nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2007‒04‒28
27 papers chosen by
Yuji Tamura
Trinity College Dublin

  1. Return Migration: Theory and Empirical Evidence By Christian Dustmann; Yoram Weiss
  2. Can migration reduce educational attainments? Depressing evidence from Mexico By David McKenzie; Hillel Rapoport
  3. Self-selection patterns in Mexico-U.S. migration: The role of migration networks By David McKenzie; Hillel Rapoport
  4. Ethnic Minority Immigrants and their Children in Britain By Christian Dustmann; Nikolaos Theodoropoulos
  5. Gender and Ethnicity-Married Immigrants in Britain By Christian Dustmann; Francesca Fabbri
  6. The Labour Market Impact of Immigration: Quasi-Experimental Evidence By Albrecht Glitz
  7. Immigrants in the British Labour Market By Christian Dustmann; Francesca Fabbri
  8. Ethnic Enclaves and Immigrant Labour Market Outcomes: Quasi-Experimental Evidence By Anna Piil Damm
  9. Employment, Wage Structure, and the Economic Cycle: Differences between Immigrants and Natives in Germany and the UK By Christian Dustmann; Albrecht Glitz; Thorsten Vogel
  10. Ethnic Identification, Intermarriage, and Unmeasured Progress by Mexican Americans By Stephen J. Trejo; Brian Duncan
  11. Childbearing dynamics of couples in a universalistic welfare state: the role of labor-market status, country of origin, and gender By Gunnar Andersson; Kirk Scott
  12. Giving Up Foreign Names: An Empirical Examination of Surname Change and Earnings By Arai, Mahmood; Skogman Thoursie, Peter
  13. Ethnic Segregation and Educational Outcomes in Swedish Comprehensive Schools By Szulkin, Ryszard; Jonsson, Jan O.
  14. The Impact of Immigration on the Structure of Male Wages: Theory and Evidence from Britain By Marco Manacorda; Alan Manning; Jonathan Wadsworth
  15. Assimilation via Prices or Quantities? Sources of Immigrant Earnings Growth in Australia, Canada and the United States By Heather Antecol; Peter Kuhn; Stephen J. Trejo
  16. The Power of the Family By Alberto Alesina; Paola Giuliano
  17. Tipping and the Dynamics of Segregation By David Card; Alexandre Mas; Jesse Rothstein
  18. Understanding Attitudes to Immigration: The Migration and Minority module of the first European Social Survey By David Card; Christian Dustmann; Ian Preston
  19. Why are people more pro-trade than pro-migration? By Anna Maria Mayda
  20. Regional Labour Mobility in the European Union: Adjustment Mechanism or Disturbance? By Paul Cavelaars; Jeroen Hessel
  21. Measuring International Skilled Migration: New Estimates Controlling for Age of Entry By Michel Beinea; Frédéric Docquier; Hillel Rapoport
  22. The Brain Drain and the World Distribution of Income and Population By Andrew Mountford; Hillel Rapoport
  23. Remittances and inequality: A dynamic migration model By Frédéric Docquier; Hillel Rapoport; I-Ling Shen
  24. Remittances and the Dutch disease By Pablo A. Acosta; Emmanuel K.K. Lartey; Federico S. Mandelman
  25. Remittances and the real exchange rate By Bussolo, Maurizio; Molina, Luis; Lopez, Humberto
  26. Latin Americans of Japanese origin (Nikkeijin) working in Japan : a survey By Goto, Junichi
  27. Les effets de la migration sur le chômage marocain : une analyse en équilibre général calculable statique. By Fida Karam; Bernard Decaluwé

  1. By: Christian Dustmann (Centre for Research and Analysis of Migration, Department of Economics, University College London); Yoram Weiss (The Eitan Berglas School of Economics, Tel Aviv University)
    Abstract: In this paper we discuss forms of migration that are non-permanent. We focus on temporary migrations where the decision to return is taken by the immigrant. These migrations are likely to be frequent, and we provide some evidence for the UK. We then develop a simple model which rationalizes the decision of a migrant to return to his home country, despite a persistently higher wage in the host country. We consider three motives for a temporary migration: Differences in relative prices in host- and home country, complementarities between consumption and the location where consumption takes place, and the possibility of accumulating human capital abroad which enhances the immigrant's earnings potential back home. For the last return motive, we discuss extensions which allow for immigrant heterogeneity, and develop implications for selective in- and out- migration.
