nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2007‒12‒01
fifteen papers chosen by
Yuji Tamura
Australian National University

  1. Migration as an antidote to rent-seeking? By Fabio Mariani
  2. Burden-sharing or migration management? By Czaika, Mathias; Mayer, Amy
  3. Migration and Trade in a World of Technological Differences: Theory with an Application to Eastern-Western European Integration By Susana Iranzo; Giovanni Peri
  4. Migration, Self-selection and Returns to Education in the WAEMU By Philippe De Vreyer; Flore Gubert; François Roubaud
  5. The other Europeans : inmigration into Latin America and the international labour market (1870-1930) By Blanca Sanchez Alonso
  7. Effects of work requirements on welfare migration By Edmark, Karin
  8. How are Wages set in Beijing? By Jose De Sousa; Sandra Poncet
  9. Urban Poor in China: A Case Study of Changsha By Erqian Zhu; Shunfeng Song
  10. Financial Constraints of Ethnic Entrepreneurship: Evidence from Germany By Jana Bruder; Doris Neuberger; Solvig Raethke-Döppner
  11. What's in a name? A field experiment test for the existence of ethnic discrimination in the hiring process By Bursell, Moa
  12. The statistical properties of the Mutual Information index of multigroup segregation By Ricardo Mora; Javier Ruiz-Castillo
  13. Incentive Effects of Transfers within the Extended Family: The Case of Indonesia By Schueler, Dana
  14. Business Cycles and Remittances: A Comparison of the Cases of Turkish Workers in Germany and Mexican Workers in the US By Sayan, Serdar; Tekin-Koru, Ayca
  15. Les effets de la migration sur le chômage marocain : une analyse en équilibre général calculable statique. By Fida Karam; Bernard Decaluwé

  1. By: Fabio Mariani (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: We develop a new mechanism through which skilled migration may influence economic<br />performance in the sending country. If agents can choose between acting as<br />rent-seekers and engaging in productive activities, and only productive skills are exportable,<br />a positive probability of migration (to a more secure economy) reduces the<br />relative expected returns from rent-seeking, thus decreasing the proportion of skilled<br />workers who opt for ”parasitic” activities. Such an improvement in the allocation of<br />talent may prevail over the loss of skilled workers due to outmigration. However, we<br />show that this result is not robust to the introduction of endogenous protection. If productive<br />workers share their resources between accumulation of productive capital and<br />investment in security, prospective migration may induce a weaker protection against<br />rent-seeking, which in turn might depress average income in the source economy.
    Keywords: Rent-seeking; Skilled migration
    Date: 2007–11
  2. By: Czaika, Mathias; Mayer, Amy
    Abstract: This paper analyses the impact of refugee movements on emergency and development aid allocation decisions of bilateral donors in a political economic framework. We investigate two alternative hypotheses about donor motivations: first, an altruistic burden-sharing policy towards recipient countries that serve as hosts for a significant refugee population, and second, a more self-interested migration prevention policy focusing on recipient countries that actually cause refugee movements. We find some evidence that short-term humanitarian aid is predominantly used for burden-sharing purposes towards major refugee havens, while long-term development assistance is rather allocated to the source countries either to prevent further refugee outflows or to facilitate voluntary repatriation. Furthermore, it is evident that the inflow of asylum seekers into donor countries leads to a reallocation of aid funds to the respective countries of origin.
