nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2008‒08‒14
nine papers chosen by
Yuji Tamura
Australian National University

  1. Studying Abroad and the Effect on International Labor Market Mobility: Evidence from the Introduction of Erasmus By Matthias Parey; Fabian Waldinger
  2. ‘Living’ Wage, Class Conflict and Ethnic Strife By Dasgupta, Indraneel
  3. Migration to Competing Destinations and Off-Farm Employment in Rural Vietnam: A Conditional Logit Analysis By Tu Thuy Anh; Dao Nguyen Thang; Hoang Xuan Trung
  4. Gender and Remittances in Vietnam By Pfau, Wade Donald; Giang, Thanh Long
  5. Informal Institutions and Intergenerational Contracts: Evidence from Schooling and Remittances in Rural Tanzania By David Dreyer Lassen; Gabriel Helene Bie Lilleør
  6. Remittance Behaviours Among Recent Immigrants in Canada By Houle, René; Schellenberg, Grant
  7. Home Relocation and the Journey to Work By Nebiyou Tilahun; David Levinson
  8. Demographic effects on the German labour supply : a decomposition analysis By Fuchs, Johann; Söhnlein, Doris; Weber, Brigitte
  9. Les habitudes de transfert de fonds chez les nouveaux immigrants au Canada By Houle, René; Schellenberg, Grant

  1. By: Matthias Parey; Fabian Waldinger
    Abstract: We investigate the e¤ect of studying abroad on international labor market mobility later in life for German university graduates. As a source of identifying variation, we exploit the introduction and expansion of the ERASMUS student exchange program, which significantly increases a student's probability of studying abroad. Using an Instrument Variable approach we control for unobserved heterogeneity between individuals who studied abroad and those who did not. Our results indicate that student exchange mobility is an important determinant of later international labor market mobility: We find that studying abroad increases an individual's probability of working in a foreign country by about 15 to 20 percentage points, suggesting that study abroad spells are an mportant channel to later outmigration. The results are robust to a number of specification checks.
    Date: 2007–08
  2. By: Dasgupta, Indraneel (University of Nottingham)
    Abstract: We examine how group-specific differences in reservation wage, arising due to asymmetries in social entitlements, impact on distribution via the joint determination of class conflict between workers and employers, and ‘ethnic’ conflict among workers. We model a two-dimensional contest, where two unions, representing different sections of workers, jointly but non-cooperatively invest resources against employers in enforcing an exogenously given rent, while also contesting one another. The rent arises from a ‘living’ wage, set above reservation wage rates via labour regulations. We show that high reservation wage workers gain, and employers lose, from better social entitlements for low reservation wage workers. The latter however benefit, with employers and against the former, from weak labour regulations. When minority/immigrant workers are marginalized both in the labour market and in non-wage entitlements, improving job access and expanding ‘social support’ has contradictory effects on class and ethnic conflicts. ‘Trade unionism’, i.e. political articulation of shared economic interests alone, appears insufficient to temper ethnic conflicts among workers.