    Keywords: Life Cycle Models, International Migration, Return Migration
    JEL: D9 F22
    Date: 2007–02
  2. By: David McKenzie (Development Research Group, World Bank); Hillel Rapoport (Department of Economics, Bar-Ilan University, CADRE, University of Lille II, and Stanford Center for International Development)
    Abstract: This paper examines the impact of migration on educational attainments in rural Mexico. Using historical migration rates by state to instrument for current migration, we find evidence of a significant negative effect of migration on schooling attendance and attainments of 12 to 18 year-old boys and of 16 to 18 year-old girls. IV-Censored Ordered Probit results show that living in a migrant household lowers the chances of boys completing junior high-school and of boys and girls completing high-school. The negative effect of migration on schooling is somewhat mitigated for younger girls with low educated mothers, which is consistent with remittances relaxing credit constraints on education investment for the very poor. However, for the majority of rural Mexican children, family migration depresses educational attainment. Comparison of the marginal effects of migration on school attendance and on participation to other activities shows that the observed decrease in schooling of 16 to 18 year olds is accounted for by current migration of boys and increases in housework for girls.
    Keywords: Migration, migrant networks, education attainments, Mexico
    JEL: O15 J61 D31
    Date: 2006–03
  3. By: David McKenzie (World Bank, Development Economics Research Group); Hillel Rapoport (Department of Economics, Bar-Ilan University, CADRE, Université de Lille 2, and CReAM, University College London)
    Abstract: This paper examines the role of migration networks in determining self-selection patterns of Mexico-U.S. migration. We first present a simple theoretical framework showing how such networks impact on migration incentives at different education levels and, consequently, how they are likely to affect the expected skill composition of migration. Using survey data from Mexico, we then show that the probability of migration is increasing with education in communities with low migrant networks, but decreasing with education in communities with high migrant networks. This is consistent with positive self-selection of migrants being driven by high migration costs, as advocated by Chiquiar and Hanson (2005), and with negative self-selection of migrants being driven by lower returns to education in the U.S. than in Mexico, as advocated by Borjas (1987).
    Keywords: Migration, migration networks, educational attainments, self-selection, Mexico
    JEL: O15 J61 D31
    Date: 2007–01
  4. By: Christian Dustmann (Centre for Research and Analysis of Migration, Department of Economics, University College London); Nikolaos Theodoropoulos (Centre for Research and Analysis of Migration(CReAM), University College London.)
    Abstract: According to the 2001 UK Census ethnic minority groups account for 4.6 million or 7.9 percent of the total UK population. The 2001 British Labour Force Survey indicates that the descendants of Britain’s ethnic minority immigrants form an important part of the British population (2.8 percent) and of the labour force (2.1 percent). In this paper, we use data from the British Labour Force Survey over the period 1979-2005 to investigate educational attainment and economic behaviour of ethnic minority immigrants and their children in Britain. We compare different ethnic minority groups born in Britain to their parent’s generation and to equivalent groups of white native born individuals. Intergenerational comparisons suggest that British born ethnic minorities are on average more educated than their parents as well more educated than their white native born peers. Despite their strong educational achievements, we find that ethnic minority immigrants and their British born children exhibit lower employment probabilities than their white native born peers. However, significant differences exist across immigrant/ethnic groups and genders. British born ethnic minorities appear to have slightly higher wages than their white native born peers. But if British born ethnic minorities were to face the white native regional distribution and were attributed white native characteristics, their wages would be considerably lower. The substantial employment gap between British born ethnic minorities and white natives cannot be explained by observable differences. We suggest some possible explanations for these gaps.
