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

Net migration has become the main factor driving N orwegian population growth. This article explores how changes in regulations and immigration policies have affected gross immigration to N orway. 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 N orway's membership of the European economic area since 1994 and inclusion in the S chengen area in 2001 have resulted in higher immigration. The enlargement of the EU in 2004 and 2007 substantially increased immigration to N orway. By 2010, the EU ‐related changes in regulations increased total immigration by some 20 per cent compared to a counterfactual situation where N orway did not become party to either of these agreements. The partial and accumulated effect on the total population in N orway in 2010 is estimated to be about 2 per cent.