    Keywords: class conflict, ethnic conflict, living wage, labour regulation, social entitlement, affirmative action, Distribution
    JEL: D31 D72 D74 I38 J52 O17
    Date: 2008–08
  3. By: Tu Thuy Anh (Foreign Trade University, Hanoi, Vietnam); Dao Nguyen Thang (National Economics University, Hanoi, Vietnam); Hoang Xuan Trung (National Economics University, Hanoi, Vietnam)
    Abstract: <p>In this paper, we explore employment decision of Vietnamese farmers as having five choices: staying on the farm exclusively, staying in the village but partially engaging in local off-farm activities, and working outside the home region for a certain period, in which destination options are Hanoi, Ho Chi Minh City and Other which combines the remaining places. This choice model departs from the existing literature in several aspects. Firstly, previous papers focused mainly on the population that takes off-farm jobs or migrate, that are dichotomous employment choice. More importantly, most existing papers using the random utility model ignore factors in the destination areas. They assume implicitly that either migrants choose their destination randomly or that all migrants face exactly the same migration choices. In our paper, we allow multi-destination possibility, and examine impacts of distance, wages and social network on migrants' decisions. The indirect utility of a given migration option is modeled as a function of choice attributes and individual specifics. Choice attributes for each migration option include wage in destination area, transport between origin and destination area which is proxied by the corresponding distances, and social network of the migrants, while those for farm and non-farm option mainly include agricultural prices and local job creation opportunities. Individual specific include age, education, gender, marital status, share of children and elderly in the household.</p><p> The data used in this research are the Vietnam Living Standard Survey (1998) which is until now the only available data set that provides information on the migrant destinations. We start by estimating determinants of wage in destination areas using full information maximum likelihood to overcome selection bias. Then, we predict wages of those who do not currently work for wage. Finally, we run a conditional logit estimation with predicted wage being one of the explanatory variables to examine probability of migration to each location choice and of taking off-farm employment. Our results show that wage and network have significantly positive effects on all migration choices, while distance negatively affects them. Impact magnitude however differs across destination locations.</p>
    Keywords: Migration, choice attributes, off-farm employment, random utility model, conditional logit
    Date: 2008
  4. By: Pfau, Wade Donald; Giang, Thanh Long
    Abstract: Since the 1990s, Vietnam has experienced a dramatic growth in remittance flows. This paper uses the Vietnam Living Standard Surveys for 1992/93 and 1997/98 to study the role of gender in these remittance flows, both from the perspective of receiving and sending remittances. Knowing about gender differences will help to better explain the impact of remittances and to understand the nature of gender roles during a time of economic transformation. We find important distinctions, such as a responsibility among women for the intergenerational transfers of remittances (particularly between parents and children) while men tend to take more responsibility for intragenerational remittances. As well, after controlling for other factors and sharing remittances between spouses who live together, we find evidence that women have a higher likelihood to both send and receive remittances.
    JEL: F24
    Date: 2008–08
  5. By: David Dreyer Lassen (Department of Economics, University of Copenhagen); Gabriel Helene Bie Lilleør (Department of Economics, University of Copenhagen)
    Abstract: This paper carries out a theoretical and empirical investigation of the role of informal institutions in facilitating intergenerational contracts governing investments in schooling and payments of pensions in the form of remittances. We show, using detailed household level data from rural Tanzania, that informal institutions of social control, rooted in tribal affiliations, determine both the household's investment in schooling and the probability that it receives remittances from migrants. This is consistent with a framework in which households' expected returns in the form of remittances, which is determined partly by the prospects of social control over migrants, influence current investments in schooling.
    Keywords: intergenerational contract; social compact; schooling; human capital; traditions; ethnicity; ethnic diversity; social capital; Tanzania; Africa
    JEL: D13 O15
    Date: 2008–08
  6. By: Houle, René; Schellenberg, Grant
    Abstract: Remittances "the money immigrants send to family members in their country of origin" are now centre stage in development and immigrant research. Yet, in spite of this interest, research on the characteristics of remittance senders in Canada remains quite limited, in large part because of the absence of household survey data. More broadly, studies of remittance senders in Canada and elsewhere often focus on immigrants from only one or two source countries and, consequently, do not provide a broad cross-national perspective on the issue. This study addresses these gaps by using the Longitudinal Survey of Immigrants to Canada to document the incidence of remitting and the amounts remitted by immigrants from a wide range of countries. Using a common set of concepts and methods, we find that the incidence of remitting by the 2000 to 2001 landing cohort ranges from less than 10% to 60% across immigrants from different countries, while the average annual amounts remitted range from about $500 to almost $3,000. Turning to the factors associated with remitting, the financial and family characteristics are consistently significant among immigrants from all world regions. In contrast, other factors, such as gender and education, are associated with remitting among immigrants from some regions but not from others.