    Keywords: Ethnic Minorities/Immigrants, Education, Intergenerational comparisons, Employment, Wages
    JEL: J15 I20 J62 J21 J30
    Date: 2006–10
  5. By: Christian Dustmann (Department of Economics and Centre for Research and Analysis of Migration (CReAM), University College London); Francesca Fabbri (Department of Economics, University of Munich)
    Abstract: In this paper we investigate economic activity of female immigrants and their husbands in Britain. We distinguish between two immigrant groups: foreign born females who belong to an ethnic minority group and their husbands, and foreign born females who are white and their husbands. We compare these to native born white women and their husbands. Our analysis deviates from the usual mean analysis and investigates employment, hours worked and earnings for males and females, as well as their combined family earnings, along the distribution of husbands’ economic potential. We analyse the extent to which economic disadvantage may be reinforced on the household level. We investigate to what extent disadvantage can be explained by differences in observable characteristics. We analyse employment assimilation for all groups over the migration cycle. Our main results are that white female immigrants and their husbands are quite successful, with an overall advantage in earnings over white native born both individually and at the household level. On the other hand, minority immigrants and their husbands are less successful, in particular at the lower end of the husband’s distribution of economic potential. This is mainly due to low employment of both genders, which leads to disadvantage in earnings, intensified at the household level. Only part of this differential can be explained by observable characteristics. Over the migration cycle, the data suggests that employment differentials are large at entry for white immigrant females, and even larger for minority females, but the gap to the native born closes. Assimilation is more rapid for white females.
    Keywords: Migration, Ethnicity, Attitudes
    Date: 2005–08
  6. By: Albrecht Glitz (Centre for Research and Analysis of Migration, Department of Economics, University College London)
    Abstract: After the fall of the Berlin Wall, ethnic Germans living in the former Soviet Union and the Warsaw Pact countries had the possibility to migrate to Germany. Within 15 years, 2.8 million individuals moved. Upon arrival these immigrants were exogenously allocated to different regions by the administration in order to ensure an even distribution across the country. Their inflows can therefore be seen as a natural experiment of immigration, avoiding the typical endogeneity problem of immigrant inflows with regard to local labour market conditions. We analyse the effect of these exogenous inflows on relative skill-specific employment and wage rates of the resident population in different geographical areas between 1996 and 2001. The variation we exploit in the empirical estimations arises primarily from differences in the initial skill composition across regions. Skill groups are defined either based on occupations or educational attainment. For both skill definitions, our results indicate a displacement effect of around 4 unemployed resident workers for every 10 immigrants that find a job. We do not find evidence for any detrimental effect on average wages.
    Keywords: Immigration, Labour Market Impact, Skill Groups, Germany
    JEL: J21 J31 J61
    Date: 2006–11
  7. By: Christian Dustmann (Department of Economics and Centre for Research and Analysis of Migration (CReAM), University College London); Francesca Fabbri (Munich Graduate School of Economics and Centre for Research and Analysis of Migration (CReAM))
    Abstract: The main objective of this paper is to provide a comprehensive description of the economic outcomes and performance of Britain’s immigrant communities today and over the last two decades. We distinguish between males and females and, where possible and meaningful, between immigrants of different origin. Our comparison group are white British born individuals. Our data source is the British Labour Force Survey (LFS). We first provide descriptive information on the composition of immigrants in Britain, and how this has changed over time, their socio-economic characteristics, their industry allocation, and their labour market outcomes. We then investigate various labour market performance indicators (labour force participation, employment, wages, and self-employment) for immigrants of different origin, and compare them to British-born whites of same age, origin, and other background characteristics. We find that over the last 20 years, Britain’s immigrant population has changed in origin composition, and has dramatically improved in skill composition - not dissimilar from the trend in the British born population. We find substantial differences in economic outcomes between white and ethnic minority immigrants. Within these groups, immigrants of different origin differ considerably with respect to their education and age structure, their regional distribution, and sector choice. In general, white immigrants are more successful in Britain, although there are differences between groups of different origin. The investigation shows that immigrants from some ethnic minority groups, and in particular females, are particularly disadvantaged, with Pakistanis and Bangladeshis at the lower end of this scale.
