nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2010‒01‒10
24 papers chosen by
Yuji Tamura
Australian National University

  1. Migration, Ethnicity and Economic Integration By Constant, Amelie F.; Zimmermann, Klaus F.
  2. The children of immigrants in France: the emergence of a second generation By Thomas Kirszbaum; Yaël Brinbaum; Patrick Simon; Esin Gezer
  3. High Skilled Migration from India An Analysis of its Economic Implications By Sunil Mani
  4. The situation among children of migrant origin in Germany By Bernhard Nauck; Susanne Clauss
  5. Gender Differences in Native Preferences towards Undocumented and Legal Immigration: Evidence from San Diego By Amuedo-Dorantes, Catalina; Puttitanun, Thitima
  6. Children in immigrant families in Switzerland: on a path between discrimination and integration By Rosita Fibbi; Philippe Wanner
  7. The Social and Economic Impact of Philippine International Labor Migration and Remittances By Zosa, Victorina; Orbeta, Aniceto Jr. C.
  8. Children in immigrant families in the Netherlands: a statistical portrait and a review of the literature By Helga A. G. De Valk; Kris R. Noam; Alinda M. Bosch; Gijs C. N. Beets
  9. The situation of children in immigrant families in Italy: changes and challenges By Emiliana Baldoni; Giampiero Dalla Zuanna; Letizia Mencarini
  10. The situation of children in immigrant families in the United Kingdom By Heaven Crawley
  11. Migration and human capital in an endogenous fertility model By Luca Marchiori; Patrice Pieretti; Benteng Zou
  12. Peers, neighborhoods and immigrant student achievement - evidence from a placement policy By Grönqvist, Olof Åslund, Per-Anders Edin, Peter Fredriksson and Hans
  13. Review of the circumstances among children in immigrant families in Australia By Gerry Redmond; Ilan Katz
  14. Glass Ceilings or Glass Doors? Wage Disparity Within and Between Firms By Pendakur, Krishna; Woodcock, Simon D.
  15. Philippine International Labor Migration in the Past 30 Years: Trends and Prospects By Orbeta, Aniceto Jr. C.; Abrigo, Michael Ralph M.
  16. Institutions Serving Philippine International Labor Migrants By Orbeta, Aniceto Jr. C.; Cabalfin, Michael R.; Abrigo, Michael Ralph M.
  17. Did Children’s Education Matter? Family Migration as a Mechanism of Human Capital Investment. Evidence From Nineteenth Century Bohemia By Klein, Alexander
  18. Diaspora Externalities as a Cornerstone of the New Brain Drain Literature By Elisabetta Lodigiani
  19. Seeking similarity: How immigrants and natives manage at the labor market By Olof Åslund; Lena Hensvik; Oskar Nordström Skans
  20. Remittances and Financial Openness By Michel Beine; Elisabetta Lodigiani; Robert Vermeulen
  21. New Evidence on the Role of Remittances on Health Care Expenditures by Mexican Households By Amuedo-Dorantes, Catalina; Pozo, Susan
  22. Cultural Diversity and Local Labour Markets By Suedekum, Jens; Wolf, Katja; Blien, Uwe
  23. Motives and Giving Norms behind Remittances: the Case of Filipino Overseas Workers and their Recipient Households By Alba, Michael M.; Sugui, Jessaine Soraya C.
  24. Local social capital and geographical mobility By Quentin David; Alexandre Janiak; Etienne Wasmer

  1. By: Constant, Amelie F. (DIW DC, George Washington University); Zimmermann, Klaus F. (IZA, DIW Berlin and Bonn University)
    Abstract: This chapter deals with the economic and ethnic diversity caused by international labor migration, and their economic integration possibilities. It brings together three strands of literature dealing with the neoclassical economic assimilation, ethnic identities and attitudes towards immigrants and the natives, and provides an analysis in understanding their interactions. The issue of how immigrants fare in the host country especially in terms of their labor force participation and remuneration has been the core of research in the labor migration literature. If immigrants fare as well as the natives, then they are economically assimilated. While some immigrant groups do, most do not, especially in Europe. Of equal importance is how immigrants identify with the culture of their home and receiving countries, and if natives and immigrants have the right attitudes about each other. Ethnic identities and attitudes seem to be less affected by the economic environment but have implications for economic performance.