    Keywords: Income, pensions, spending and wealth, Ethnic diversity and immigration, Household, family and personal income, Immigrants and non-permanent residents
    Date: 2008–07–23
  7. By: Nebiyou Tilahun; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Relocation decisions are complex. Each household has a bundle of attributes that make a location attractive to it, including the ability to access different activity locations easily, neighborhood quality, house amenities etc. Relocating households have an opportunity to Þnd housing closer to their work. Using data collected in the Twin Cities area, we investigate how distance to home and travel time to home change among individuals who have changed their residence since they started their current job. Comparing the home-to-work distance after the move to the previous-home-to-work distance, we Þnd that the average home to work distance is reduced as a result of the move. We also Þnd that the reduction depend on the previous home to work distance as well as the previous homesÕ proximity to downtown Minneapolis. The Þndings show that households that are either very close to their work, or very close to down- town, or both did not signiÞcantly increase or decrease their commute after relocation. This suggests that access to work as well as access to the opportunities that proximity to downtown offers (to jobs, urban spaces, etc.) are important in the decision making process.
    Keywords: Journey to Work, Commuting, Relocation, Tenure, Jobs, Minnesota, Minneapolis
    JEL: R41 R48 D63
    Date: 2008
  8. By: Fuchs, Johann (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Söhnlein, Doris (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Weber, Brigitte (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Forecasts show a substantially decreasing and ageing labour force in Germany. This paper provides a decomposition of the projected change in the overall labour force into three parts. The first, called the 'demographic component', shows the effects of fertility, mortality and a changing age structure of the population. The second effect is the migration component. This part is due to the cumulative net inflow of migrants, but includes their reproductive behaviour as well. Changes in the participation rates give the third effect, the participation component. The decomposition was conducted by comparing different labour force scenarios until 2050. The method can easily be extended for decomposition into more than three factors. Not surprisingly, the downward trend in the labour force is attributable only to population effects. Ageing of the baby-boom generation and low birth rates both are the responsible factors behind. Neither a strong increase in labour force participation nor large immigration flows can halt this trend in the labour force. As the age structure is almost given and increasing fertility rates only have positive effects in the very long run, the projected decline in the labour force should be taken as a fact." (author's abstract, IAB-Doku) ((en))
    Keywords: Arbeitskräfteangebot - Prognose, Erwerbspersonenpotenzial - Determinanten, demografischer Wandel, Wanderung - Auswirkungen, Erwerbsverhalten, Geschlechterverteilung
    JEL: J11 J21 F22
    Date: 2008–08–06
  9. By: Houle, René; Schellenberg, Grant
    Abstract: Les transferts de fonds " l'argent que les immigrants envoient aux membres de leur famille dans leur pays d'origine " sont maintenant au coeur des recherches sur le développement et les immigrants. Toutefois, malgré cet intérêt, les recherches sur les caractéristiques des résidents du Canada qui transfèrent des fonds à l'étranger demeurent très limitées, surtout en raison de l'absence de données d'enquêtes-ménages. À plus grande échelle, les études sur les résidents du Canada et d'autres pays qui transfèrent des fonds à l'étranger s'intéressent souvent aux immigrants d'un ou deux pays d'origine seulement et n'offrent donc pas une perspective internationale large sur la question. La présente étude comble ces lacunes en utilisant l'Enquête longitudinale auprès des immigrants du Canada pour documenter l'incidence des transferts et les montants envoyés par les immigrants de divers pays. Au moyen d'un ensemble uniformisé de concepts et de méthodes, nous constatons que l'incidence des transferts dans la cohorte d'immigrants arrivés en 2000 à 2001 varie de moins de 10 % à 60 % parmi les immigrants de différents pays, tandis que les montants annuels moyens envoyés varient d'environ 500 $ à près de 3 000 $. Lorsque l'on examine les facteurs associés aux transferts de fonds, les caractéristiques financières et familiales sont toujours importantes chez les immigrants de toutes les régions du monde. En revanche, d'autres facteurs, comme le sexe et le niveau de scolarité, sont associés aux transferts de fonds chez les immigrants de certaines régions seulement.
    Keywords: Revenu, pensions, dépenses et richesse, Diversité ethnique et immigration, Revenu du ménage, revenu familial et personnel, Immigrants et résidents non permanents au Canada
    Date: 2008–07–23

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.
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