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  4. New York, Abu Dhabi, London, or stay at home? Using a cross-nested logit model to identify complex substitution patterns in migration
 
research article

New York, Abu Dhabi, London, or stay at home? Using a cross-nested logit model to identify complex substitution patterns in migration

Beine, Michel
•
Bierlaire, Michel  
•
Docquier, Frederic
February 27, 2025
Journal Of Economic Geography

We propose a cross-nested logit (CNL) approach to investigate how individuals adjust their migration decisions in response to changes in the global landscape. In contrast to the widely used logit model, the CNL enables more intricate substitution patterns among destinations. Leveraging migration aspiration data from India, we demonstrate that the CNL approach outperforms competing approaches in terms of model fit and predictive accuracy. It reveals greater heterogeneity in responses to shocks, and uncovers intricate and intuitive substitution patterns. Our analysis underscores the limited substitutability between the home and foreign alternatives, as well as within specific subgroups of destination countries.

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Type
research article
DOI
10.1093/jeg/lbaf007
Web of Science ID

WOS:001436360800001

Author(s)
Beine, Michel

University of Luxembourg

Bierlaire, Michel  

École Polytechnique Fédérale de Lausanne

Docquier, Frederic

IZA Institute Labor Economics

Date Issued

2025-02-27

Publisher

OXFORD UNIV PRESS

Published in
Journal Of Economic Geography
Subjects

international migration

•

discrete choice modeling

•

independence from irrelevant alternatives

•

cross-nested logit

•

migration aspirations

•

C25

•

F22

•

J61

Editorial or Peer reviewed

REVIEWED

Written at

EPFL

EPFL units
TRANSP-OR  
Available on Infoscience
March 14, 2025
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/247833
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