    Keywords: Refugee burden-sharing, migration prevention, aid allocation
    JEL: F22 H77 J61
    Date: 2007
  3. By: Susana Iranzo; Giovanni Peri
    Abstract: Two prominent features of globalization in recent decades are the remarkable increase in trade and in migratory flows between industrializing and industrialized countries. Due to restrictive laws in the receiving countries and high migration costs, the increase in international migration has involved mainly highly educated workers. During the same period, technology in developed countries has become progressively more skill-biased, increasing the productivity of highly educated workers more than less educated workers. This paper extends a model of trade in differentiated goods to analyse the joint phenomena of migration and trade in a world where countries use different skill-specific technologies and workers have different skill levels (education). We calibrate the model to match the features of the Western European countries (EU-15) and the new Eastern European members of the EU. We then simulate the effects of freer trade and higher labor mobility between the two regions. Even in a free trade regime the removal of the restrictions on labor movements would benefit Europe as a whole by increasing the GNP of Eastern and Western Europe. Interestingly, we also find that the resulting skilled migration (the so-called "brain drain") from Eastern European countries would not only benefit the migrants but, through trade, could benefit the workers remaining in Eastern Europe as well.
    JEL: F16 F22 J31 J61 O52
    Date: 2007–11
  4. By: Philippe De Vreyer (Université de Lille II, DIAL); Flore Gubert (DIAL, IRD, Paris); François Roubaud (DIAL, IRD)
    Abstract: (english) We use a unique set of identical labour force surveys that allow to observe, at the same time, migrants in seven WAEMU countries and their country of origin's labour market. We use these data first to document the patterns of migration flows in the sub-region, second to estimate the determinants of migration behaviour across these countries and to correct the estimated returns to education for the endogeneity of location choice. We finally estimate a structural model to evaluate the impact of expected earnings differentials on the probability of selecting a particular country to reside in. Our results show that Cote d'Ivoire remains the most important immigration country in the sub-region. Our data also suggests that Mali and Burkina Faso have been and still are major labour-exporting countries, largely towards Cote d'Ivoire. Benin and Togo, by contrast, combine both emigration and immigration. Looking at migrants characteristics we find that migrants tend to be less educated than non migrants in both their origin and destination countries, are more likely than natives to work in the informal sector and that they receive lower wages. Our econometric results suggest that not holding account of international migration in estimating returns to education yields upward biased estimates in three countries out of seven and downward biased estimates in two others. However, disparities in returns to education between capital cities do not vanish, suggesting that country-specific amenities and other un-measurable non-wage variables play important roles in the location choice of individuals with different levels of education. We also find that expected earnings differentials have a very significant effect on the choice probabilities: all else equal, people tend to live in countries in which their expected earnings are higher than elsewhere. _________________________________ (français) Nous utilisons les données issues d'enquêtes réalisées simultanément dans sept capitales de l'Union Economique et Monétaire Ouest Africaine pour documenter les caractéristiques des flux migratoires entre pays de l'Afrique de l'Ouest, puis pour estimer un modèle individuel de choix résidentiel faisant intervenir la différence de gains potentielle comme déterminant. Une estimation en trois étapes est réalisée qui permet de contrôler de l'auto-sélection des individus dans les différentes destinations. Nos résultats montrent que la Côte d'Ivoire demeure le premier pays d'accueil des migrants de la sous région, alors que le Burkina Faso et le Mali sont au contraire des pays d'émigration, principalement à destination de la Côte d'Ivoire. Le Bénin et le Togo sont à la fois des pays d'émigration et d'immigration. L'examen des caractéristiques des migrants montre qu'ils tendent à être moins éduqués que les non migrants, aussi bien dans leur pays d'origine que dans leur pays d'accueil, travaillent plus fréquemment dans le secteur informel et reçoivent une rémunération plus faible. Nos estimations économétriques montrent que la prise en compte de l'auto-sélection des individus dans les différentes destinations modifie les rendements estimés de l'éducation dans certains pays. Nous trouvons également que les différences de gains potentielles ont un impact très significatif sur les probabilités de choix et que, toutes autres choses égales par ailleurs, les individus tendent à vivre dans des pays où ils reçoivent des revenus plus élevés.
    Keywords: International migration, Wage differentials,Discrete regressions, qualitative choice models, Migrations internationales, Différences de salaires, Régressions sur variables discrètes, modèles de choix qualitatifs.
