construct multi-dimensional home and host well-being
indices
3 Third, and estimate the eects of well-being on asylum ows
controlling for unobserved bilateral heterogeneity, multilateral
resistance terms, zero asylum ows and heteroskedastic residuals
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 11 / 24
Motivation Contributions
Contributions
1 First, we develop a model which:1 incorporates well-being explicitly in the migration decision and reduces
the uncertainty of the idiosyncratic migration component.2 introduces multilateral resistance in bilateral asylum ows.
2 Second, we construct multi-dimensional home and host well-being
indices
3 Third, and estimate the eects of well-being on asylum ows
controlling for unobserved bilateral heterogeneity, multilateral
resistance terms, zero asylum ows and heteroskedastic residuals
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 11 / 24
Motivation Contributions
Contributions
1 First, we develop a model which:1 incorporates well-being explicitly in the migration decision and reduces
the uncertainty of the idiosyncratic migration component.2 introduces multilateral resistance in bilateral asylum ows.
2 Second, we construct multi-dimensional home and host well-being
indices
3 Third, and estimate the eects of well-being on asylum ows
controlling for unobserved bilateral heterogeneity, multilateral
resistance terms, zero asylum ows and heteroskedastic residuals
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 11 / 24
Motivation Contributions
Contributions
1 First, we develop a model which:1 incorporates well-being explicitly in the migration decision and reduces
the uncertainty of the idiosyncratic migration component.2 introduces multilateral resistance in bilateral asylum ows.
2 Second, we construct multi-dimensional home and host well-being
indices
3 Third, and estimate the eects of well-being on asylum ows
controlling for unobserved bilateral heterogeneity, multilateral
resistance terms, zero asylum ows and heteroskedastic residuals
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 11 / 24
The model
The setup
The prospect asylum seeker faces a discrete menu of host locations
with dierent wages (wj ); each with a common bilateral cost to all
migrants in the country pair, which are modeled with iceberg cost
τij > 1.
Wages are bargained at country level and are known to all prospective
migrants. In addition to the nominal wage, an i-country asylum seeker
assesses the well-being of location. The well-being gain ϕj > 0 enters
multiplicative in the model and enhances or deters nominal wages.
We allow for a constant preference between monetary income and well
being of the form wσj ϕ
1−σ
j
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 12 / 24
The model
The setup
The prospect asylum seeker faces a discrete menu of host locations
with dierent wages (wj ); each with a common bilateral cost to all
migrants in the country pair, which are modeled with iceberg cost
τij > 1.
Wages are bargained at country level and are known to all prospective
migrants. In addition to the nominal wage, an i-country asylum seeker
assesses the well-being of location. The well-being gain ϕj > 0 enters
multiplicative in the model and enhances or deters nominal wages.
We allow for a constant preference between monetary income and well
being of the form wσj ϕ
1−σ
j
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 12 / 24
The model
The setup
The prospect asylum seeker faces a discrete menu of host locations
with dierent wages (wj ); each with a common bilateral cost to all
migrants in the country pair, which are modeled with iceberg cost
τij > 1.
Wages are bargained at country level and are known to all prospective
migrants. In addition to the nominal wage, an i-country asylum seeker
assesses the well-being of location. The well-being gain ϕj > 0 enters
multiplicative in the model and enhances or deters nominal wages.
