nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2007‒05‒19
twelve papers chosen by
Yuji Tamura
Trinity College Dublin

  1. The Role of Remittances in Migration Decision : Evidence from Turkish Migration By Sule Akkoyunlu; Boriss Siliverstovs
  2. You Can Take it with You! The Returns to Foreign Human Capital of Male Temporary Foreign Workers By Casey Warman
  3. International Migration: A Panel Data Analysis of the Determinants of Bilateral Flows By Mayda, Anna Maria
  4. Earnings and Occupational Attainment: Immigrants and the Native Born By Barry R Chiswick; Paul W Miller
  5. Matching Language Proficiency to Occupation: The Effect on Immigrants' Earnings By Barry R Chiswick; Paul W Miller
  6. Occupational Language Requirements and the Value of English in the US Labor Market By Barry R Chiswick; Paul W Miller
  7. Work-related migration and poverty reduction in Nepal By Glinskaya, Elena; Bontch-Osmolovski, Mikhail; Lokshin, Michael
  8. Ethnic Inequality in Canada: Economic and Health Dimensions By Ellen M. Gee; Karen M. Kobayashi; Steven Prus
  9. Urban growth and decline in Europe By Maarten Bosker; Gerard Marlet
  10. Does Welfare Policy Affect Residential Choices? Evidence from a Natural Experiment By Jon H. Fiva
  11. Globalisation and Shortages of Skilled Labour in Pacific Island Countries: A Case Study of Australia By M A B Siddique
  12. Les effets de la migration sur le chômage marocain : une analyse en équilibre général calculable statique By Fida Karam; Bernard Decaluwé

  1. By: Sule Akkoyunlu; Boriss Siliverstovs
    Abstract: In this study we analyse the impact of workers' remittances on the decision to migrate by means of cointegration analysis. In traditional migration theories, especially in human capital models, the decision to migrate is based upon comparison of expected future incomes in the sending and the receiving countries adjusted for the cost of migration. By contrast, the new economics of labour migration suggests that the migration decision is made jointly by the migrant and his family. One important element of this theory is the role of remittances that is absent in traditional migration theories. In this paper we test traditional migration theories against the new economics of labour migration. The study covers the Turkish migration to Germany over the period 1964-2004. A single cointegrating relation between the migration inflows and the relative income ratio between Germany and Turkey, the unemployment rates in Germany and Turkey, the trade intensity variable, and workers' remittances (relative to Turkish GDP) is found. We find workers' remittances to be significant in explaining migration both in the short- as well as in the long-run.
    Keywords: Migration, trade, remittances, the new economic of migration, cointegration
    JEL: J61 F22 C32
    Date: 2007
  2. By: Casey Warman (Queen's University)
    Abstract: The research on immigration has found falling labor market outcomes of immigrants in many Western countries. In Canada, one of the major causes has been the decline in the returns to foreign work experience. Using the 1991, 1996 and 2001 Canadian Census Master Datafiles and applying both parametric and semiparametric techniques, it is found that unlike recently landed male immigrants, temporary foreign workers have no difficulty transferring their human capital to the Canadian labor market and in particular, they obtain very high returns to their foreign work experience. This is even true for temporary foreign workers from non-traditional backgrounds, a group that has had particular difficulty receiving returns to their foreign work experience for recent immigrant cohorts and now composes the majority of Canada’s immigration. It is likely that this premium can be partially attributed to the different selection process that temporary foreign workers and immigrants enter Canada under. While immigrants for the most part are selected by the government, the selection process for temporary foreign workers is driven by employers and employers may be better able to assess the transferability of the worker’s foreign human capital.
    Keywords: Immigrants, Earnings, Temporary Foreign Workers, Partial linear models, Nonparametric regressions, Canada, Nonpermanent residents, semiparametric
    JEL: J7 J15 J24 J31
    Date: 2007–05
  3. By: Mayda, Anna Maria
    Abstract: In this paper I empirically investigate the determinants of migration inflows into fourteen OECD countries by country of origin, between 1980 and 1995. I analyze the effect on migration of average income and income dispersion in destination and origin countries. I also examine the impact of geographical, cultural, and demographic factors as well as the role played by changes in destination countries' migration policies. My analysis both delivers estimates consistent with the predictions of the international migration model and generates empirical puzzles.