    Keywords: ethnicity, ethnic identity, acculturation, migrant assimilation, migrant integration, work, cultural economics
    JEL: F22 J15 J16 Z10
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp4620&r=mig
  2. By: Thomas Kirszbaum; Yaël Brinbaum; Patrick Simon; Esin Gezer
    Abstract: Special Series on the Situation of Children in Immigrant Families in Affluent Societies<br /><br /> In 2005, 4.9 million immigrants were residing in metropolitan France. This was 8.1 per cent of the population. Children of immigrants represent close to one fifth of all children. Children with at least one parent from Algeria, Morocco, or Tunisia make up almost 40 per cent of these children, and children of sub-Saharan African origin make up one eighth. Of the 3.5 million foreigners living in France in 2004, 450,000 were children 0-17 whose parents were foreign born.
    Keywords: child poverty; discrimination; education; health; immigration; migrant children; migrant families; migration policy; rights of minority children;
    JEL: F22
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ucf:inwopa:inwopa574&r=mig
  3. By: Sunil Mani
    Abstract: The purpose of the paper is first to quantify the extent of high skilled migration from India and then to distil out two of its economic implications to her home economy. [WP 416].
    Keywords: India, high skilled, brain drain, brain circulation, remittances, science and engineering work force, migration, skilled,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2344&r=mig
  4. By: Bernhard Nauck; Susanne Clauss
    Abstract: Special Series on the Situation of Children in Immigrant Families in Affluent Societies<br /><br /> Germany may be described as a country of immigrants. Resident foreign citizens alone number around 6.7 million. The share of children who are living with parents who are recent immigrants is quite large. More than 1 million children 0–17 years of age are foreign citizens. Counting German citizens, there are nearly 6 million children of migrant origin under the age of 25. Of all persons of migrant origin, nearly 30 per cent are in the 0–20 age group.
    Keywords: child poverty; discrimination; education; health; immigration; migrant children; migrant families; migration policy; rights of minority children;
    JEL: F22
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ucf:inwopa:inwopa575&r=mig
  5. By: Amuedo-Dorantes, Catalina (San Diego State University, California); Puttitanun, Thitima (San Diego State University, California)
    Abstract: The literature has noted that native views about legal as opposed to undocumented immigration in the U.S. differ. Furthermore, native views about immigration are known to vary by gender. Yet, most surveys do not inquire native men and women about their views with regards to the two distinct immigrant groups, thus impeding an analysis of differences in preferences towards legal and undocumented immigrants from the same sample of natives. Using a recent San Diego County survey, we examine differences in native male and female opinions with regards to legal and undocumented immigration and their determinants. Native preferences towards immigration appear to significantly differ by gender as well as according to immigrants' legal status. In addition, public finance and welfare concerns are among the key factors driving native male and female preferences towards legal and undocumented immigration. However, native women's attitudes are also impacted by concerns regarding the social integration and economic assimilation of undocumented immigrants possibly related to the alleged prejudice factor.
    Keywords: gender, native preferences, undocumented immigration, legal immigration
    JEL: J61 F22
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp4616&r=mig
  6. By: Rosita Fibbi; Philippe Wanner
    Abstract: Special Series on Children in Immigrant Families in Affluent Societies<br /><br /> There were 1.5 million documented foreigners living in Switzerland in 2000. This represented 20 per cent of the resident population, which is one of the highest shares of foreign residents within any country in Europe. Switzerland may be described as a country of immigrants because of significant inflows: of the resident population aged 15 and above, 23 per cent are foreign born. At the 2000 census, of the 1,442,000 children 0 to 17 years of age living in families in Switzerland, approximately 39 per cent (559,000) were members of families of foreign origin with at least one foreign-born parent. The countries of origin of 52 per cent of these families were outside the European Union. The 2000 census enumerated 350,000 children resident in Switzerland who were foreign citizens.