We allow for a constant preference between monetary income and well
being of the form wσj ϕ
1−σ
j
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 12 / 24
The model
The decision and the pie
In line with the relative decision making theory, a rational individual
decides to seek asylum in country j if:
(wσj ϕ
1−σ
j /τij)εijz > wσi ϕ
1−σ
i . (1)
The asylum seeker has a logarithm utility and the observable
component of migrant utility is then:
uij = σ lnwij + (1−σ) lnϕij − lnτij , (2)
the probability that a random migrant select a particular destination is
given by the multinomial logit form. The aggregate probability is the
proportion of identical migrants from i (except for the values of εijz)
that choose j. The predicted aggregate ow of asylum seekers from i
to j is:
Aij = G (uij)Ni =wσij ϕ
1−σ
ij /τij
∑k wσ
ikϕ1−σ
ik /τik
Ni . (3)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 13 / 24
The model
The decision and the pie
In line with the relative decision making theory, a rational individual
decides to seek asylum in country j if:
(wσj ϕ
1−σ
j /τij)εijz > wσi ϕ
1−σ
i . (1)
The asylum seeker has a logarithm utility and the observable
component of migrant utility is then:
uij = σ lnwij + (1−σ) lnϕij − lnτij , (2)
the probability that a random migrant select a particular destination is
given by the multinomial logit form. The aggregate probability is the
proportion of identical migrants from i (except for the values of εijz)
that choose j. The predicted aggregate ow of asylum seekers from i
to j is:
Aij = G (uij)Ni =wσij ϕ
1−σ
ij /τij
∑k wσ
ikϕ1−σ
ik /τik
Ni . (3)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 13 / 24
The model
The decision and the pie
In line with the relative decision making theory, a rational individual
decides to seek asylum in country j if:
(wσj ϕ
1−σ
j /τij)εijz > wσi ϕ
1−σ
i . (1)
The asylum seeker has a logarithm utility and the observable
component of migrant utility is then:
uij = σ lnwij + (1−σ) lnϕij − lnτij , (2)
the probability that a random migrant select a particular destination is
given by the multinomial logit form. The aggregate probability is the
proportion of identical migrants from i (except for the values of εijz)
that choose j. The predicted aggregate ow of asylum seekers from i
to j is:
Aij = G (uij)Ni =wσij ϕ
1−σ
ij /τij
∑k wσ
ikϕ1−σ
ik /τik
Ni . (3)
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 13 / 24
The model
A structural gravity equation for asylum seekers
Aij =SjNi
N︸ ︷︷ ︸Frictionless asylum
wσij ϕ
1−σ
ij /τij
ΩjLi︸ ︷︷ ︸Asylum frictions
. (4)
The second term represents frictions that impede or enhance asylum
ows. In a simple two country setup, bilateral migration ows will ow
towards destinations with higher wage and well-being dierentials with
lower travel cost.
However, multiple alternative destination inuence the migration
decision. This fact is captured by Ωj and Li , whose interpretation is
analogous to the multilateral resistance terms in a gravity model of
trade (Anderson & van Wincoop, 2003).
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 14 / 24
The model
A structural gravity equation for asylum seekers
Aij =SjNi
N︸ ︷︷ ︸Frictionless asylum
wσij ϕ
1−σ
ij /τij
ΩjLi︸ ︷︷ ︸Asylum frictions
. (4)
The second term represents frictions that impede or enhance asylum
ows. In a simple two country setup, bilateral migration ows will ow
towards destinations with higher wage and well-being dierentials with
lower travel cost.
However, multiple alternative destination inuence the migration
decision. This fact is captured by Ωj and Li , whose interpretation is
analogous to the multilateral resistance terms in a gravity model of
trade (Anderson & van Wincoop, 2003).
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 14 / 24
Data & Empirics Empirics
Estimation
We use the the Pseudo-Poisson Maximum likelihood (PPML) estimator
proposed by Silva and Tenreyro (2006) using Larch's et al. (2017)
procedure:
Aijt = exp(β1 lnwijt + β2 lnϕijt + λij + λit + λjt) + εijt .
Data
OECD: Asylum seekers
Better Life Index the BLI following the recent guidelines by the Commission
on the Measurement of Economic Performance and Social Progress
(CMEPSP), based on three domains: material conditions, quality of life
and sustainability.
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 15 / 24
Data & Empirics Empirics
Estimation
We use the the Pseudo-Poisson Maximum likelihood (PPML) estimator
proposed by Silva and Tenreyro (2006) using Larch's et al. (2017)
procedure:
Aijt = exp(β1 lnwijt + β2 lnϕijt + λij + λit + λjt) + εijt .
