nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2010‒02‒20
fifteen papers chosen by
Yuji Tamura
Australian National University

  1. The Working Hours of Immigrants in Germany: Temporary versus Permanent By Kahanec, Martin; Shields, Michael P.
  2. Immigration Policies and the Ecuadorian Exodus By Bertoli, Simone; Fernández-Huertas Moraga, Jesús; Ortega, Francesc
  3. Cyclical dimensions of labour mobility after EU Enlargement By Alan Ahearne; Herbert Brücker; Zsolt Darvas; Jakob von Weizsäcker
  4. Raining stones? Female immigrants in the Spanish Labor Market By Antón, José-Ignacio; Muñoz de Bustillo, Rafael; Carrera, Miguel
  5. Macroeconomic Consequences of Global Endogenous Migration: A General Equilibrium Analysis By Vladimir Borgy; Xavier Chojnicki; Gelles Le Garrec; Cyrille Schwellnus
  6. Returning to the Question of a Wage Premium for Returning Migrants By Barrett, Alan; Goggin, Jean
  7. The Effects of Migration and Remittances in Rural Moldova By Eugene Hristev; Georgeta Mincu; Maya Sandu; Mateusz Walewski
  8. Migration of Health Care Professionals from India: A Case Study of Nurses By Ann Issac; Nirmalya Syam
  9. Remittances and Household Welfare: A Case Study of Bangladesh By Raihan, Selim; H. Khondker, Bazlul; Sugiyarto, Guntur; Jha, Shikha
  10. Will immigration in the future make it easier to support an ageing population? By Ekberg, Jan
  11. Remittances and Household Behavior in the Philippines By P. Ang, Alvin; Sugiyarto, Guntur; Jha, Shikha
  12. The Effect of Birthright Citizenship on Parental Integration Outcomes By Ciro Avitabile; Irma Clots-Figueras; Paolo Masella
  13. The Strength and Persistence of Entrepreneurial Cultures By Foreman-Peck, James; Zhou, Peng
  14. Job recruitment networks and migration to cities in India By Vegard Iversen; Kunal Sen; Arjan Verschoor; Amaresh Dubey
  15. China's Labour Market in Transition: Job Creation, Migration and Regulation By Richard Herd; Vincent Koen; Anders Reutersward

  1. By: Kahanec, Martin (IZA); Shields, Michael P. (Central Michigan University)
    Abstract: Migration is often viewed as an investment decision. Temporary migrants can be expected to invest less in accumulating human capital specific to the host country. Instead, they work more hours in order to accumulate savings and invest in financial capital that can be transferred back to their country of origin upon return. In this paper, using German panel data, we explore how temporary migrants differ from permanent migrants in their labor supply decisions and behavior. Upon correcting for endogeneity bias, temporary migrants are found to work more hours than permanent ones. This result supports the human capital theory and a household production model of migration where migrants may be temporary by choice and not because of legal restrictions or even a bad experience in the labor market.
    Keywords: migration, temporary migrants, labor supply, Germany
    JEL: J22 J61 F22
    Date: 2010–01
  2. By: Bertoli, Simone (European University Institute); Fernández-Huertas Moraga, Jesús (IAE Barcelona (CSIC)); Ortega, Francesc (Universitat Pompeu Fabra)
    Abstract: Ecuador experienced an unprecedented wave of international migration since the late 1990s, triggered by a severe economic and financial crisis. This paper gathers individual-level data from Ecuador and the two main destinations of Ecuadorian migrants: the US and Spain. First, we provide a careful description of the main characteristics of migration flows, both in terms of their scale and skill composition. Second, we estimate Mincer regressions for Ecuadorians in the three countries, and attempt to reconcile the features of migration flows with our predictions for earnings by destination. We find that earnings differences can account for the higher share of college graduates among migrants to the US, but fail to explain the larger scale of the flows to Spain. We argue that the puzzle is explained by taking into account that (i) the options to migrate legally to either destination were slim, and (ii) the cost of illegally migrating to Spain was lower than to the US.
    Keywords: migration, selection, sorting, immigration policies
    JEL: O15 J61 D31
    Date: 2010–02
  3. By: Alan Ahearne; Herbert Brücker; Zsolt Darvas; Jakob von Weizsäcker
    Abstract: At a time of symmetric global slowdown, migration cannot contribute as much to absorbing economic shocks as it could if the shock were asymmetric. Early evidence suggests that the crisis has led to a drop in immigration and even net return migration from some countries. This has helped the adjustment of former EU15 host countries and has exacerbated adjustment in former source countries in the new member states. In the short run, the authors believe that the stock of new member-state migrants in the EU15 will fall owing to diminished job opportunities for migrants. In the longer run, the crisis is set to increase migration from the new member states compared to what would have been the case without the crisis.