    Keywords: Determinants; International Migration; Migration Policy; Push and Pull Factors
    JEL: F1 F22
    Date: 2007–05
  4. By: Barry R Chiswick (Department of Economics, The University of Illinois at Chicago and The IZA-Institute for the Study of Labor); Paul W Miller (UWA Business School, The University of Western Australia)
    Abstract: This paper examines the determinants of occupational attainment and the impact of occupation on earnings. Results for both the native born and foreign born are presented, and these provide insights as to the earnings penalties associated with the lessthan- perfect international transferability of human capital skills. It shows that around 50 percent of the earnings gains associated with years of schooling derives from interoccupational mobility. When occupation is held constant, there is a large increase in the effect on earnings of pre-immigration labor market experience for the foreign born, but little change in either the payoff to labor market experience for the native born, or in the premium for post-arrival labor market experience for the foreign born. The estimates of the models of occupational attainment show that years of schooling, and, among the foreign born, proficiency in English, are the key factors determining access to high-paying occupations. Labor market experience has little effect on occupational outcomes among the native born. However, evaluated at 10 years, foreign labor market experience has a modest negative impact on current occupational status. Examination of this negative effect using quantile regression shows that it is concentrated among those in high status jobs.
    Keywords: Immigrants, Occupation, Earnings
    JEL: J24 J31 J F22
    Date: 2007
  5. By: Barry R Chiswick (Department of Economics, The University of Illinois at Chicago and The IZA-Institute for the Study of Labor); Paul W Miller (UWA Business School, The University of Western Australia)
    Abstract: This paper analyzes the effect on earnings of the matching of English language skills to occupational requirements. It uses data from the Occupational Information Network (O*NET) database and a “Realized Matches” procedure to quantify expected levels of English skills in each of over 500 occupations in the US Census. Earnings data from the 2000 US Census for foreign-born adult male workers are then examined in relation to these occupational English requirements. The analyses show that earnings are related to correct matching of an individual’s language skills and that of his occupation. Moreover, the findings are robust with respect to a range of measurement and specification issues. Immigrant settlement policy may have a role to play in matching immigrants to jobs that use their language skills most effectively.
    Keywords: English Language, Earnings, Immigrants, Schooling
    JEL: J24 J31 F22
    Date: 2007
  6. By: Barry R Chiswick (Department of Economics, The University of Illinois at Chicago and The IZA-Institute for the Study of Labor); Paul W Miller (UWA Business School, The University of Western Australia)
    Abstract: This paper is concerned with the English language requirements (both level and importance) of occupations in the United States, as measured by the O*NET database. These scores are linked to microdata on employed adult (aged 25 to 64) males, both native born and foreign born, as reported in the 2000 Census, one percent sample. Working in an occupation that requires greater English language skills, whether measured by the level of these skills or the importance of English for performing the job, has a large effect on earnings among the native born, and an even larger effect among the foreign born. This effect is reduced by 50 percent, but is still large, when worker characteristics, including their own English language skills, are held constant. Earnings increase with the respondent’s own proficiency in English, with the English proficiency required for the occupation, and when those with high levels of proficiency work in jobs requiring English language skills (interaction effect). There is, therefore, a strong economic incentive for the matching of worker’s English skills and the occupation’s requirements, and this matching does tend to occur in the labor market.
    Keywords: English Language, Earnings, Occupation, Immigrants, Schooling
    JEL: J24 J31 J62 F22
    Date: 2007
  7. By: Glinskaya, Elena; Bontch-Osmolovski, Mikhail; Lokshin, Michael
    Abstract: Using two rounds of nationally representative household survey data in this study, the authors measure the impact on poverty in Nepal of local and international migration for work. They apply an instrumental variable approach to deal with nonrandom selection of migrants and simulate various scenarios for the different levels of work-related migration, comparing observed and counterfactual household expenditure distribution. The results indicate that one-fifth of the poverty reduction in Nepal occurring between 1995 and 2004 can be attributed to increased levels of work-related migration and remittances sent home. The authors also show that while the increase in work migration abroad was the leading cause of this poverty reduction, internal migration also played an important role. The findings show that strategies for economic growth and poverty reduction in Nepal should consider aspects of the dynamics of domestic and international migration.