Data
OECD: Asylum seekers
Better Life Index the BLI following the recent guidelines by the Commission
on the Measurement of Economic Performance and Social Progress
(CMEPSP), based on three domains: material conditions, quality of life
and sustainability.
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 15 / 24
Data & Empirics Empirics
Estimation
We use the the Pseudo-Poisson Maximum likelihood (PPML) estimator
proposed by Silva and Tenreyro (2006) using Larch's et al. (2017)
procedure:
Aijt = exp(β1 lnwijt + β2 lnϕijt + λij + λit + λjt) + εijt .
Data
OECD: Asylum seekers
Better Life Index the BLI following the recent guidelines by the Commission
on the Measurement of Economic Performance and Social Progress
(CMEPSP), based on three domains: material conditions, quality of life
and sustainability.
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 15 / 24
Data & Empirics Data
Better Life Index
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 16 / 24
Data & Empirics Data
A composite indicator for better life
We elaborate a global well-being indicator comparable acrosseconomies.
Data Envelopment Analysis (DEA) & Multi-Criteria-Decision-Making(MCDM) techniques (Peiró & Picazo, 2018).
endogenous weights that maximise each country's well-being relative tothe well-being of all other countries in the sample assessed with thesame set of weights
Composite indicator dimension d∗c ′ =Minimiseλc ,S
+ic ′
1
1+ 1
I ∑Ii=1
S+ic ′
indicator ic ′
Subject to:
xc ′ ≥34
∑c=1
λcxc
Indicator ic ′ =34
∑c=1
λc indicator ic −S+ic ′ i = 1, ...I
S+ic ′ ≥ 0 i = 1, ...I
λc ≥ 0 c = 1, ...34
(5)PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 17 / 24
Data & Empirics Data
A composite indicator for better life
We elaborate a global well-being indicator comparable acrosseconomies.
Data Envelopment Analysis (DEA) & Multi-Criteria-Decision-Making(MCDM) techniques (Peiró & Picazo, 2018).
endogenous weights that maximise each country's well-being relative tothe well-being of all other countries in the sample assessed with thesame set of weights
Composite indicator dimension d∗c ′ =Minimiseλc ,S
+ic ′
1
1+ 1
I ∑Ii=1
S+ic ′
indicator ic ′
Subject to:
xc ′ ≥34
∑c=1
λcxc
Indicator ic ′ =34
∑c=1
λc indicator ic −S+ic ′ i = 1, ...I
S+ic ′ ≥ 0 i = 1, ...I
λc ≥ 0 c = 1, ...34
(5)PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 17 / 24
Data & Empirics Data
A composite indicator for better life
We elaborate a global well-being indicator comparable acrosseconomies.
Data Envelopment Analysis (DEA) & Multi-Criteria-Decision-Making(MCDM) techniques (Peiró & Picazo, 2018).
