Premium
THE WELL‐BEING OF NATIONS: ESTIMATING WELFARE FROM INTERNATIONAL MIGRATION
Author(s) -
Lee Sanghoon,
Lee Seung Hoon,
Lin Jeffrey
Publication year - 2021
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/iere.12511
Subject(s) - welfare , economics , complement (music) , measure (data warehouse) , preference , econometrics , revealed preference , quality (philosophy) , public economics , microeconomics , computer science , market economy , biochemistry , chemistry , philosophy , epistemology , database , complementation , gene , phenotype
The limitations of GDP as a measure of welfare are well known. We propose a new method of estimating the well‐being of nations. Using gross bilateral international migration flows and a discrete choice model in which everyone in the world chooses a country in which to live, we estimate each country's overall quality of life. Our estimates, by relying on revealed preference, complement previous estimates of well‐being that consider only income or a small number of factors, or rely on structural assumptions about how these factors contribute to well‐being.