The Effect on Immigration of Changes in Regulations and Policies: A Case Study

Abstract:

Net migration has become the main factor driving Norwegian population growth. This article explores how changes in regulations and immigration policies have affected gross immigration to Norway. As in previous econometric studies, it finds that income differences and income distribution have a bearing on immigration, as well as aspects of the labour market. Various immigration policies have largely had the expected effects, and Norway's membership of the European economic area since 1994 and inclusion in the Schengen area in 2001 have resulted in higher immigration. The enlargement of the EU in 2004 and 2007 substantially increased immigration to Norway. By 2010, the EU-related changes in regulations increased total immigration by some 20 per cent compared to a counterfactual situation where Norway did not become party to either of these agreements. The partial and accumulated effect on the total population in Norway in 2010 is estimated to be about 2 per cent.