    Keywords: child poverty; discrimination; education; health; immigration; migrant children; migrant families; migration policy; rights of minority children;
    JEL: F22
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ucf:inwopa:inwopa578&r=mig
  7. By: Zosa, Victorina; Orbeta, Aniceto Jr. C.
    Abstract: The purpose of the paper was to summarize studies identifying the causes and effects of Philippine international labor migration and remittances and to highlight research gaps. Literature and reliability of findings that explore the many facets and implications of the social and economic impacts of international labor migration and remittances were assessed and reviewed. Impacts on education, health, family cohesion, fertility, and demographic distributions, as well as on consumption and investment, and poverty and inequality, were highlighted. The paper argued that understanding the social and economic impact of international labor migration and remittances is complex and an interdisciplinary research is needed to appropriately define the scope of its impact. To move our understanding of the issues forward, in-depth analyses using better specifications, estimation procedures, and data are necessary.
    Keywords: Philippines, international labor migration, social and economic impact
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-32&r=mig
  8. By: Helga A. G. De Valk; Kris R. Noam; Alinda M. Bosch; Gijs C. N. Beets
    Abstract: Special Series on Children in Immigrant Families in Affluent Societies<br /><br /> Of the total population of the Netherlands, about 19 per cent are foreign born or are born in the Netherlands with at least on parent born abroad. Almost 800,000 children (22.3 per cent of all children) are in immigrant families. Over 15 per cent of these children are foreign born. The rest have been born in the Netherlands each to at least one foreign-born parent. Europe is the most important region of origin of children in immigrant families. The Antilles and Aruba, Germany, Morocco, Suriname and Turkey are the major countries of origin.
    Keywords: child poverty; discrimination; education; health; immigration; migrant children; migrant families; migration policy; rights of minority children;
    JEL: F22
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ucf:inwopa:inwopa577&r=mig
  9. By: Emiliana Baldoni; Giampiero Dalla Zuanna; Letizia Mencarini
    Abstract: Special Series on Children in Immigrant Families in Affluent Societies<br /><br /> According to 2001 Census data more than 900,000 children aged 0-17, 10 per cent of all children in Italy, were born abroad or had at least one parent who was born abroad. One or both of the parents of about 500,000 children in immigrant families were born in less developed countries. Children now account for almost 23 per cent of the foreign population. In this report, we have analysed household composition and wellbeing of children in immigrant families with 2001 Italian Census data and 2006 survey data. Inclusion and other social issues are reviewed through the most recent literature.
    Keywords: child poverty; discrimination; education; health; immigration; migrant children; migrant families; migration policy; rights of minority children;
    JEL: F22
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ucf:inwopa:inwopa576&r=mig
  10. By: Heaven Crawley
    Abstract: Special Series on Children in Immigrant Families in Affluent Societies<br /><br /> The foreign-born population in the United Kingdom reached 4.9 million in 2001, representing 8.3 per cent of the total population. Around 2.1 million children (16.3 per cent of all children) were in immigrant families. A fifth of these children were foreign born. The remainder were born in the United Kingdom of at least one foreign-born parent. More than 40 per cent were in families from Asia, around 20 per cent in families from Africa and around 20 per cent in families from other countries in Europe. Bangladesh, Jamaica, India and Pakistan are some of the main countries of origin.
    Keywords: child poverty; discrimination; education; health; immigration; migrant children; migrant families; migration policy; rights of minority children;
    JEL: F22
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ucf:inwopa:inwopa579&r=mig
  11. By: Luca Marchiori; Patrice Pieretti; Benteng Zou (CREA, University of Luxembourg)
    Abstract: What is the impact of high-skilled emigration on fertility and human capital in migrants’ origin countries? This question is analyzed within an overlapping generations model where parents choose to finance higher education to a certain number of their children. It follows that families are composed of high- and low-skilled children who may both emigrate with a certain probability when they reach adulthood. It is found that a brain drain leads to a change in children’s skill composition, with parents choosing to provide higher education to a larger number of their children. A calibration of the model suggests that, following a brain drain, the additional children benefiting from higher education might in the long run compensate for the loss of high-educated workers and lead to a brain gain.