    Date: 2009–05
  4. By: Antón, José-Ignacio; Muñoz de Bustillo, Rafael; Carrera, Miguel
    Abstract: The aim of this paper is to analyze how female migrants fare in the labor market in Spain, a country that has experienced impressive immigration flows during the last decade. Particularly, we explore the differential access to employment and the earnings penalty faced by this group considering the interaction between two potential sources of disadvantage for migrant women: gender and migrant condition. Our findings suggest that migrant women do face this double negative disadvantage. In both cases, we find an economically significant gap, at least for migrants from non-developed countries. Regarding the former, the larger unemployment rate of female migrants is not explained by observable characteristics. In the case of earnings differential, although human capital endowments play a relevant role, both the unexplained earnings penalty associated with gender and migrant status slightly rise across the distribution of wages, suggesting the existence of a sort of glass ceiling for female immigrants.
    Keywords: immigration; women; Spain; unemployment; earnings
    JEL: J31 J70
    Date: 2010–02–08
  5. By: Vladimir Borgy; Xavier Chojnicki; Gelles Le Garrec; Cyrille Schwellnus
    Abstract: In this paper, we analyze the demographic and economic consequences of endogenous migrations flows over the coming decades in a multi-regions overlapping generations general equilibrium model (INGENUE 2) in which the world is divided in ten regions. Our analysis offers a global perspective on the consequences of international migration flows. The value-added of the INGENUE 2 model is that it enables us to analyze the effects of international migration on both the destination and the origin regions. A further innovation of our analysis is that international migration is treated as endogenous. In a first step, we estimate the determinants of migration in an econometric model. We show, in particular, that the income differential is one of the key variables explaining migration flows. In a second step, we endogenize migration flows in the INGENUE 2 model. In order to do so, we use the econometrically estimated relationships between demographic and income developments in the INGENUE model, which enables us to project long-run migration flows and to improve on projections of purely demographic models.
    Keywords: CGEM, Migration, International capital flows
    JEL: F21 C68 J61 H55
    Date: 2009
  6. By: Barrett, Alan (ESRI, Dublin); Goggin, Jean (ESRI, Dublin)
    Abstract: Using data from a large-scale survey of employees in Ireland, we estimate the extent to which people who have emigrated from Ireland and returned earn more relative to comparable people who have never lived abroad. In so doing, we are testing the hypothesis that migration can be part of a process of human capital formation. We find through OLS estimation that returners earn 7 percent more than comparable stayers. We test for the presence of self-selection bias in this estimate but the tests suggest that the premium is related to returner status. The premium holds for both genders, is higher for people with post-graduate degrees and for people who migrated beyond the EU to the US, Canada, Australia and New Zealand. The results show how emigration can be positive for a source country when viewed in a longer term context.
    Keywords: return migration, Ireland, brain drain, brain circulation
    JEL: J61 O15
    Date: 2010–02
  7. By: Eugene Hristev; Georgeta Mincu; Maya Sandu; Mateusz Walewski
    Abstract: Remittances in Moldova reach 36% of GDP, hence they constitute an essential part of the Moldovan economy. The most visible characteristic of remittances is their unequal distribution. The analysis applying the standard Lorenz Curve proves that 75% receiving households gets only 25% of total amount being sent to the country. The way remittances are distributed does not seem to be random. Higher amounts go in general to younger and more educated households. Remittances strongly influence the economic potential of households, especially if they are high enough. They often constitute the main source of households' income, but they not discourage the members of receiving households from economic activity. It indicates that migration and working abroad is the manifest of economic activity, on the other hand it suggest that lack of employment opportunities in the country is an important reason for migration. Those who obtain remittances tend to have higher share of investments in their total household spending. Significant share of remittances for all groups is spent on education - the basic investment increasing the future competitiveness. In rural areas remittances are much more often used to improve the quality of farms than to start running other businesses. It seems that lack of infrastructure and good governance is the main reason for which educated and young emigrants sending significant amounts of money do not decide to invest them in entrepreneurial activities. Eradicating these impediments for local development should be become a highest priority.
    Keywords: Moldova, migrations, remittances, labor market, welfare, rural areas
    JEL: F22 F24 I31 J21 J61 R23
    Date: 2009
  8. By: Ann Issac; Nirmalya Syam
    Abstract: The study attempts to examine why there is staff shortage of health care professionals especially the nurses in India and the impact of such migration on services like emergency preparedness, quality of care, patient safety and access to needed health care services especially for vulnerable populations.