    JEL: F22 C35 J31 O15
    Date: 2007–10
  5. By: Blanca Sanchez Alonso
    Abstract: Not all Europeans migrated to the United States. Between 1879 and 1930 13 million of Europeans went to Latin America; however, Latin America is not fully incorporated into current debates on the cost and benefits from Atlantic migration. This paper surveys Latin America immigration experience since the late nineteenth century to 1930. It assesses inferences about European migrants in Latin America derived from the experience of migrants in the United States and questions its validity. The topics covered here include migration trends and chronology, national origin of the flows and the evolution of real wages. New data on the cost of passages for transatlantic migration is also presented. This is followed by an examination of the immigrants’ contribution to economic growth in Latin America dealing basically with the issue of human capital brought in by European immigrants. The extent to which immigrants alter the composition of the labour force and the demographic structure, both in the short and the long run is also examined. A final section concludes with some new avenues for future research.
    Date: 2007–11
  6. By: Dolores Jiménez-Rubio (Universidad de Granada. Dpto. Economía Aplicada)
    Abstract: An important recent change in the Spanish society is the increasing proportion of the population who are immigrants. Immigrants often face situations of social exclusion and disadvantage, circumstances that may affect their health status. Empirical evidence about differences in health status or the utilisation of health services between native and immigrant population is however insufficient. This paper uses the 2003 National Health Survey to explore whether non-Spaniards, for the same level of need, use health care services at the same rate as national citizens. The findings show different patterns of health care use to the disadvantage of immigrants.
    Keywords: Equity in health care, immigrant population, Spanish National Health System
    JEL: I11 J15
    Date: 2007–11–22
  7. By: Edmark, Karin (IFAU - Institute for Labour Market Policy Evaluation)
    Abstract: This study tests for a migration response to the implementation of stricter rules for welfare benefit receipt, in the form of mandatory participation in activation programs for welfare recipients, in Stockholm town districts. The hypothesis is that welfare benefit prone individuals will choose to live in a town district that has no program if they dislike the loss of leisure due to program participation more than they value the contents of the program, and vice versa. The results give some indications of a negative effect of the program on the outmigration of welfare prone individuals. This is however not robust to changes in comparison group nor in the sample of town districts. The conclusion that can be drawn is that there are no indications that activation programs lead to outmigration of welfare prone individuals.
    Keywords: Welfare migration; welfare-to-work; difference-in-difference-in-differences
    JEL: H53 H70 I38 R23
    Date: 2007–11–12
  8. By: Jose De Sousa; Sandra Poncet
    Abstract: Over the last fifteen years, China’s export performance has been phenomenal but some observers assert that this situation is temporary due to rising labor costs. However, large migration across provinces may increase competition on the labor market of export-intensive provinces and allow firms to keep low wages for many years. This paper attempts to shed some light on this debate over wage dynamics in China. We investigate the respective importance of the upward push of world demand and the downward pressure of migration. This investigation is conducted on a sample of 29 Chinese provinces between 1997 and 2004. We find, holding other factors fixed, that provincial wages increase by about 17 percent per year, due to common trends possibly like total factor productivity growth and national increase in prices. Our results show that besides this general trend, market access and internal migration have statistically and economically significant effects on the provincial wage level but of much less importance. We estimate that on average over the 7 year period of our sample, more intense internal migration has slowed down wage growth by 2 percent per year. The wage increasing impact of market access is three times smaller in magnitude.
    Keywords: Wage; China; immigration; economic geography
    JEL: F12 F15 R11 R12
    Date: 2007–07
  9. By: Erqian Zhu (Department of Resource Economics, University of Nevada, Reno); Shunfeng Song (Department of Economics, University of Nevada, Reno)
    Abstract: Since the late 1970s, many state-owned enterprise employees have been laid off and more and more rural people have migrated to urban areas. In this massive laying-off and migration process, many laid-off workers and migrants have become urban poor. Using data collected from a survey on 1641 relatively low-income households in Changsha in January 2007, this paper compares migrant workers with their city counterpart regarding income, employment, education, and social support. Based on qualitative and regression analysis, we found that worker’s age, Hukou status, education, enterprise ownership, and contract length are significantly affecting the annual income. There exists a big gap in the coverage of social security between urban and migrant workers. This paper provides some policy recommendations.
