nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2009‒05‒23
seventeen papers chosen by
Yuji Tamura
Australian National University

  1. Policies on illegal immigration in a federation By Karin Mayr; Steffen Minter; Tim Krieger
  2. Employer monopsony power in the labor market for undocumented workers By Julie L. Hotchkiss; Myriam Quispe-Agnoli
  3. Family Ties and Political Participation By Alesina, Alberto; Giuliano, Paola
  4. Alcohol Use and Social Interactions among Adolescents Do peer-effects exist within and/or between the majority population and immigrants? By Svensson, Mikael
  6. Children's First Names and Immigration Background in France By Arai, Mahmood; Besancenot, Damien; Huynh, Kim; Skalli, Ali
  7. Impact of the Rise in immigrant unemployment on public finances By Pablo Vazquez Vega; Mario Alloza; Raquel Vegas; Stefano Bertozzi
  8. Global Aging and Fiscal Policy with International Labor Mobility: A Political Economy Perspective By Tosun, Mehmet S.
  9. Population Aging, Elderly Migration and Education Spending: Intergenerational Conflict Revisited By Tosun, Mehmet S.; Williamson, Claudia R.; Yakovlev, Pavel
  10. The Immigrants Odds of Slipping into Poverty during Business Cycles: Double Jeopardy? By Kim, Jongsung; Tebaldi, Edinaldo
  11. Preliminary evidence on internal migration, remittances, and teen schooling in India: By Mueller, Valerie; Shariff, Abusaleh
  12. Immigrant Wages in the Spanish Labour Market: Does the Origin of Human Capital Matter? By Sanromá, Esteve; Ramos, Raul; Simón, Hipólito
  14. Remittances, financing constraints and growth volatility : Do remittances dampen or magnify shocks ? By Dramane Coulibaly
  15. Remittances: An Automatic Output Stabilizer? By Ralph Chami; Dalia Hakura; Peter Montiel
  16. Grants, Remittances, and the Equilibrium Real Exchange Rate in Sub-Saharan African Countries By Brett Rayner; Joannes Mongardini
  17. Macroeconomic determinants of migrants' remittances : New evidence from a panel VAR. By Dramane Coulibaly

  1. By: Karin Mayr (University of Vienna); Steffen Minter (University of Paderborn); Tim Krieger (University of Paderborn)
    Abstract: Illegal immigration is a major policy challenge in Europe, in particular in countries on the external border of the EU such as Italy or Spain. However, there are likely to be important effects on the rest of the EU, too, depending on the policies against illegal immigration in border countries. This paper determines optimal enforcement and amnesty policies on illegal immigration in a federation with border and non-border countries. We show that in the Nash equilibrium with positive enforcement spending in both countries, total enforcement spending is too low to maximize joint welfare. In this case, we find that a side payment can be necessary to achieve the cooperative optimum, depending on the relative size of populations in the two countries.
    Keywords: illegal immigration, enforcement, amnesty, EU cooperation
    JEL: F22 J61 J68
    Date: 2009–04
  2. By: Julie L. Hotchkiss; Myriam Quispe-Agnoli
    Abstract: Using matched employer-employee data from the state of Georgia, this paper investigates the potential for employer monopsony power in the labor market for undocumented workers. We find that the labor supply elasticity of undocumented workers is about 13 percent lower than that estimated for documented workers, suggesting that at least some of the observed wage gap between documented and undocumented workers can be explained by firms' exploiting their monopsony power. There is also evidence of some displacement, with the hiring of undocumented workers being associated with a small amount of documented worker separation.
    Keywords: Labor market
    Date: 2009
  3. By: Alesina, Alberto (Harvard University); Giuliano, Paola (University of California, Los Angeles)
    Abstract: We establish an inverse relationship between family ties, generalized trust and political participation. The more individuals rely on the family as a provider of services, insurance, transfer of resources, the lower is civic engagement and political participation. The latter, together with trust, are part of what is known as social capital, therefore in this paper we contribute to the investigation of the origin and evolution of social capital over time. We establish these results using within country evidence and looking at the behavior of immigrants from various countries in 32 different destination places.
