nep-mig 2008-04-04 papers

on Economics of Human Migration

Issue of 2008‒04‒04
two papers chosen by
Yuji Tamura
Australian National University

Does Employment Protection Help Immigrants? Evidence from European Labor Markets By Sa, Filipa
The Causal Relationship between Individual’s Choice Behavior and Self-Reported Satisfaction: the Case of Residential Mobility in the EU By Luis Diaz-Serrano; Alexandrina P. Stoyanova

Does Employment Protection Help Immigrants? Evidence from European Labor Markets

By:	Sa, Filipa (Bank of England)
Abstract:	High levels of employment protection reduce hiring and firing and have a theoretically ambiguous effect on the employment level. Immigrants, being new to the labor market, may be less aware of employment protection regulations and less likely to claim their rights, which may create a gap between the costs for employers of hiring a native relative to hiring an immigrant. This paper tests that hypothesis drawing on evidence for the EU and on two natural experiments for Spain and Italy. The results suggest that strict employment protection legislation (EPL) gives immigrants a comparative advantage relative to natives. Stricter EPL is found to reduce employment and reduce hiring and firing rates for natives. By contrast, stricter EPL has no effect on most immigrants and may even increase employment rates for those who have been in the country for a longer time.
Keywords:	employment protection, immigration
JEL:	J6
Date:	2008–03
URL:	http://d.repec.org/n?u=RePEc:iza:izadps:dp3414&r=mig

The Causal Relationship between Individual’s Choice Behavior and Self-Reported Satisfaction: the Case of Residential Mobility in the EU

By:	Luis Diaz-Serrano (IZA, CREB, GRIT. Department of Economics. Universitat Rovira i Virgili. Av. de la Universitat, 1. 43204 Reus (SPAIN).); Alexandrina P. Stoyanova (CREB, Department of Economic Theory. Universitat de Barcelona. Av. Diagonal, 690. 08028 Barcelona (SPAIN).)
Abstract:	One of the most persistent and lasting debates in economic research refers to whether the answers to subjective questions can be used to explain individuals’ economic behavior. Using panel data for twelve EU countries, in the present study we analyze the causal relationship between self-reported housing satisfaction and residential mobility. Our results indicate that: i) households unsatisfied with their current housing situation are more likely to move; ii) housing satisfaction raises after a move, and; iii) housing satisfaction increases with the transition from being a renter to becoming a homeowner. Some interesting cross-country differences are observed. Our findings provide evidence in favor of use of subjective indicators of satisfaction with certain life domains in the analysis of individuals’ economic conduct.
Keywords:	Housing satisfaction, residential mobility, homeownership, individual’s choice behavior.
JEL:	D1 R0 J0
Date:	2008–03
URL:	http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2008-02&r=mig

This nep-mig issue is ©2008 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.

General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.

NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.