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@techreport{NBERw16831,
 title = "Free vs. Controlled Migration: Bilateral Country Study",
 author = "Razin, Assaf and Wahba, Jackline",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "16831",
 year = "2011",
 month = "February",
 doi = {10.3386/w16831},
 URL = "http://www.nber.org/papers/w16831",
 abstract = {This paper tests the differential effects of the generosity of the welfare state under free migration and under policy-controlled migration, distinguishing between source developing and developed countries. We utilize free-movement within the EU to examine the free migration regime and compare that to immigration into the EU from two other groups, developed and developing source countries, to capture immigration-restricted regimes. We standardize cross-country education quality differences by using the Hanushek-Woessmann (2009) cognitive skills measure. We find strong support for the "Magnet Hypothesis" under the free-migration regime, and the "Fiscal Burden Hypothesis" under the immigration- restricted regime even after controlling for differences in returns to skills in source and host countries. We also find a significant differences across host-country  policy regimes in the effects of returns to skills on the skill mix of immigrants.},
}