    JEL: F22 J13 J24
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:luc:wpaper:09-04&r=mig
  12. By: Grönqvist, Olof Åslund, Per-Anders Edin, Peter Fredriksson and Hans (Department of Economics)
    Abstract: Immigrants typically perform worse than other students in the OECD countries. We examine to what extent this is due to the population characteristics of the neighborhoods that immigrants grow up in. We address this issue using a governmental refugee placement policy which provides exogenous variation in the initial place of residence in Sweden. The main result is that, for a given share of immigrants in a neighborhood, immigrant school performance is increasing in the number of higly educated adults sharing the subject's ethnicity. A standard deviation increase in the fraction of highly educated adults in the assigned neighborhood increases compulsory school GPA by 0.9 percentile ranks. This magnitude corresponds to a tenth of the gap in student performance between refugee immigrant and native-born children. We also provide tentative evidence that the overall share of immigrants in the neighborhood has a negative effect on GPA.
    Keywords: Peer effects; Ethnic enclaves; Immigration; School performance
    JEL: I20 J15 Z13
    Date: 2009–12–10
    URL: http://d.repec.org/n?u=RePEc:hhs:uunewp:2009_017&r=mig
  13. By: Gerry Redmond; Ilan Katz
    Abstract: Special Series on the Situation of Children in Immigrant Families in Affluent Societies<br /><br /> There were about 1.5 million children 0 to 17 years of age in immigrant families in Australia in 2001. This represented almost 33 per cent of all children. More than a quarter of these children were in families from the most consistent countries of immigrant origin, Ireland and the United Kingdom. Another 17 per cent were in families from other parts of Europe, while 10 per cent were in families from New Zealand, and 3 per cent were in families from other countries in Oceania.
    Keywords: child poverty; discrimination; education; health; immigration; migrant children; migrant families; migration policy; rights of minority children;
    JEL: F22
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ucf:inwopa:inwopa573&r=mig
  14. By: Pendakur, Krishna (Simon Fraser University); Woodcock, Simon D. (Simon Fraser University)
    Abstract: We investigate whether immigrant and minority workers’ poor access to high-wage jobs – that is, glass ceilings – is attributable to poor access to jobs in high-wage firms, a phenomenon we call glass doors. Our analysis uses linked employer-employee data to measure mean- and quantile-wage differentials of immigrants and ethnic minorities, both within and across firms. We find that glass ceilings exist for some immigrant groups, and that they are driven in large measure by glass doors. For some immigrant groups, the sorting of these workers across firms accounts for as much as half of the economy-wide wage disparity they face.
    Keywords: glass ceilings, wage differentials, immigration, visible minorities, quantile regression, linked employer-employee data
    JEL: J15 J71 J31
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp4626&r=mig
  15. By: Orbeta, Aniceto Jr. C.; Abrigo, Michael Ralph M.
    Abstract: The paper characterizes how international labor migration became an enduring feature in the country’s development. It presents data on the flow of temporary and permanent international migrant workers in the last thirty years. Characteristics such as destination, occupation, education, sex, and age are presented. Using historical movements and motivations, the study then presented the likely prospects of the Philippine international labor migration market considering domestic and the global labor market developments. Long-term and short-term prospects were discussed and economic, demographic, political, and environmental factors were considered as factors affecting the future flow of international migrant workers.
    Keywords: Philippines, international labor migration
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-33&r=mig
  16. By: Orbeta, Aniceto Jr. C.; Cabalfin, Michael R.; Abrigo, Michael Ralph M.
    Abstract: This paper discusses public and private institutions that were established in the Philippines to provide services to Filipino international migrant workers. Thirty years of having explicit policy on international labor migration has resulted to the creation of various public agencies to promote, manage, and protect migrant workers. This paper looks at their evolution and at the letter and application of their mandates as well as how some have become models for many developing countries to follow. It presents how government migration services work together with nongovernment organizations in a complementary manner in order to be able to provide support to Filipinos working and living overseas. It also shows how these institutions cover all aspects of migration including but not limited to predeployment, deployment, onsite support services, and eventual return.