    Keywords: family ties, trust, culture
    JEL: Z10 Z13
    Date: 2009–04
  4. By: Svensson, Mikael (Department of Business, Economics, Statistics and Informatics)
    Abstract: Are adolescents who attend schools with a high level of alcohol use more likely to use alcohol themselves? This paper analyzes peer-effects in adolescent alcohol use based on a survey of 13,337 adolescents in Sweden in 2005. The empirical analysis uses multi-level logistic model to handle non-observable heterogeneity between the schools and the results show that attending a school with a high level of alcohol use is a strong predictor of alcohol use for the individual. However, a positive association is only seen within Swedes and within non-Swedes (1st and 2nd generation immigrants). Between Swedes and non-Swedes there is actually a negative association, i.e. if many Swedes drink in a certain school, alcohol use among non-Swedes is lower (and vice-versa). An exception to these results are schools with a very low share of non-Swedish adolescents, where non-Swedes alcohol use also is positively associated with Swedish peers’ alcohol use.
    Keywords: Alcohol use; Adolescents; Peer-effects; Immigrants; Sweden
    JEL: D10 I12
    Date: 2009–05–13
  5. By: Svensson, Mikael (Department of Business, Economics, Statistics and Informatics); Hagquist, Curt (Karlstad University)
    Abstract: In this paper adolescent alcohol- and illicit drug-use among 1st and 2nd generation immigrants from Nordic, non-Nordic European and non-European countries were compared with the Swedish majority population. Multilevel logistic regression analysis was performed based on survey data from three different Swedish regions including 24 municipalities sampled in 2005 including 13,070 adolescents. Immigrants from Nordic countries were more likely to use alcohol (OR: 1.10-1.37) while immigrants from non- European countries were less likely to use alcohol (OR: 0.52-0.81), mainly explained by the relatively low use by girls from non-European countries. All immigrant groups were more likely to use illicit-drugs compared to the majority population. Highest drug-use were found among first generation Nordic Immigrants (OR: 3.15-4.17) and non-European immigrants (OR: 2.92-3.13). Consumption patterns among second generation immigrants were more similar to the Swedish majority population, implying more alcohol-use and less illicit drug-use.
    Keywords: alcohol; drug use; ethnicity; immigrants; adolescents
    JEL: I12 I18 J15
    Date: 2009–05–13
  6. By: Arai, Mahmood (Dept. of Economics, Stockholm University); Besancenot, Damien (University of Paris 13); Huynh, Kim (University of Paris 2); Skalli, Ali (University of Paris 2)
    Abstract: We present evidence indicating that immigrants and especially those from the Maghreb/Middle-East give first names to their children that are different from those given by the French majority population. When it comes to natives with an immigrant background, these differences are very little pronounced. Being born and raised up in France as well as being exposed to the French society and culture through residence, citizenship and the educational system draws individuals with or without immigrant background into similar ways of expressing belongings when choosing first names for their children, indicating the very strong assimilating forces in the French society.
    Keywords: First names; Immigration
    JEL: J13 J15
    Date: 2009–05–13
  7. By: Pablo Vazquez Vega; Mario Alloza; Raquel Vegas; Stefano Bertozzi
    Abstract: The current slump is having a heterogeneous impact on the EU economies regarding their GDP and employment growth responses. The impact of immigrants’ unemployment on public finances of EU countries depends on three factors: (i) the sensitiveness of the economy to the business cycle, (ii) the share that migrants represent over total labour force population and (iii) the benefits structure of their unemployment benefits programs. Our results confirm that the impact of the rise in immigrants’ unemployment on the unemployment benefit burden during the next few years is likely to be sizeable. Unemployment benefit burden is expected to peak in 2009 after an increase in 2008, and to slow down slightly in 2010. We find that Latvia, Estonia and France are the ones more likely to suffer a higher public finance burden from the rise in immigrants´ unemployment. Other economies such as Germany, Finland, Spain, Ireland, Italy or Austria would also register a noticeable increase in their public burden although to a lesser extent.
    Date: 2009–03
  8. By: Tosun, Mehmet S. (University of Nevada, Reno)
    Abstract: This paper uses an overlapping generations model with international labor mobility and a politically responsive fiscal policy to examine aging in developed and developing regions. Migrant workers change the political structure composed of young and elderly voters in both labor-receiving and labor-sending countries. Numerical simulations show that the developed region benefits more from international labor mobility through the contribution of migrant workers as laborers, savers, and voters. The developing region experiences significant growth in all specifications but benefit more under international capital mobility. Restricting political participation of migrant workers in the developed region produces inferior growth results.