    Keywords: Urban poor; Hukou; Laid-off workers; Migrant workers; Income determinants; Social insurance
    JEL: R23 I30
    Date: 2007–11
  10. By: Jana Bruder (University of Rostock); Doris Neuberger (University of Rostock); Solvig Raethke-Döppner (University of Rostock)
    Abstract: This is the first attempt to test hypotheses about financial constraints of ethnic minority owned businesses in Germany. Using data from a survey among 3,000 ethnic and native entrepreneurs, we examine differences in the financing patterns between both demographic groups. We find that entrepreneurs with a migration background are more likely to be denied credit or to obtain smaller loan amounts than requested. After controlling for observed risk factors and financial relationships as explanatory variables, ethnicity plays no role in explaining differences in the probability of credit rationing. These can be rather explained by the firm's location and characteristics of the bank-customer relationship. Thus, we find no evidence for prejudicial discrimination in the loan market.
    JEL: G21 G32
    Date: 2007
  11. By: Bursell, Moa (Stockholm University Linnaeus Center for Integration Studies - SULCIS)
    Abstract: This paper provides evidence of extensive ethnic discrimination in the Swedish labour market. A field experiment (correspondence test) that tests employer discrimination has been performed. Pairs of equally merited applications has been sent to job openings, one with a Swedish sounding name and one with a foreign sounding name. Discrimination is measured by documenting the existence of an ethnic difference in call-backs. The results indicate that there is discrimination in all of the occupations that were tested in the experiment, but that the extent of the ethnic discrimination differs between the occupations. An attempt is also made to explain the results applying the theories of statistical discrimination and social distance.
    Keywords: ethnic discrimination in the labour market; statistical discrimination; social distance; field experiment; correspondence test
    JEL: J15 J71
    Date: 2007–11–27
  12. By: Ricardo Mora; Javier Ruiz-Castillo
    Abstract: This paper explores the statistical properties of an index of multigroup segregation based on the entropy concept, the Mutual Information (M ) index. In the context of school segregation by ethnic group, the paper establishes that (i) the M index is a monotonic transformation of the likelihood-ratio test for the independence of school and ethnic status, while (ii) the within-group term of the M index for any partition of the set of schools (or ethnic groups) is a monotonic transformation of the likelihood-ratio test for the independence of schools and ethnic groups within the partition in question. This last result is applied to study whether the level of segregation differs significantly within any number of cities, countries or time periods. It is also shown how statistical tests for pair wise comparisons of segregation levels between schools, school districts, ethnic groups, supergroups, cities, countries or time periods can be performed.
    Date: 2007–11
  13. By: Schueler, Dana
    Abstract: This study sheds light on the efficiency of informal mutual insurance systems. Evidence on the behavioral effects of remittances and inter-family transfers is still rare. This paper intends to analyze the incentive effects of internal interfamily transfers in Indonesia with improved econometric techniques. First differences and three-stage least squares are used to analyze incentive effects on working hours. The endogeneity of transfers received by the household and the number of migrants sent away are explicitly taken into account. Furthermore, different sectors of employment are distinguished in the analysis. The empirical analysis shows that inter-family transfers adversely influence the incentive to work. This finding holds for the informal non-agricultural sector. However, the negative incentive effect is partly compensated by migrants, who are recipients rather than providers of transfers in the short run.
    Keywords: Remittances, Transfers, Incentives, Three-Stage Least Squares
    Date: 2007
  14. By: Sayan, Serdar; Tekin-Koru, Ayca
    Abstract: ...
    JEL: E32 F24 I32
    Date: 2007
  15. 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

This nep-mig issue is ©2007 by Yuji Tamura. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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