    Keywords: International Migration, Economic Performance
    JEL: J15
    Date: 2005–10
  8. By: Anna Piil Damm (CAM and Department of Economics, Aarhus School of Business)
    Abstract: This study investigates empirically how residence in ethnic enclaves affects labour market outcomes of refugees. Self-selection into ethnic enclaves in terms of unobservable characteristics is taken into account by exploitation of a Danish spatial dispersal policy which randomly disperses new refugees across locations conditional on six individual-specific characteristics. The results show that refugees with unfavourable unobserved characteristics are found to self-select into ethnic enclaves. Furthermore, taking account of negative self-selection, a relative standard deviation increase in ethnic group size on average increases the employment probability of refugees by 4 percentage points and earnings by 21 percent. I argue that in case of heterogenous treatment effects, the estimated effects are local average treatment effects.
    Keywords: Migration,
    Date: 2006–08
  9. By: Christian Dustmann (Centre for Research and Analysis of Migration, Department of Economics, University College London); Albrecht Glitz (Centre for Research and Analysis of Migration, Department of Economics, University College London); Thorsten Vogel (Humboldt Universität zu Berlin and Centre for Research and Analysis of Migration.)
    Abstract: Differences in the cyclical pattern of employment and wages of immigrants relative to natives have largely gone unnoticed in the migration literature. In this paper we show that immigrants and natives react differently to the economic cycle. Based on over two decades of micro data, our investigation is for two of the largest immigrant receiving countries in Europe which at the same time are characterised by different immigrant populations as well as different economic cycles, Germany and the UK. Understanding the magnitude, nature and possible causes of differences in responses is relevant for assessing the economic performance of immigrant communities over time. We show that there are substantial differences in cyclical responses between immigrants and natives. Our analysis illustrates the magnitude of these differences, while distinguishing between different groups of immigrants. Differences in responses may be due to differences in the skill distribution between immigrant groups and natives, or differences in demand for immigrants and natives of the same skills due to differential allocation of immigrants and natives across industries and regions. We demonstrate that substantial differences in cyclical patterns remain, even within narrowly defined groups. Finally, we estimate a more structural factor type model that, using regional variation in economic conditions, separates responses to economic shocks from a secular trend and allows us to obtain a summary measure for these differences within education groups.
    Keywords: Immigration, Wage Structure, Business Cycle
    JEL: E32 F22 J31
    Date: 2006–09
  10. By: Stephen J. Trejo (Department of Economics, University of Texas at Austin); Brian Duncan (Department of Economics, University of Colorado at Denver)
    Abstract: Using Census and CPS data, we show that U.S.-born Mexican Americans who marry non-Mexicans are substantially more educated and English proficient, on average, than are Mexican Americans who marry co-ethnics (whether they be Mexican Americans or Mexican immigrants). In addition, the non-Mexican spouses of intermarried Mexican Americans possess relatively high levels of schooling and English proficiency, compared to the spouses of endogamously married Mexican Americans. The human capital selectivity of Mexican intermarriage generates corresponding differences in the employment and earnings of Mexican Americans and their spouses. Moreover, the children of intermarried Mexican Americans are much less likely to be identified as Mexican than are the children of endogamous Mexican marriages. These forces combine to produce strong negative correlations between the education, English proficiency, employment, and earnings of Mexican-American parents and the chances that their children retain a Mexican ethnicity. Such findings raise the possibility that selective ethnic “attrition” might bias observed measures of intergenerational progress for Mexican Americans.
