ifo Center for Migration and Development Economics

Migration and Institutions

The first research area studies the causes and consequences of migration and labour market integration, and how they depend on institutional factors. The issues addressed in this research area include understanding the decisions of individuals to become migrants (self-selection), showing that both economic incentives and institutional factors play an important role, and the welfare effects of migration in origin and destination countries. A key finding is that when both labour market and public finance effects are accounted for, the overall effect of immigration on OECD countries has been positive. Insights from this research can facilitate the design of policies to attract and retain talent. The Center recognises the importance of refugees’ and immigrants’ integration and has carried out a field experiment showing that job-matching support can increase the interview and employment outcomes of certain groups of refugees.

Migration and Political Economy 

The second research area examines the interaction between politics and migration. The Center’s research has shown that electoral considerations affect naturalisation policies in the United States and asylum policies in Europe; and that low-skilled immigration has increased far-right voting in France, and reduced support for far-left candidates. The Center also analyses the connection between intra-European migration on the one hand and economic and social challenges in declining regions on the other. Both of these factors influence the voting behaviours of inhabitants.

Institutions and Financial Intermediation

The third research area studies the institutional underpinnings, which are crucially important to financial markets, and how they affect market outcomes. One aspect is how institutions, such as those protecting property rights, affect the credit market. Another aspect is how the removal of a government guarantee influences banks. This, in turn, influences bank lending policy and thereby the financing situation experienced by firms. Related to this, the Center investigates how institutions and competition in the credit market interact. In addition, crowdfunding as a new form of finance is studied and changes in regulations are compared.

Institutions and Society

Individual trust and beliefs play an important role in the private sector, household decision-making and public policies. The fourth research area has shown that current institutions are shaped by history, such as affiliation with a long-gone former empire. It also examines how beliefs shape policies. Another focus is on the role played by our beliefs about the causes of low and high incomes in redistributive preferences in Germany and the United States.

Center of Excellence for Migration and Integration Research (CEMIR)

The ifo Center of Excellence for Migration and Integration Research (CEMIR) combines expertise from different research institutions and countries, and hitherto often separated fields in economics. Through this, it contributes towards answering the questions concerning optimal immigration policies.

Diverging demographic developments in Europe and in developing countries create a potential for huge mutual gains from migration. At the same time, the immigration of low-skilled workers and emigration of high-skilled workers pose a challenge to the European social model. How can receiving countries ensure that immigrants are net contributors to public finances? How can receiving countries’ welfare state and labour market institutions and immigration policies be designed so that both receiving countries and immigrants will gain?

To answer these questions, the ifo Institute has established the ifo Center of Excellence for Migration and Integration Research (CEMIR). It provides an integrated approach, bringing together labour economics, public economics, political economics, education economics and globalization research. It provides public goods to the research and policy communities in the form of analysis, policy briefs, workshops, conferences, and educating doctoral students. At a later stage, it will also provide an integrated model to assess the effects of immigration policies. CEMIR aims at achieving a lasting impact on the German and European policy debates on migration.

ifo Migration Monitor

The aim of the ifo Migration Monitor is to provide up-to-date information both on regular migration and asylum-seekers in the European Union. ifo Migration Monitor is published by the ifo Center of Excellence for Migration and Integration Research (CEMIR) founded in 2012, which aims to play an active role in the immigration debate in Germany and Europe.

Prof. George Borjas, Ph.D., Harvard Kennedy School

Prof. Giovanni Peri, Ph.D., University of California Davis

Prof. Jörg Rocholl, Ph.D., ESMT European School of Management and Technology

Prof. Dr. Thomas Stratmann, George Mason Universität, Department of Economics

Prof. Dr. Silke Übelmesser, Universität Jena

Christina Fong , Ph.D., Dietrich College of Humanities and Social Sciences

Dr. Kai Gehring

CESifo Area on Labor Economics