    Keywords: Philippines, international labor migration, institutions
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-31&r=mig
  17. By: Klein, Alexander (Department of Economics, University of Warwick)
    Abstract: This paper analyzes the rural-urban migration of families in the Bohemian region of Pilsen in 1900. Using a new 1300-family dataset from the 1900 population census I examine the role of children‘s education in rural-urban migration. I find that families migrated to the city such that the educational attainment of their children would be maximized and that there is a positive correlation between family migration and children being apprentices in urban areas. The results suggest that rural-urban migration was powered not only by the exploitation of rural-urban wage gaps but also by aspirations to engage in human capital investment.
    Keywords: migration ; human capital investment ; family decision-making
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:wrk:warwec:923&r=mig
  18. By: Elisabetta Lodigiani (CREA, University of Luxembourg)
    Abstract: The pace of international skilled migration has accelerated dur- ing recent decades and it has attracted considerable attention across scholars and politicians. This paper gives a general and critical idea of the brain drain issue. It provides stylized facts on the magnitude and skill composition of migration and explores the main ndings on brain drain. Then it focuses on diaspora networks and on the major chan- nels whereby they foster economic development in source countries. Some policy implications and general conclusion for future research are also given in the last part of the work.
    JEL: F2 O15 Z13
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:luc:wpaper:09-03&r=mig
  19. By: Olof Åslund (Institute for Labour Market Policy Evaluation (IFAU), Uppsala University); Lena Hensvik (Institute for Labour Market Policy Evaluation (IFAU), Uppsala University); Oskar Nordström Skans (Institute for Labour Market Policy Evaluation (IFAU), Uppsala University)
    Abstract: We show that immigrant managers are substantially more likely to hire immigrants than are native managers. The finding holds when comparing establishments in the same 5-digit industry and location, when comparing different establishments within the same firm, when analyzing establishments that change management over time, and when accounting for within-establishment trends in recruitment patterns. The effects are largest for small and owner-managed establishments in the for-profit sector. Separations are more frequent when workers and managers have dissimilar origin, but only before workers become protected by EPL. We also find that native managers are unbiased in their recruitments of former co-workers, suggesting that information deficiencies are important. We find no effects on entry wages. Our findings suggest that a low frequency of immigrant managers may contribute to the observed disadvantages of immigrant workers.
    Keywords: Minority workers, Labor mobility, Workplace segregation.
    JEL: J15 J21 J62 M51
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:crm:wpaper:200932&r=mig
  20. By: Michel Beine; Elisabetta Lodigiani; Robert Vermeulen (CREA, University of Luxembourg)
    Abstract: Remittances have greatly increased during recent years, becoming an important and reliable source of funds for many developing countries. Therefore, there is a strong incentive for receiving countries to attract more remittances, especially through formal channels. One way of doing so is to increase their financial openness, but this is not without costs. More specifically for developing countries, governments need to weight the positive effects of remittances with the additional risks in terms of macroeconomic volatility associated to financial openness. In this paper we investigate the link between remittance receipts and financial openness. We develop a small model and statistically test for the existence of such a relationship with a sample of 66 mostly developing countries from 1980-2005. Empirically we use a dynamic generalized ordered logit model to deal with the categorical nature of the financial openness policy. We account for the persistence of financial openness, initial conditions, trade openness, institutional quality and domestic financial development. In addition, we apply a two-step method akin to two stage least squares to deal with the potential endogeneity of remittances. We find a strong positive effect of remittances on financial openness, i.e. the more remittances a country receives, the more likely it will be financially open. This positive effect is both statistically significant and economically large.