    Keywords: Migration,
    Date: 2006–02
  11. By: Gunnar Andersson (Max Planck Institute for Demographic Research, Rostock, Germany); Kirk Scott (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: In this paper, we provide a study of childbearing dynamics by the labor-market status of co-residing one- and two-child parents in Sweden. We apply event-history techniques to longitudinal register data on life histories of foreign-born mothers from ten different countries and the partners to these women as well as a sample of Swedish-born mothers and their partners. Our context is a universalistic welfare state geared towards gender and social equality where formal social rights largely are independent of a person’s civil status, citizenship, and country of origin. We investigate to what extent the associations of parents’ labor-market status with childbearing in Sweden differ between women and men and by country of origin. We find that patterns of association are fairly similar on both these personal dimensions. As measured by the way labor-market activity of parents is related to their subsequent childbearing behavior, we find striking evidence of equality by gender as well as some evidence of integration of immigrants into the dynamics of Swedish society.
    Keywords: Sweden, fertility, immigrants
    JEL: J1 Z0
    Date: 2007–04
  12. By: Arai, Mahmood (Stockholm University Linnaeus Center for Integration Studies - SULCIS); Skogman Thoursie, Peter (Department of Economics, Stockholm University)
    Abstract: In this paper we compare the earnings development for a group of immigrants that changes their names to Swedish-sounding or neutral names with immigrants who retain their names from the same region of birth. Our results indicate that name-changers are apparently similar to name-keepers and the earnings before the name change is essentially the same for both groups. However, an earnings gap after the name change is observed. The earnings gap corresponds to on average approximately 26 percent. Our understanding of the data and our results is that the groups are similar before the name change and that the earnings gap after the name change should be attributed to the name change. Our results should be viewed as evidence of unequal treatment of immigrants and natives in the Swedish labor market.
    Keywords: Ethnic discrimination; earnings development; name change
    JEL: J64 J71
    Date: 2006–12–20
  13. By: Szulkin, Ryszard (Stockholm University Linnaeus Center for Integration Studies - SULCIS); Jonsson, Jan O. (Institutet för Social Forskning (SOFI))
    Abstract: We ask whether ethnic density in Swedish comprehensive schools affect teacher-assigned school grades in ninth grade (age 16). The data, based on two entire cohorts who graduated in 1998 and 1999 (188,000 pupils and 1,043 schools), link school information with Census data on social origin, and enable us to distinguish first- from second generation immigrants. Using multilevel analysis we find the proportion of first, but not the second, generation immigrant pupils in a school to depress grades in general, but particularly for (first generation) immigrant pupils. Passing a threshold of more than 40 percent immigrants reduces grades with around a fifth of a standard deviation, affecting fourteen percent of immigrant children. Our main results are robust to model specifications which address omitted variable bias both at individual- and school-level. One policy implication of our results is that desegregation policies which concentrated on the two per cent most segregated schools would probably improve school results and reduce ethnic inequality.
    Keywords: Ethnic inequality; Immigrant schooling; Educational attainment; Contextual effects; Ethnic inequality; Immigrant schooling
    JEL: I21 J15
    Date: 2007–04–20
  14. By: Marco Manacorda (Department of Economics, QMUL - CEP, LSE and CEPR); Alan Manning (Department of Economics, LSE - CEP, LSE); Jonathan Wadsworth (Department of Economics, RHUL - CEP, LSE and IZA)
    Abstract: Immigration to the UK has risen over time. Existing studies of the impact of immigration on the wages of native-born workers in the UK have failed to find any significant effect. This is something of a puzzle since Card and Lemieux, (2001) have shown that changes in the relative supply of educated natives do seem to have measurable effects on the wage structure. This paper offers a resolution of this puzzle – natives and immigrants are imperfect substitutes, so that an increase in immigration reduces the wages of immigrants relative to natives. We show this using a pooled time series of British cross-sectional micro data of observations on male wages and employment from the mid-1970s to the mid-2000s. This lack of substitution also means that there is little discernable effect of increased immigration on the wages of native-born workers, but that the only sizeable effect of increased immigration is on the wages of those immigrants who are already here.
