An analysis of the determinants influencing labour migration : a gravity model approach : Malta’s case

Abstract

Migration, without a doubt, is a crucial social and political debate across the globe. Particularly, increased migration during recent years has mainly pertained to labour migration, both temporary and permanent. As a matter of fact, the influx of foreign workers in Malta has increased significantly in recent years, rising over 55,000 in 2018 - equivalent to 22.5 per cent of employment in the country. The core objective of this research is to focus on identifying the main determinants in attracting such labour migration flows to Malta. Specifically, this research is primarily aimed at addressing relevant research questions currently of major interest in the country: (i) what are the key determinants that are attracting foreign workers to Malta, (ii) has the significance of such determinants changed over the years, and (iii) do such determinants vary depending on the country of origin of migrant workers.

A total of 60 countries were included in the sample population and the study was carried out using data that spanned over seven years (2012 - 2018). An augmented gravity model approach using pooled OLS estimation was run. In an effort to meet the research objectives, a number of specifications were estimated for different time periods (2012 – 2018, 2012 – 2014 and 2015 – 2018) and distinct migrant groups (all countries, EU nations and third countries). The overall findings correspond to literature in this field, with economic factors being indeed influential in the decision to migrate. Differences across years were also observed and variances in behaviours between EU nationals and TCNs were similarly established.