| The Unification of Europe in 1992 provides researchers with the opportunity to explore migration issues without having to deal with legal restrictions. As the Maastricht treaty, signed in Netherlands in February of 1992, clearly states, it is the Union's objective to facilitate the free movement of persons. The purpose of this thesis is to examine the hypothesis that migration is fiscally induced and its efficiency concerns. The provision of migration data by OECD allows for the examination of this hypothesis in an international setting for the first time. Using data on inflows and outflows of migrants I establish the importance of fiscal variables on the decision making process of a potential migrant. A conditional logit model is used in order to estimate the effects of different variables on the migrating decision. The key fiscal variable is proven to be statistically significant in all models used, and in 86% of the cases it has the anticipated size. After having established the importance of fiscal factors, the question that arises is whether or not this process is efficient. Efficiency in this case suggests that neither over-concentration nor under-concentration of residents must be observed in the countries members. Signs of efficiency are observed, although a larger sample of migration data is needed for a conclusive statement to be made. |