    Keywords: population aging, overlapping generations, endogenous fiscal policy, international labor mobility, international capital mobility
    JEL: E62 F21 F22 F43 H30 J10
    Date: 2009–05
  9. By: Tosun, Mehmet S. (University of Nevada, Reno); Williamson, Claudia R. (Appalachian State University); Yakovlev, Pavel (Duquesne University)
    Abstract: Elderly have been increasingly targeted as a group to enhance economic development and the tax base in communities. While recent literature on elderly migration tends to focus on how elderly migration patterns are influenced by state fiscal variables, the reverse effect from elderly population on fiscal variables is very plausible. This paper reexamines the intergenerational conflict in education financing using U.S. state and county level data. We analyze how preferences for education spending might vary across different elderly age groups, an analysis that has not been explored before. We estimate the impact of elderly population and elderly migration rates on education spending using panel data and spatial econometric techniques. Our results broadly support the presence of intergenerational conflict and age heterogeneity in preferences for education spending among elderly migrants.
    Keywords: population aging, elderly migration, education spending, intergenerational conflict
    JEL: H75 R23
    Date: 2009–05
  10. By: Kim, Jongsung; Tebaldi, Edinaldo
    Abstract: This paper makes an empirical contribution in unraveling the argument that immigration is either the sole or even the most important factor behind the U.S. poverty. While this argument is understandable, the blame is misplaced. Using data from the Current Population Survey, we show that between 1994 and 2008 the national poverty rate of immigrants fell three times faster than that of natives (5.4 compared to 1.8 percentage points). The poverty rate of recent immigrants (those in the United States for less than 10 years) fell even faster at almost six times faster than that of natives (10.7 compared to 1.8 percentage points). The empirical analysis of this paper shows that the odds of experiencing poverty for both natives and immigrants depend on micro factors such as individual characteristics and macro factors such as business cycle in the U.S. economy.
    Keywords: Poverty, Immigrants, and Business Cycle
    JEL: I30 J61
    Date: 2009–05
  11. By: Mueller, Valerie; Shariff, Abusaleh
    Abstract: "Migration can serve as an outlet for employment, higher earnings, and reduced income risk for households in developing countries. We use the 2004–2005 Human Development Profile of India survey to examine correlations between the receipt of remittances from internal migrants and human capital investment in rural areas. We employ a propensity score–matching approach to account for the selectivity of households into receiving remittances. We interpret the results conservatively due to the cross-sectional nature of the data. We find a positive correlation between remittances received from internal migrants and the schooling attendance of teens. The magnitude of the correlation is greater when focusing on low-caste households, and male schooling attendance in particular becomes more positive and statistically significant. Our findings provide a basis for establishing future research in the areas of migration and social protection in India." from authors' abstract
    Keywords: Migration, Transfers, Human capital, Labor supply, Urban-rural linkages, Nonfarm rural development, Development strategies,
    Date: 2009
  12. By: Sanromá, Esteve (University of Barcelona); Ramos, Raul (University of Barcelona); Simón, Hipólito (University of Alicante)
    Abstract: The aim of this paper is to analyse the role played by the different components of human capital in the wage determination of recent immigrants within the Spanish labour market. Using microdata from the Encuesta Nacional de Inmigrantes 2007, the paper examines returns to human capital of immigrants, distinguishing between human capital accumulated in their home countries and in Spain. It also examines the impact on wages of the legal status. The evidence shows that returns to host country sources of human capital are higher than returns to foreign human capital, reflecting the limited international transferability of the latter. The only exception occurs in the case of immigrants from developed countries and immigrants who have studied in Spain. Whatever their home country, they obtain relatively high wage returns to education, including the part not acquired in the host country. Having legal status in Spain is associated with a substantial wage premium of around 15%. Lastly, the overall evidence confirms the presence of a strong heterogeneity in wage returns to different kinds of human capital and in the wage premium associated to the legal status as a function of the immigrants' area of origin.
