nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2008‒05‒10
seven papers chosen by
Yuji Tamura
Australian National University

  1. Searching for the Best Neighborhood: Mobility and Social Interactions By Yannis M. Ioannides; Giulio Zanella
  2. Education policy and tax competition with imperfect student and labor mobility By Tim Krieger; Thomas Lange
  3. The Immigrant Earnings Disadvantage across the Earnings and Skills Distributions: The Case of Immigrants from the EU’s New Member States in Ireland By Barrett, Alan; McGuinness, Seamus; O'Brien, Martin
  4. Internal migration and growth in Italy By Etzo, Ivan
  5. Intergenerational Time Transfers and Internal Migration: Accounting for Low Spatial Mobility in Southern Europe By Mendez, Ildefonso
  6. Using the Gravity Equation to Explain the Portuguese Immigration-trade Link By Horácio Faustino; Nuno Leitão
  7. Bounds analysis of competing risks : a nonparametric evaluation of the effect of unemployment benefits on migration in Germany By Arntz, Melanie; Lo, Simon M. S.; Wilke, Ralf A.

  1. By: Yannis M. Ioannides; Giulio Zanella
    Abstract: The paper seeks to contribute to the social interactions literature by exploiting data on individuals’ self-selection into neighborhoods. We study a model in which households search for the best location in the presence of neighborhood effects in the formation of children’s human capital and in the process of cultural transmission. We use micro data from the PSID which we have merged, using geocodes, with contextual information at the levels of census tracts and of counties from the 2000 US Census. We control for numerous individual characteristics and neighborhood attributes and find, consistently with neighbourhood effects models, that households with children, but not those without, are more likely to move out of neighborhoods whose attributes are not favorable to the production of human capital and the transmission of parents’ cultural traits, and to move into neighborhoods which instead exhibit desirable such attributes.
    JEL: R23 Z13
    Date: 2008–05
  2. By: Tim Krieger (University of Paderborn); Thomas Lange (Ifo institute for economic research & University of Konstanz)
    Abstract: In this paper we analyze the effect of increasing labor (i.e. graduates’/ academics’) and student mobility on net tax revenues when revenuemaximizing governments compete for human capital by means of income tax rates and amenities offered to students (positive expenditure) or rather tuition fees (negative expenditure). We demonstrate that these instruments are strategic complements and that increasing labor mobility due to ongoing globalization not necessarily implies intensified tax competition and an erosion of revenues. On the contrary, the equilibrium tax rate even increases in mobility. Amenities offered to students (or rather tuition fees) may either increase or decrease, and, overall, net revenues increase. An increase in student mobility, however, erodes revenues due to intensified tax and amenity competition.
    Keywords: labor mobility, student mobility, higher education, tax competition, public expenditure competition
    JEL: I22 J61 F22 H2 H87
    Date: 2008–01
  3. By: Barrett, Alan (ESRI, Dublin); McGuinness, Seamus (Economic and Social Research Institute, Dublin); O'Brien, Martin (ESRI, Dublin)
    Abstract: As the movement of population from the New Member States (NMS) of the EU to the older members is a relatively new flow, it is important to build up our knowledge of who is moving within Europe and how they are performing in their destinations. In this paper, we analyse the earnings of immigrants in Ireland from the NMS using a new large-scale dataset on employees in Ireland. In so doing, we add to the emerging strand in the literature on immigrant earnings that looks beyond average earnings differentials and considers variations in such differentials across the earnings and skills distributions. We do this partly by using quantile regressions and also by analyzing earnings differentials within educational categories. We find that the average earnings difference between immigrants from the NMS and natives is between 10 percent and 18 percent, depending on the controls used. However, the difference is found to be either non-existent or low for people with low skill levels and for people at the lower end of the earnings distribution. The difference is higher for those at the upper ends of the skills and earnings distributions. This suggests that the transferability of human capital is a crucial determinant of the immigrant-native earnings gap for NMS immigrants in Ireland.
    Keywords: new member states, Ireland, immigrant earnings, quantile regression
    JEL: J31 J61
    Date: 2008–04
  4. By: Etzo, Ivan
    Abstract: The analysis focuses on the impact of interregional migration flows on regional growth rates during the period 1983-2002. A first important result is that migration did affect regional growth rates in Italy. Moreover, the results from the analysis of the two sub-periods, 1983-1992 and 1993-2002, show that the different trends of migration flows during the two decades and their differences in human capital content did affect regional growth in different ways. Both net migration rate and gross migration rates are used as regressors in different estimations. Furthermore, in order to investigate how the human capital content of migrants affected the regional growth, a further specification of the empirical model differentiates the migration rates according with their educational attainment. The outcomes show that migrants with a high educational attainment have the strongest impact on regional growth.
    Keywords: internal migration and growth; convergence; human capital; panel data.
    JEL: E0 O18
    Date: 2008–05
  5. By: Mendez, Ildefonso
    Abstract: This paper examines the hypothesis that living close to grandparents is optimal for Southern European young couples with children in which the wife works given the combination of, on the one hand, substantial help ows in the form of grandparenting and, on the other hand, the shortage in the provision of formal childcare services in these countries. I develop a partial equilibrium job search model that incorporates these …ndings. Simulation results show that a reduction in the price of private childcare services is more e¤ective in increasing womens employment, fertility and inter-regional migration rates than an increase in the availability of publicly funded childcare slots. Using ECHP data I …nd that families with children in which the wife works move signi…cantly less than equivalent childless couples only if they live in a Southern European country. That e¤ect is found for both inter- and intra-regional migrations but is substantially larger in the former case.
    Keywords: Geographic labour mobility; Intergenerational transfers; Child care; Grandparenting; Labour Supply.
    JEL: J13 J22 J61
    Date: 2008–02
  6. By: Horácio Faustino; Nuno Leitão
    Abstract: This paper tests the relation between immigration and Portuguese bilateral trade. Using a panel data analysis, the results show that the stock of immigrants has a positive effect on Portuguese exports, imports and bilateral intraindustry trade. The underlying assumption is that immigration contributes to decrease the costs of transactions, which in turn promotes trade flows. The results do not confirm the hypothesis of a negative effect of immigration on Portuguese exports. Our findings suggest that when immigrants to Portugal come from a Latin partner-country, the effects on trade are stronger than in the case of immigrants from non-Latin countries. The study is based on an extended gravitational model, in order to incorporate the qualitative factors as control variables.
    Keywords: intra-industry trade; immigration; gravity model; panel data.
    JEL: C33 F11 F12 F22
    Date: 2008–03
  7. By: Arntz, Melanie; Lo, Simon M. S.; Wilke, Ralf A.
    Abstract: "In this paper we derive nonparametric bounds for the cumulative incidence curve within a competing risks model with partly identified interval data. As an advantage over earlier attempts our approach also gives valid results in case of dependent competing risks. We apply our framework to empirically evaluate the effect of unemployment benefits on observed migration of unemployed workers in Germany. Our findings weakly indicate that reducing the entitlement length for unemployment benefits increases migration among high-skilled individuals." (author's abstract, IAB-Doku) ((en))
    Keywords: Arbeitslosenunterstützung, Leistungsanspruch - Dauer, Binnenwanderung, regionale Mobilität, Wanderungsmotivation, Mobilitätsbereitschaft, Arbeitslose, Hochqualifizierte, IAB-Beschäftigtenstichprobe
    JEL: C41 C14 J61
    Date: 2007–08–13

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