endogenous weights that maximise each country's well-being relative tothe well-being of all other countries in the sample assessed with thesame set of weights
Composite indicator dimension d∗c ′ =Minimiseλc ,S
+ic ′
1
1+ 1
I ∑Ii=1
S+ic ′
indicator ic ′
Subject to:
xc ′ ≥34
∑c=1
λcxc
Indicator ic ′ =34
∑c=1
λc indicator ic −S+ic ′ i = 1, ...I
S+ic ′ ≥ 0 i = 1, ...I
λc ≥ 0 c = 1, ...34
(5)PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 17 / 24
Data & Empirics Data
A composite indicator for better life
Issues with DEA:lack of discriminating power (countries vs dimensions)Idiosyncratic weights
Combination of DEA with with Multi-Criteria-Decision-Making
(MCDM) (Despotis, 2002):
Minimisemc ,ωi ,z t1
34
34
∑c=1
mc + (1− t)z
Subject to :
I
∑i=1
ωi indicator ic +mc = composite indicator dimension d∗c c = 1, ...34
(mc − z)≤ 0 c = 1, ...34
mc ≥ 0 c = 1, ...34
ωi ≥ ε i = 1, ...I
z ≥ 0
(6)PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 18 / 24
Data & Empirics Data
A composite indicator for better life
Issues with DEA:lack of discriminating power (countries vs dimensions)Idiosyncratic weights
Combination of DEA with with Multi-Criteria-Decision-Making
(MCDM) (Despotis, 2002):
Minimisemc ,ωi ,z t1
34
34
∑c=1
mc + (1− t)z
Subject to :
I
∑i=1
ωi indicator ic +mc = composite indicator dimension d∗c c = 1, ...34
(mc − z)≤ 0 c = 1, ...34
mc ≥ 0 c = 1, ...34
ωi ≥ ε i = 1, ...I
z ≥ 0
(6)PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 18 / 24
Data & Empirics Data
A composite indicator for better life
Issues with DEA:lack of discriminating power (countries vs dimensions)Idiosyncratic weights
Combination of DEA with with Multi-Criteria-Decision-Making
(MCDM) (Despotis, 2002):
Minimisemc ,ωi ,z t1
34
34
∑c=1
mc + (1− t)z
Subject to :
I
∑i=1
ωi indicator ic +mc = composite indicator dimension d∗c c = 1, ...34
(mc − z)≤ 0 c = 1, ...34
mc ≥ 0 c = 1, ...34
ωi ≥ ε i = 1, ...I
z ≥ 0
(6)PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 18 / 24
Data & Empirics Data
A composite indicator for better life
Issues with DEA:lack of discriminating power (countries vs dimensions)Idiosyncratic weights
Combination of DEA with with Multi-Criteria-Decision-Making
(MCDM) (Despotis, 2002):
Minimisemc ,ωi ,z t1
34
34
∑c=1
mc + (1− t)z
Subject to :
I
∑i=1
ωi indicator ic +mc = composite indicator dimension d∗c c = 1, ...34
(mc − z)≤ 0 c = 1, ...34
mc ≥ 0 c = 1, ...34
ωi ≥ ε i = 1, ...I
z ≥ 0
(6)PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 18 / 24
Data & Empirics Data
Asylum vs well-being dimensions destination0
510
15lo
gAss
ylum
0 .2 .4 .6 .8 1(mean) well_being_des
05
1015
logA
ssyl
um
0 .2 .4 .6 .8(mean) housing_des
05
1015
logA
ssyl
um
0 .2 .4 .6 .8(mean) income_des
05
1015
logA
ssyl
um
0 .2 .4 .6 .8(mean) jobs_des
05
1015
logA
ssyl
um
0 .2 .4 .6 .8 1(mean) community_des
05
1015
logA
ssyl
um
0 .2 .4 .6(mean) education_des
05
1015
logA
ssyl
um0 .2 .4 .6 .8 1
(mean) environment_des
05
1015
logA
ssyl
um
0 .1 .2 .3 .4(mean) civic_engagement_des
05
1015
logA
ssyl
um
.2 .4 .6 .8(mean) health_des
05
1015
logA
ssyl
um
0 .2 .4 .6 .8(mean) safety_des
05
1015
logA
ssyl
um
0 .2 .4 .6 .8 1(mean) work_life_balance_des
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 19 / 24
Data & Empirics Data
Asylum vs well-being dimensions origin0
510
15lo
gAss
ylum
0 .2 .4 .6 .8 1(mean) well_being_scr
05
1015
logA
ssyl
um
0 .2 .4 .6 .8(mean) housing_scr
05
1015
logA
ssyl
um
0 .2 .4 .6 .8(mean) income_scr
05
1015
logA
ssyl
um
0 .2 .4 .6(mean) jobs_scr
05
1015
logA
ssyl
um
0 .2 .4 .6 .8 1(mean) community_scr
05
1015
logA
ssyl
um
0 .2 .4 .6(mean) education_scr
05
1015
logA
ssyl
um0 .2 .4 .6 .8 1
(mean) environment_scr
05
1015