    Keywords: Population Policies,Anthropology,Rural Poverty Reduction,Consumption,Small Area Estimation Poverty Mapping
    Date: 2007–05–01
  8. By: Ellen M. Gee; Karen M. Kobayashi; Steven Prus
    Abstract: This study examines ethnic based differences in economic and health status. We combine existing literature with our analysis of data from the Canadian Census and National Population Health Survey. If a given sub-topic is well researched, we summarize the findings; if, on the other hand, less is known, we present data placing them in the context of whatever literature does exist. Our findings are consistent with existing literature on ethnic inequalities in Canada. Recent immigrants with a mother tongue other than English or French are among the most economically disadvantaged in Canadian society, though the results vary depending on gender and ethnic background. In fact economic inequality according to type of occupation can be attributed to gender rather than ethnicity; that is, the Canadian labour force continues to be more gender- than ethnically-differentiated. Yet recent immigrants, especially from Asia, are advantaged in health outcomes compared to Canadian-born persons – the “healthy immigrant” effect. Interestingly they are less likely to report having a physical check-up and, for women (especially Asian-born women), a mammogram within the last year compared to their Canadian-born counterparts. Given the significance of both gender and ethnicity as predictors of well-being, future research should examine the intersection between the two identity markers and their relationship to social inequality.
    Keywords: ethnicity, immigration, language, gender, income, occupation, health
    JEL: I18 J15
    Date: 2007–05
  9. By: Maarten Bosker; Gerard Marlet
    Abstract: In this paper we examine growth differences between European cities. We have used the Urban Audit, a rather new dataset from Eurostat. After clarifying the merits of this dataset as well as some of its limitations, we provide some detailed characteristics of city growth in the European Union. This shows that urban growth in the EU is pretty persistent and is still, in spite of further European integration, largely driven by growth of national born population; non-national European born and non-European born migrants contribute only marginally to urban growth differentials. Moreover differences in birth rates explain a substantial part of the variation in (national-born population) growth rates. Controlling for these differences in birth rates, we look for the determinants of migration-driven European city growth relative to average city growth in the EU as a whole as well as to average national city growth, meanwhile distinguishing between national, non-national EU and non-EU population growth. Our results suggest that, by and large, the smaller, less dense, safer, amenity-rich cities with high levels of GDP per capita are growing fastest. When focussing on national, EU and non-EU population growth, we moreover find that nationals are attracted to the less dense, amenity-rich, more productive cities; that EU nonnationals are concentrated in cities with high levels of human capital; and that non-EU population growth is determined by climate and by employment structure.
    Keywords: European urban growth
    JEL: R00 R11 O18
    Date: 2006–11
  10. By: Jon H. Fiva (Statistics Norway)
    Abstract: This paper studies how changes in welfare benefit levels affect welfare recipients’ residential choices. Although several empirical studies have stressed that welfare policy may affect residential choices of welfare recipients, few studies have simultaneously taken into account that residential choices of welfare recipients also affect welfare policy. The main contribution of this paper is to address this policy endogeneity by utilizing a policy reform as a natural experiment. The results show that welfare policy exerts a nontrivial effect on residential choices of welfare recipients. Moreover, I show that ignoring the policy endogeneity may give rise to a downward bias in the estimated migration responses.
    Keywords: Welfare Benefits; Migration; Policy Endogeneity
    JEL: I38 H73 H77 R23
    Date: 2007–05
  11. By: M A B Siddique (UWA Business School, The University of Western Australia)
    Abstract: During the past two decades, the Australian economy has experienced fundamental changes influenced by the increasing propagation of globalisation. Globalising forces have reduced barriers to labour mobility across countries and economies. Concurrently there has been an increase in the importance of the ‘knowledge economy’ and thus the demand for highly skilled workers. The combination of these factors has increased the competition for highly skilled workers across national economies and in particular among Pacific Island countries (such as New Zealand and Fiji) in which the domestic demand for highly skilled labour outstrips the available domestic supply. The primary objective of this article is to analyse the impact of globalisation on the Australian labour market with a focus on shortages of skilled labour in Australia. The paper also examines the implications of shortages of skilled labour for other Pacific Island countries and suggests policy initiatives in this area.
    Date: 2007
  12. By: Fida Karam (CES - Centre d'économie de la Sorbonne - [CNRS : UMR8174] - [Université Panthéon-Sorbonne - Paris I]); Bernard Decaluwé (Université Laval - [Département d'Economie])
    Abstract: La littérature économique récente sur l'impact de la migration sur le pays d'origine n'a pas réussi à analyser l'effet de la migration sur le chômage et le taux de salaire surtout dans les zones urbaines. A l'aide d'un MEGC détaillé appliqué à l'économie marocaine, nous sommes capables de montrer que, si nous tenons compte simultanément de l'émigration marocaine vers l'Union Européenne, l'immigration subsaharienne vers le Maroc et la migration rural-urbain, l'impact sur le taux de salaire et le chômage est ambigu.
    Keywords: Marché de travail imparfait, migration, modèle d'équilibre général calculable.
    Date: 2007–05–10

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