    JEL: E60 F24 F41 O10
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:luc:wpaper:09-09&r=mig
  21. By: Amuedo-Dorantes, Catalina (San Diego State University, California); Pozo, Susan (Western Michigan University)
    Abstract: Using Mexico's 2002 wave of the Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH), we find that international remittances raise health care expenditures. Approximately 6 pesos of every 100 peso increment in remittance income are spent on health. The sensitivity of health care expenditures to variations in the level of international remittances is almost three times greater than its responsiveness to changes in other sources of household income. Furthermore, health care expenditures are less responsive to remittance income among lower-income households. Since the lower responsiveness may be partially due to participation of lower-income households in public programs like PROGRESA (now called Oportunidades), we also analyze the impact of remittances by health care coverage. As expected, we find that households with some kind of health care coverage – either through their jobs or via participation in PROGRESA – spend less of remittance income increments on health care than households lacking any health care coverage. Hence, remittances may help equalize health care expenditures across households with and without health care coverage.
    Keywords: remittances, health care, household expenditures, Mexico
    JEL: F24 I1
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp4617&r=mig
  22. By: Suedekum, Jens (University of Duisburg-Essen); Wolf, Katja (IAB, Nürnberg); Blien, Uwe (IAB, Nürnberg)
    Abstract: During the last decade there have been marked changes in the composition of the non-native workforce in the German labour market. In particular there has been a notable increase in the diversity of nationalities of which the foreign workforce is composed. In this paper we investigate the effects of this diversity for native employees. Our analysis is conducted at the local level and uses a panel of 326 Western German regions over the time period 1995-2006. When considering high-skilled foreign workers, we find that both the size of this group and the diversification into different nationalities raise local wages and employment for native employees. For low-skilled foreign workers we find negative size effects. However, these negative effects can be partly offset if the group of low-skilled foreigners is culturally diversified. Our results imply that diversity raises productivity at the local level, but that it is important to distinguish the skill composition of the foreign workforce. These findings remain robust in a variety of robustness checks that take into account omitted variable bias, self-selection of foreigners into particular regions, and spatial autocorrelation.
    Keywords: regional labour markets, cultural diversity, immigration, spatial equilibrium
    JEL: R23 J21 J31
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp4619&r=mig
  23. By: Alba, Michael M.; Sugui, Jessaine Soraya C.
    Abstract: The literature has focused on motives to explain remittance behavior. But as nonanonymous transfers, remittances are apt to be influenced by giving norms as well. We formulate an empirical specification that takes account of remittance motives involving worker-household pairs. We find that altruism dominates the exchange motive among overseas workers who are likely to be the primary breadwinners of their recipient households. We also find that in the subsample in which overseas workers are likely to be secondary breadwinners, (a) household labor income is an endogenous explanatory variable, and (b) the error covariance of the household income and remittance selection equations is positive. A possible reason for (a) is that secondary breadwinners use household income as an imperfect signal of opportunity cost or to detect unobserved effort, i.e., moral hazard, in generating income. As for (b), we surmise that it indicates the presence of incentive-compatible mechanisms against moral hazard. On giving norms, we find that, in samples that include overseas workers who are secondary breadwinners, remittance amounts are afflicted with negative selectivity. We present evidence that this is consistent with Filipino giving practices in which everyone gives but in modest amounts.
    Keywords: remittances, remittance motives, giving norms
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-26&r=mig
  24. By: Quentin David; Alexandre Janiak; Etienne Wasmer (CREA, University of Luxembourg)
    Abstract: In this paper, we attempt to understand the determinants of mobility through introduc- ing the concept of local social capital. Investing in local ties is rational when workers do not expect to move to another region, and reciprocally, once local social capital is accumulated, incentives to move are reduced. We build a model to illustrate several types of complementarities: observationally close individuals may take di¤erent paths characterized by high local social capital and low mobility vs. low social capital and high propensity to move. Employment protection reinforces the accumulation of local social capital and thus reduces mobility. Externalities generate multiple equilibria in which mobility and social capital are negatively correlated across equilibria. European data supports the theory: the South of Europe is characterized by both low mobility and local social capital, while the North of Europe has higher mobility and a more general type of social capital. Within a country and at the individual level, more social capital is associated with lower mobility.
    JEL: A10
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:luc:wpaper:09-11&r=mig

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