    Keywords: nurses, migration, professional migration, Mode 4 services, India, humanpower, manpower,Sociology, migration studies, health professionals, nursing education, medical education, health personnel, health manpower, health care, hospitals, nursing care
    Date: 2010
  9. By: Raihan, Selim (University of Dhaka); H. Khondker, Bazlul (University of Dhaka); Sugiyarto, Guntur (Asian Development Bank); Jha, Shikha (Asian Development Bank)
    Abstract: This paper examines the impacts of international remittances on household consumption expenditure and poverty in Bangladesh using computable general equilibrium modeling of the Bangladesh economy and microeconometric analysis at the household level. The former assesses the economic effects and distributional implications of remittances at the macro, sectoral, and household group levels, while the latter shows the association between remittances and household consumption expenditure, including poverty status. The first results show that remittances have positive effects on the economy and reduce poverty. It is estimated that 1.7 out of the 9 percentage point reduction in the headcount ratio during 2000–2005 was due to the growth in remittances. A closer look at the household level further reveals the positive and significant impacts of remittances on the household’s food and housing-related expenditures. The impacts on education and health expenditures are also positive but insignificant. Moreover, the logit regression results suggest that the probability of the household becoming poor decreases by 5.9% if it receives remittances, which further confirms the positive impact of remittances. Given that migration and remittances also bring costs to the society, the study findings call for policies to maximize their benefits. This includes attracting more remittances through formal channels and increasing their productive use.
    Keywords: International migration and remittances; Household welfare; Poverty; CGE Model; Microeconometrics; Bangladesh
    Date: 2009–12
  10. By: Ekberg, Jan (Centre for Labour Market Policy Research (CAFO))
    Abstract: Sweden and many other Western countries are facing a demographic development with an ageing population which will burden their public finances. Already today, the sum of yearly public expenditures in Sweden is about 50 percent of gross national product (GNP). Will future immigration alleviate the burden on the welfare system? Immigrants usually have a low proportion of old people and a high proportion of people of working age. Calculations for Sweden up to the year 2050 show, however, that the positive net fiscal contribution of immigrants is small even if they are well integrated on the labour market. The reason is that future immigration will increase the size of the population and thereby raise not only tax receipts but also public expenses. The fiscal impact is sensitive to immigrants’ integration into the labour market. If, for example, the rate of labour force participation of future immigrants will be the same as that of foreign born now living in Sweden, the fiscal consequences would be negative, but small also in that case. For most years up to 2050, the calculated positive/negative net contribution effect is less than one percent of GNP. The same positive net contribution could be achieved through a better integration of immigrants already living in Sweden.
    Keywords: Demography; Forecasting; Immigration
    JEL: J11
    Date: 2010–02–09
  11. By: P. Ang, Alvin (University of Santo Tomas); Sugiyarto, Guntur (Asian Development Bank); Jha, Shikha (Asian Development Bank)
    Abstract: As one of the world’s largest recipients of remittances, the Philippines received remittances roughly 12% of its gross domestic product in 2008. Remittances have become the single most important source of foreign exchange to the economy and a significant source of income for recipient families. Using the instrument variable estimation technique, this study examines the role of remittances in increasing household consumption and investment and thereby their potential for rebalancing economic growth and creating long-term human and capital investment. The results indicate that remittances negatively influence the share of food consumption in the total expenditure. However, unlike previous studies, the estimations show that remittances to the Philippines do not have a significant influence on other key items of consumption or investment such as spending on education and health care. A further analysis using logistical regression shows that remittances help to lift households out of poverty. Remittances thus may help in fighting poverty in the Philippines but not in rebalancing growth, especially in the long run.
    Keywords: Remittances; migrants; household consumption; investment; poverty; Philippines
    Date: 2009–12
  12. By: Ciro Avitabile (Università di Napoli Federico II and CSEF); Irma Clots-Figueras (Universidad Carlos III de Madrid); Paolo Masella (University of Mannheim)
    Abstract: This paper provides empirical evidence on whether child legal status at birth affects the level of cultural integration of immigrant parents with native community. We consider the 1999 reform of the German nationality law, which introduced birthright citizenship for children born in Germany to non-German citizen parents. Our results show that changes in the rules that regulate child citizenship have significantly increased parents’ propensity to establish contacts with German citizens and use the German language. The effect on parents’ integration varies according to the initial endowment of human capital and the level of integration in their local ethnic community.