logA
ssyl
um
0 .1 .2 .3 .4(mean) civic_engagement_scr
05
1015
logA
ssyl
um
.2 .4 .6 .8(mean) health_scr
05
1015
logA
ssyl
um
0 .2 .4 .6 .8(mean) safety_scr
05
1015
logA
ssyl
um
0 .2 .4 .6 .8 1(mean) work_life_balance_scr
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 19 / 24
Results Baseline
Asylum ows Migrant ows
(1) (2) (3) (4) (5) (6) (7) (8)
Well-beingij 5.568*** 2.193 12.621∗∗∗ 0.005
(1.79) (2.46) (2.17) (0.12)
Housingij 0.535 0.524 10.989∗∗∗ 0.361
(2.40) (1.01) (3.75) (0.39)
Incomeij 0.188* 0.250 -4.639 -0.005
(0.10) (0.19) (4.09) (0.02)
Jobsij -1.240 -0.197 -1.985 0.368*
(1.47) (0.28) (1.96) (0.19)
Communityij 2.231 -0.474 1.282∗∗∗ -0.121
(2.83) (0.41) (0.47) (0.25)
Educationij -1.080 -0.399 -3.480∗∗∗ -0.399
(2.23) (1.17) (1.11) (0.64)
Environmentij 4.584 3.451∗∗∗ 2.866∗ -1.583
(4.31) (0.97) (1.49) (1.03)
Civicij 2.657** 0.356∗∗ 0.986∗∗∗ 0.173
(1.10) (0.15) (0.38) (0.18)
Healthij -5.863 0.110 -0.620 0.059
(3.83) (0.11) (0.65) (0.09)
Safetyij -0.300* -0.084 -1.447∗ -0.013
(0.17) (0.17) (0.74) (0.06)
Work-life balanceij 4.250*** 0.691 0.558 0.350
(1.15) (0.73) (0.83) (0.31)
Observations 686 686 915 905 3179 3179 3179 3179
R2 0.99 0.99 0.36 0.36 0.054 0.276 0.99 0.99
Country-year FE Yes Yes No No No No Yes Yes
Country-pair FE Yes Yes Yes Yes No No Yes Yes
Notes: Robust standard errors in parentheses, clustered by country pair
Country-year include both home-year and source-year country xed eects.∗ p < 0.10, ∗∗ p < 0.05, ∗∗∗ p < 0.01PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 20 / 24
Results Pull & Push
Source Host Source Host Host
(1a) (1b) (2a) (2b) (3) (4)
Well-being -1.248** 3.937*** 8.392***
(0.57) (0.78) (1.99)
Housing -4.801*** 5.081*** 3.581***
(0.74) (0.34) (0.99)
Income 3.298 5.890 1.462
(2.49) (5.75) (1.85)
Jobs -2.109*** 0.395 -0.311
(0.61) (0.29) (1.10)
Community -0.392** 1.865** 0.431
(0.20) (0.84) (0.40)
Education -2.723 1.732*** 3.215**
(1.73) (0.33) (1.42)
Environment -3.855*** 1.210 -0.469
(0.55) (1.04) (1.41)
Civic -2.898*** -2.699** 0.835
(0.74) (1.08) (1.41)
Health 0.033 -1.065 1.123
(1.37) (1.11) (1.92)
Safety 0.234 -1.153*** -0.161
(0.63) (0.04) (0.33)
Work-life balance -2.869*** 0.246 -0.492
(0.72) (0.66) (1.28)
Observations 915 915 8022 8022
R2 0.20 0.52 0.16 0.18
Country-pair FE Yes Yes Yes Yes
Notes: Robust standard errors in parentheses, clustered by country pair∗ p < 0.10, ∗∗ p < 0.05, ∗∗∗ p < 0.01
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 21 / 24
Conclusions Lessons learned
Take-away
1 Asylum ows & Wellbeing:1 Theoretical framework2 Composite well-being indicator3 Structural gravity estimation
2 Our ndings give support to the use of this new set of
multidimensional measures of well-being, as the Better Life Index
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 22 / 24
Conclusions Lessons learned
Take-away
1 Asylum ows & Wellbeing:1 Theoretical framework2 Composite well-being indicator3 Structural gravity estimation
2 Our ndings give support to the use of this new set of
multidimensional measures of well-being, as the Better Life Index
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 22 / 24
Conclusions Lessons learned
Take-away
1 Asylum ows & Wellbeing:1 Theoretical framework2 Composite well-being indicator3 Structural gravity estimation
2 Our ndings give support to the use of this new set of
multidimensional measures of well-being, as the Better Life Index
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 22 / 24
Conclusions Lessons learned
Take-away
1 Asylum ows & Wellbeing:1 Theoretical framework2 Composite well-being indicator3 Structural gravity estimation
2 Our ndings give support to the use of this new set of