    Keywords: Wages, Wage Inequality, Immigration
    JEL: J6
    Date: 2006–08
  15. By: Heather Antecol (Department of Economics, Claremont McKenna College); Peter Kuhn (Department of Economics, University of California); Stephen J. Trejo (Department of Economics, University of Texas)
    Abstract: Using 1980/81 and 1990/91 census data from Australia, Canada, and the United States, we estimate the effects of time in the destination country on male immigrants’ wages, employment, and earnings. We find that total earnings assimilation is greatest in the United States and least in Australia. Employment assimilation explains all of the earnings progress experienced by Australian immigrants, whereas wage assimilation plays the dominant role in the United States, and Canada falls in-between. We argue that relatively inflexible wages and generous unemployment insurance in countries like Australia may cause assimilation to occur along the “quantity” rather than the price dimension.
    Date: 2006–02
  16. By: Alberto Alesina; Paola Giuliano
    Abstract: The structure of family relationships influences economic behavior and attitudes. We define our measure of family ties using individual responses from the World Value Survey regarding the role of the family and the love and respect that children need to have for their parents for over 70 countries. We show that strong family ties imply more reliance on the family as an economic unit which provides goods and services and less on the market and on the government for social insurance. With strong family ties home production is higher, labor force participation of women and youngsters, and geographical mobility, lower. Families are larger (higher fertility and higher family size) with strong family ties, which is consistent with the idea of the family as an important economic unit. We present evidence on cross country regressions. To assess causality we look at the behavior of second generation immigrants in the US and we employ a variable based on the grammatical rule of pronoun drop as an instrument for family ties. Our results overall indicate a significant influence of the strength of family ties on economic outcomes.
    JEL: H20 J01
    Date: 2007–04
  17. By: David Card; Alexandre Mas; Jesse Rothstein
    Abstract: In a classic paper, Schelling (1971) showed that extreme segregation can arise from social interactions in white preferences: once the minority share in a neighborhood exceeds a critical "tipping point," all the whites leave. We use regression discontinuity methods and Census tract data from 1970 through 2000 to test for discontinuities in the dynamics of neighborhood racial composition. White population flows exhibit tipping-like behavior in most cities, with a distribution of tipping points ranging from 5% to 20% minority share. The estimated discontinuities are robust to controls for a wide variety of neighborhood characteristics, and are as strong in the suburbs as in tracts close to high-minority neighborhoods, ruling out the main alternative explanations for apparent tipping behavior. In contrast to white population flows, there is no systematic evidence that rents or housing prices exhibit non-linearities around the tipping point. Finally, we relate the location of the estimated tipping points in different cities to measures of the racial attitudes of whites, and find that cities with more tolerant whites have higher tipping points.
    JEL: J15 R21 R31
    Date: 2007–04
  18. By: David Card (Department of Economics, University of California, Berkeley and Centre for Research and Analysis of Migration (CReAM)); Christian Dustmann (Department of Economics and Centre for Research and Analysis of Migration (CReAM), University College London); Ian Preston (Department of Economics and Centre for Research and Analysis of Migration (CReAM), University College London)
    Abstract: Immigration control is an issue that figures prominently in public policy discussions and election campaigns throughout Europe. Although immigration may have positive effects on economic efficiency and growth in the receiving economy, it is often the negative aspects -or perceived negative aspects - of immigration that attract the most attention. In this paper, we use the immigration module of the European Social Survey (ESS), which we developed in collaboration with the ESS survey team, to investigate public opinions about immigration, and the various dimensions of economic, public and private life that individuals feel are affected by immigration. We show that that there is substantial variation in the strength of anti-immigrant opinion across European countries, and that attitudes toward immigration also vary systematically with characteristics such as age, education, and urban/rural location. We propose possible interpretations of some of these regularities.
