AN EMPIRICAL INVESTIGATION OF THE RELATIONSHIP BETWEEN MIGRATION AND HUMAN CAPITAL: A PANEL DATA ANALYSIS FOR SELECTED DEVELOPED COUNTRIES

Abstract

This study analyses the effects of health and education expenditures and economic growth on international migration over the 2000-2021 period for the sample of developed countries that receive the highest number of migrants. Using panel data analysis, the effects of these three variables on migration mobility are found to be positive and statistically significant. According to the findings, a 1% increase in health expenditures leads to a 0.39% increase in the international migration rate, while a 1% increase in education expenditures increases this rate by 0.65%. Similarly, a 1% increase in economic growth increases the migration rate by 0.31%. In addition, while the effect of the population over the age of 65, which is used as an independent variable, on migration is not found to be statistically significant, it is revealed that the increase in the proportion of young population has a significant effect on migration. Based on these findings, it can be suggested that developed countries receiving immigrants should strengthen their health and education infrastructure, expand economic opportunities, and develop inclusive policies targeting young people in order to attract and integrate young and skilled immigrants into their societies.