nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2009‒08‒02
seven papers chosen by
Yuji Tamura
Australian National University

  1. Symbolic Values, Value Formation and Interpersonal Relations By Corneo, Giacomo
  2. Migratory Equilibria with Invested Remittances By Claire Naiditch; Radu Vranceanu
  3. Demographic and Geographic Determinants of Regional Physician Supply By Michael Kuhn; Carsten Ochsen
  4. Immigrant Circulation and Citizenship: Hotel Canada? By DeVoretz, Don J.
  5. On the Robustness of Brain Gain Estimates By Beine, Michel; Docquier, Frédéric; Rapoport, Hillel
  6. Macroeconomic Determinants of Migrants' Remittances : New Evidence from a panel VAR By Dramane Coulibaly
  7. Remittances, financing constraints and growth volatility : Do remittances dampen or magnify shocks ? By Dramane Coulibaly

  1. By: Corneo, Giacomo (Free University of Berlin)
    Abstract: Interpersonal relations are shaped by the judgements associated with the social categories that individuals perceive in their social contacts. I develop a model of how those judgments form based on a theory of symbolic values. The model depicts the interaction between two values, one associated with an inherited ethnic trait ("nationality") and one with an endogenous achievement trait ("income"). Individuals who are less likely to achieve are predicted to invest more value on nationalism and to have hostile relations with immigrants. Multiple equilibria are possible and better schooling may eliminate equilibria with xenophobia. Econometric findings from three large surveys corroborate the predictions derived from the theoretical model.
    Keywords: nationalism, immigration, interpersonal relations, value systems
    JEL: Z1
    Date: 2009–07
  2. By: Claire Naiditch (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Radu Vranceanu (Department of Economics - ESSEC)
    Abstract: This paper analyzes international migrations when migrants invest part of their income in their origin country. This investment contributes to increase capital intensity and wages in the origin country, thus reducing the scope for migrating. We show that a non-total migratory equilibrium can exist if the foreign wage is not too high, and/or migratory and transfer costs are not too low. Exogenous shocks, such as an increase in the foreign wage, lead to an increase in optimal remittances per migrant, and a higher wage in the origin country. Yet the net effect on the equilibrium number of migrants is positive. Hence, in equilibrium, optimal remittances and number of migrants are positively related. We use data from twenty fi…ve countries from Eastern Europe and Central Asia in 2000 in order to test for this implication of our model. OLS and bootstrap estimates put forward a positive elasticity of the number of migrants with respect to remittances per migrant. Policy implications follow.
    Keywords: Remittances, Investment motive, Migratory Policy.
    Date: 2009–04
  3. By: Michael Kuhn (Vienna Institute of Demography); Carsten Ochsen (University of Rostock)
    Abstract: Against the backdrop of an ongoing debate in most countries about the geographic (mal-)distribution of physician practices, we develop a theoretical and empirical framework to analyze how physician supply at regional level depends on demographic (population size, age struc- ture, fertility and migration) and geographic determinants. Particular attention is given (i) to local population change as a predictor of fu- ture demand for physician services, (ii) to the way in which the age- structure of the (potential patient) population and regional structure interact in shaping the pro…tability of treating the local population, and (iii) to cross-regional correlations in physician supply. Using re- gional data for Germany, we examine econometrically the determinants of regional physician supply. We …nd it to be negatively related to both the population share 60+ and the population share 20- in rural areas. While both population shares tend to have a less negative impact in urban areas, a pronounced positive e¤ect arises only for the share 20- in regions with agglomeration character. Net migration and natural balance turn out to be signi…cant positive as long-run determinants only, indicating thus their role as predictors of future demand. On av- erage, cross-regional spillovers in demand do not seem to be important determinants of regional supply.
    Keywords: age structure, physician supply, regional population ageing, regional migration, overlapping generations, panel data, spatial model
    JEL: I11 J44 J10 R23 C33 C31
    Date: 2009
  4. By: DeVoretz, Don J. (Simon Fraser University)
    Abstract: Canada has experienced a unique problem as a subset of its immigrants, approximately 10%, leave after ascension to citizenship. In this paper I argue that both the degree of immigrant naturalization and subsequent emigration from Canada is conditioned by economic opportunities and Canadian citizenship policies. A triangular model of movement comprising the concept of an entrepôt destination serves as a basis to argue that immigrants to entrepôt countries are faced with the decision to stay or leave after citizenship ascension. Limited evidence is presented to support the conclusion that recently naturalized Canadian immigrants who leave for a third country (USA) or return home (Hong Kong) experience positive selection and overachieve.
    Keywords: emigration, return migration, citizenship
    JEL: J62
    Date: 2009–07
  5. By: Beine, Michel (University of Luxembourg); Docquier, Frédéric (Catholic University of Louvain); Rapoport, Hillel (Bar-Ilan University)
    Abstract: Recent theoretical studies suggest that migration prospects can raise the expected return to human capital and thus foster education investment at home or, in other words, induce a brain gain. In a recent paper (Beine, Docquier and Rapoport, Economic Journal, 2008) we used the Docquier and Marfouk (2006) data set on emigration rates by education level to examine the impact of brain drain migration on gross (pre-migration) human capital formation in developing countries. We found a positive effect of skilled migration prospects on human capital growth in a cross-section of 127 developing countries, with an elasticity of about 5 percent. In this paper we assess the robustness of our results to the use of alternative brain drain measures, definitions of human capital, and functional forms. We find that the results hold using the Beine et al. (2007) alternative brain drain measures controlling for whether migrants acquired their skills in the home or in the host country. We also regress other indicators of human capital investment on skilled migration rates and find a positive effect on youth literacy while the effect on school enrolment depends on the exact specification chosen.
    Keywords: brain drain, brain gain, migration
    JEL: F22
    Date: 2009–07
  6. By: Dramane Coulibaly (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    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.
    Date: 2009–02
  7. 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

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