    Keywords: Migration, Survey, Attitudes
    Date: 2005–06
  19. By: Anna Maria Mayda (Economics Department and School of Foreign Service, Georgetown University)
    Abstract: I analyze individual attitudes towards trade and immigration in comparative terms. I find that individuals are on average more pro-trade than pro-immigration across several countries. I identify a key source of this difference: the cleavage in trade preferences, absent in immigration attitudes, between individuals working in traded as opposed to non-traded sectors.
    Keywords: Immigration Attitudes, Trade Attitudes, Political Economy
    JEL: F22 F1 J61
    Date: 2006–07
  20. By: Paul Cavelaars; Jeroen Hessel
    Abstract: We analyse the role of labour mobility as a mechanism for regional adjustment in Europe. We find that only a small share of migration can be explained by economic differences. Moreover, despite European integration and structural reforms, the role of labour migration in regional adjustment has not increased since the late 1980s. We conclude that regional migration in Europe currently acts as a source of disturbances rather than an adjustment mechanism.
    Keywords: labour mobility.
    JEL: F2 J60 R1
    Date: 2007–04
  21. By: Michel Beinea (University of Luxemburg and Université Libre de Bruxelles); Frédéric Docquier (FNRS and IRES, Université Catholique de Louvain); Hillel Rapoport (Department of Economics, Bar-Ilan University, CADRE, Université de Lille 2, and CReAM, University College London)
    Abstract: Recent data on international skilled migration define skilled migrants according to education level independently of whether education has been acquired in the home or in the host country. In this paper we use immigrants’ age of entry as a proxy for where education has been acquired. Data on age of entry are available from a subset of receiving countries which together represent more than 3/4 of total skilled immigration to the OECD. Using these data and a simple gravity model, we estimate the age-of-entry structure of skilled immigration and propose alternative brain drain measures by excluding those arrived before age 12, 18 and 22. The results for 2000 show that on average, 68% of the global brain drain is accounted for by emigration of people aged 22 or more upon arrival (78% and 87% for the 18 and 12 year old thresholds, respectively). For some countries this indeed makes a substantial difference. However, cross-country differences are globally maintained, resulting in extremely high correlation levels between corrected and uncorrected rates. Similar results are obtained for 1990.
    Date: 2006–10
  22. By: Andrew Mountford (Department of Economics, Royal Holloway, University of London); Hillel Rapoport (Department of Economics, Bar-Ilan University, CADRE, Université de Lille 2, and CReAM, University College London)
    Abstract: This paper models the evolution of the world distribution of income and shows that while the distribution of income per capita across economies in the world will be stable in the long run, the world distribution of population may be divergent. The paper then uses this model to analyze the impact of the current trend towards predominantly skilled emigration from poor to rich countries on fertility, human capital formation, and growth, in both the sending and receiving countries. It shows that in the long run, brain drain migration patterns may increase world inequality as relatively poor countries grow large in terms of population. In the short run however, it is possible for world inequality to fall due to rises in GDP per capita in large developing economies with low skilled emigration rates.
    Date: 2007–04
  23. By: Frédéric Docquier (FNRS and IRES, Université Catholique de Louvain); Hillel Rapoport (Department of Economics, Bar-Ilan University, CADRE, Université de Lille 2, and CReAM, University College London); I-Ling Shen (IRES, Université Catholique de Louvain)
    Abstract: We develop a model to study the effects of migration and remittances on inequality in the origin communities. While wealth inequality is shown to be monotonically reduced along the time-span, the short- and the long-run impacts on income inequality may be of opposite signs, suggesting that the dynamic relationship between migration/remittances and inequality may well be characterized by an inverse U-shaped pattern. This is consistent with the findings of the empirical literature, yet offers a different interpretation from the usually assumed migration network effects. With no need to endogenize migration costs through the role of migration networks, we generate the same result via intergenerational wealth accumulation.