    Keywords: immigration, wages, human capital
    JEL: J15 J24 J31 J61
    Date: 2009–04
  13. By: Anthony Briant (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales - Ecole Nationale des Ponts et Chaussées - Ecole Normale Supérieure de Paris); Pierre-Philippe Combes (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579); Miren Lafourcade (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales - Ecole Nationale des Ponts et Chaussées - Ecole Normale Supérieure de Paris)
    Abstract: The paper assesses the trade-creating impact of foreign-born residents on the international imports and exports of the French regions where they are settled. The pro-trade effect of immigrants is investigated along two intertwined dimensions: the complexity of traded goods and the quality of institutions in partner countries. The trade-enhancing impact of immigrants is, on average, more salient when they come from a country with weak institutions. However, this positive impact is especially large on the imports of simple products. When we turn to complex goods, for which the information channel conveyed by immigrants is the most valuable, immigration enhances imports regardless of the quality of institutions in the partner country. Regarding exports, immigrants substitute for weak institutions on both simple and complex goods.
    Keywords: MAUP; concentration; agglomeration; wage equations; gravity
    Date: 2009–05–07
  14. By: Dramane Coulibaly (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: This paper studies empirically the link between remittances and growth volatility by examining the impact of remittances on the propagation of real and monetary shocks. This study is conducted by employing dynamic panel generalized method of moment (GMM) technique for a sample of 63 countries over the 1980-2004 period. The volatility of terms of trade and inflation is used to proxy for real and monetary volatility, respectively. The results show that the impact of remittances on the propagation of shocks depends on the nature of shock. Precisely, the results show that remittances dampen the effect of terms of trade volatility, but, magnify the effect of inflation volatility. The results also suggest that the dampening effect of remittances on propagation of terms of trade volatility is greater in country with high level of financial development.
    Keywords: Remittances, financing constraints, volatility.
    Date: 2009–03
  15. By: Ralph Chami; Dalia Hakura; Peter Montiel
    Abstract: Remittance flows appear to be falling worldwide for the first time in decades as a result of the ongoing financial turmoil. It is suspected that the drop in remittance income into developing and emerging markets will have a destabilizing effect on these economies. The paper estimates the impact of remittances on output stability for countries that are dependent on these income flows. Using a sample of 70 countries, including 16 advanced economies and 54 developing countries, we find robust evidence that remittances have a negative effect on output growth volatility of recipient countries. This result supports the notion that remittance flows are a stabilizing influence on output. Thus, the fall in remittances precipitated by the ongoing global financial crisis could potentially increase output variability in recipient countries. This would present a hard challenge for governments in those countries already suffering from the crisis: they must resort to an already stressed and limited set of policy instruments, such as fiscal policy, to counter the resulting adverse economic and social impacts of lower remittances.
    Keywords: Inward remittances , Developing countries , Developed countries , Capital inflows , Economic growth , Production , External shocks , Financial crisis , Poverty , Financial stability , Economic models , Cross country analysis ,
    Date: 2009–04–23
  16. By: Brett Rayner; Joannes Mongardini
    Abstract: This paper builds on the methodology developed by Chudik and Mongardini (2007) to estimate the relationship between grants and remittances and the equilibrium real exchange rate in Sub-Saharan African (SSA) countries using panel techniques. The results indicate that grants and remittances are not associated, in the long run, with an appreciation of the real effective exchange in SSA and are therefore not likely to give rise to Dutch disease effects. These findings suggest that grants and remittances may be serving to ease supply constraints or boost productivity in the non-tradable sector in the recipient economies.
    Keywords: Capital inflows , Sub-Saharan Africa , Low-income developing countries , Inward remittances , Real effective exchange rates , Development assistance , Millennium Development Goals , Economic models ,
    Date: 2009–04–22
  17. By: Dramane Coulibaly (Centre d'Economie de la Sorbonne - Paris School of Economics)
    Abstract: This paper examines the macroeconomic determinants of migrants' remittances cycles. The study uses panel VAR methods in order to compensate for both data limitations and endogeneity among variables. The analysis considers annual data for 16 latin and Caribbean countries. By using these data I compute variance decompositions (VDCs) and impulse response functions (IRFs). The VDCs show that the forecast error variance of remittances is explained by host country GDP, home country GDP and the differential of interest rates between home and host countries. The IRFs analysis confirms these findings. First, the IRFs show that remittances respond positively to boom in host country. Second, for altruistic motivations, a recession in home country is accompanied by a increase in remittances inflows. The last result, related to self-interested motivations, is the increase in remittances inflows following a rise in the differential of interest rates between home and host countries.
    Keywords: International migration, remittances, business cycles.
    JEL: F22 F24 O15 O54
    Date: 2009–02

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