    Keywords: Citizenship Status, Migration, Integration
    JEL: K40 J15
    Date: 2010–02–09
  13. By: Foreman-Peck, James (Cardiff Business School); Zhou, Peng (Cardiff Business School)
    Abstract: Becoming an entrepreneur requires both motivation and opportunity. Motivation may be determined by collective experience or 'culture', as well as by personality. Whether a culture is conducive or harmful to entrepreneurship can only be established if the influence of institutions that determine opportunity is controlled. The twentieth century United States provides a natural experiment to measure the strength and persistence of entrepreneurial cultures. Assuming immigrants bear the cultures of their birth place, comparison of revealed entrepreneurial propensities of US immigrant groups in 1910 and 2000 will reflect these backgrounds. According to this test North-western Europe, where modern economic growth is widely held to have originated, did not host unusually strong entrepreneurial cultures, rather the reverse in the case for England. The most precocious and durable entrepreneurial cultures were exhibited by those originating from Greece, Turkey and Italy, together with Jews. Max Weber's identification of nineteenth century Catholic culture as inimical to economic development is not born out in the twentieth century by the sustained entrepreneurship of Cubans and Italians. A major cultural change over the century, that by the end had initiated widespread female entrepreneurship, also ensured that this trait systematically responded less strongly to the origin background than did male entrepreneurship.
    Keywords: Entrepreneurship; Culture; Migration
    JEL: D01 J15 J23 J61
    Date: 2009–12
  14. By: Vegard Iversen (School of Development Studies, University of East Anglia, Norwich); Kunal Sen (IDPM, University of Manchester); Arjan Verschoor (School of Development Studies, University of East Anglia, Norwich); Amaresh Dubey (CSRD, Jawaharlal Nehru University, New Delhi`)
    Abstract: Economists have focused on job search and supply-side explanations for network effects in labour transactions. This paper develops and tests an alternative explanation for the high prevalence of network-based labour market entry in developing countries. In our theoretical framework, employers use employee networks as screening and incentive mechanisms to improve the quality of recruitment. Our framework suggests a negative relationship between network use and the skill intensity of jobs, a positive association between economic activity and network use and a negative relationship between network use and pro-labour legislation. Furthermore, social identity effects are expected to intensify compared to information-sharing and other network mechanisms. Using data from an all-India Employment Survey we implement a novel empirical strategy to test these relationships and find support for our demand-side explanation.
    Date: 2009–01
  15. By: Richard Herd; Vincent Koen; Anders Reutersward
    Abstract: Over the past decade, the share of jobs not controlled by the state has increased considerably, whilst employment in agriculture has declined, against the backdrop of ongoing urbanisation. Over 200 million people have been drawn into urban areas through official or unofficial migration, despite various obstacles to labour mobility, including the registration system and the associated restrictions to social service access. New labour laws were introduced in 2008 to better protect employees in a market now dominated by private-sector employers, notably via more systematic use of and adherence to written labour contracts, in particular of indefinite duration ones. To what extent the new legislation and implementing regulations will be enforced remains to be seen. For the time being, de facto employment protection is far less than de jure, with an enduring preponderance of fixed-term contracts, involving few restrictions. Minimum wages are set locally and have not kept up with average wages, nor are they effectively enforced. During the recent slowdown, average wages adjusted rapidly and employment was soon on the rise again. However, this episode also highlighted the need to integrate migrants better, not least by relaxing registration rules.<P>Le marché du travail chinois en transition : création d’emplois, migrations et régulation<BR>Au cours des dix dernières années, la proportion d’emplois non contrôlés par l’État a augmenté considérablement, tandis que les possibilités de travail dans le secteur de l’agriculture s’amenuisaient sur fond d’urbanisation ininterrompue. Plus de 200 millions de personnes ont migré – officiellement ou non – vers des zones urbaines, en dépit des nombreux obstacles qui freinent la mobilité de la main-d’oeuvre, notamment le système d’enregistrement et les contraintes qu’il impose en matière d’accès aux services sociaux. Depuis 2008, le marché du travail est soumis à de nouvelles réglementations, visant à assurer aux employés une meilleure protection sur un marché aujourd’hui dominé par les employeurs du secteur privé : on soulignera le recours plus systématique au contrat de travail écrit, et en particulier au contrat de durée indéterminée. On ignore encore dans quelle mesure seront respectées la nouvelle législation et les modalités d’application. Pour l’heure, la protection réelle des employés est très inférieure à ce que prévoit le droit, et les contrats les plus répandus restent les contrats de durée déterminée qui offrent peu de protection. Le montant du salaire minimum est fixé au niveau local, sans référence au salaire moyen, et n’est d’ailleurs pas effectivement respecté. Dans la récente période de ralentissement économique, les salaires moyens ont été ajustés rapidement et l’emploi a connu une embellie. Toutefois, cet épisode a également mis en lumière la nécessité d’une meilleure intégration des migrants, notamment par un assouplissement des modalités d’enregistrement.
    Keywords: unemployment, employment, social services, China, minimum wage, labour market, access, hukou, contracts, urbanisation, chômage, marché du travail, emploi, salaire minimum, Chine, hukou, contrats, urbanisation, accès aux services sociaux
    JEL: E24 J21 J23 J24 J31 J41 J42 J61 J63 J65 J71 J82 J83 K31 O53 P23 R23
    Date: 2010–02–01

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