    Keywords: Migration, remittances, inequality
    JEL: O11 O15 J61 D31
    Date: 2006–12
  24. By: Pablo A. Acosta; Emmanuel K.K. Lartey; Federico S. Mandelman
    Abstract: Using data for El Salvador and Bayesian techniques, we develop and estimate a two-sector dynamic stochastic general equilibrium model to analyze the effects of remittances in emerging market economies. We focus our study on whether rising levels of remittances result in the Dutch disease phenomenon in recipient economies. We find that, whether altruistically motivated or otherwise, an increase in remittances flows leads to a decline in labor supply and an increase in consumption demand that is biased toward nontradables. The increase in demand for nontradables, coupled with higher production costs, results in an increase in the relative price of nontradables, which further causes the real exchange rate to appreciate. The higher nontradable prices serve as an incentive for an expansion of that sector, culminating in reallocation of labor away from the tradable sector. This resource reallocation effect eventually causes a contraction of the tradable sector. A vector autoregression analysis provides results that are consistent with the dynamics of the model.
    Date: 2007
  25. By: Bussolo, Maurizio; Molina, Luis; Lopez, Humberto
    Abstract: Existing empirical eviden ce indicates that remittances have a positive impact on a good number of development indicators of recipient countries. Yet when flows are too large relative to the size of the recipient economies, as those observed in a number of Latin American countries, they may also bring a number of undesired problems. Among those probably the most feared in this context is the Dutch Disease. This paper explores the empirical evidence regarding the impact of remittances on the real exchange rate. The findings suggest that remittances indeed appear to lead to a significant real exchange rate appreciation. The paper also explores policy options that may somewhat offset the observed effect.
    Keywords: Economic Stabilization,Macroeconomic Management,Economic Theory & Research,Remittances,Pro-Poor Growth and Inequality
    Date: 2007–04–01
  26. By: Goto, Junichi
    Abstract: Since the revision of the Japanese immigration law in 1990, there has been a dramatic influx of Latin Americans, mostly Brazilians, of Japanese origin (Nikkeijin) working in Japan. This is because the revision has basically allowed Nikkeijin to enter Japan legally even as unskilled workers, while the Japanese law, in principle, prohibits foreigners from taking unskilled jobs in the country. In response, the number of these Latin American migrants has increased from practically zero to more than 250,000. The migration of Nikkeijin is likely to have a significant impact on both the Brazilian and the Japanese economies, given the substantial amount of remittances they send to Brazil. The impact is likely to be felt especially in the Nikkeijin community in Brazil. In spite of their importance, the detailed characteristics of Nikkei migrants and the prospect for future migration and remittances are under-researched. The purpose of this paper is therefore to provide a more comprehensive account of the migration of Nikkeijin workers to Japan. The paper contains a brief review of the history of Japanese emigration to Latin America (mostly Brazil), a study of the characteristics of Nikkeijin workers in Japan and their current living conditions, and a discussion on trends and issues regarding immigration in Japan and migration policy. The final part of the paper briefly notes the limitation of existing studies and describes the Brazil Nikkei Household Survey, which is being conducted by the World Bank ' s Development Research Group at the time of writing this p aper. The availability of the survey data will contribute to a better understanding of the Japan-Brazil migration and remittance corridor.
    Keywords: Population Policies,Labor Markets,Skills Development and Labor Force Training,Human Migrations & Resettlements,Voluntary and Involuntary Resettlement
    Date: 2007–04–01
  27. By: Fida Karam (Centre d'Economie de la Sorbonne); Bernard Decaluwé (Université de Laval - Département d'Economie)
    Abstract: Recent economic literature on the impact of migration on the country of origin has not successfully analyzed the effect of migration on unemployment and wage rate especially in urban area. Using a detailed CGE model applied to the moroccan economy, we are able to show that if we take into account simultaneously moroccan emigration to European Union, immigration from Sub-Saharan Africa into Morocco and rural-urban migration, the impact on wage rate and unemployment is ambiguous.
    Keywords: Imperfect labor market, migration, computable general equilibrium model.
    JEL: C68 F22 J44 J61 J64
    Date: 2007–03

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