multidimensional measures of well-being, as the Better Life Index
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 22 / 24
Conclusions Lessons learned
Take-away
1 Asylum ows & Wellbeing:1 Theoretical framework2 Composite well-being indicator3 Structural gravity estimation
2 Our ndings give support to the use of this new set of
multidimensional measures of well-being, as the Better Life Index
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 22 / 24
Conclusions Lessons learned
liberté, égalité, fraternité
...¾and well-being?
1 The inspirational foundations of the European project are falling apart
at the seams of the refugee crisis2 Can we do better?
Mind the gap: work-life balance, civic engagement and incomePush factors: enlarging the scope of economic policies at the sourcewith a wider range targets and political and civil actors.Pull factors, a better design of the refugee quota system, which takesinto account not only the population and growth of the host country,but also housing and educational variables.
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 23 / 24
Conclusions Lessons learned
liberté, égalité, fraternité ...¾and well-being?
1 The inspirational foundations of the European project are falling apart
at the seams of the refugee crisis2 Can we do better?
Mind the gap: work-life balance, civic engagement and incomePush factors: enlarging the scope of economic policies at the sourcewith a wider range targets and political and civil actors.Pull factors, a better design of the refugee quota system, which takesinto account not only the population and growth of the host country,but also housing and educational variables.
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 23 / 24
Conclusions Lessons learned
liberté, égalité, fraternité ...¾and well-being?
1 The inspirational foundations of the European project are falling apart
at the seams of the refugee crisis2 Can we do better?
Mind the gap: work-life balance, civic engagement and incomePush factors: enlarging the scope of economic policies at the sourcewith a wider range targets and political and civil actors.Pull factors, a better design of the refugee quota system, which takesinto account not only the population and growth of the host country,but also housing and educational variables.
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 23 / 24
Conclusions Lessons learned
liberté, égalité, fraternité ...¾and well-being?
1 The inspirational foundations of the European project are falling apart
at the seams of the refugee crisis2 Can we do better?
Mind the gap: work-life balance, civic engagement and incomePush factors: enlarging the scope of economic policies at the sourcewith a wider range targets and political and civil actors.Pull factors, a better design of the refugee quota system, which takesinto account not only the population and growth of the host country,but also housing and educational variables.
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 23 / 24
Conclusions Lessons learned
liberté, égalité, fraternité ...¾and well-being?
1 The inspirational foundations of the European project are falling apart
at the seams of the refugee crisis2 Can we do better?
Mind the gap: work-life balance, civic engagement and incomePush factors: enlarging the scope of economic policies at the sourcewith a wider range targets and political and civil actors.Pull factors, a better design of the refugee quota system, which takesinto account not only the population and growth of the host country,but also housing and educational variables.
PPP (UV & UJI) In the search of lost well-being XXI EEA, Alcalá 2018 23 / 24