nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2010‒03‒13
eight papers chosen by
Yuji Tamura
Australian National University

  1. Does university quality drive international student flows?. By Van Bouwel, Linda; Veugelers, Reinhilde
  2. How Much Do We Know about the Impact of the Economic Downturn on the Employment of Migrants? By Meng, Xin; Kong, Sherry Tao; Zhang, Dandan
  3. On the institutional design of burden sharing when financing external border enforcement in the EU By Claus-Jochen Haake; Tim Krieger; Steffen Minter
  4. A Micro Data Analisys Of Italy’s Brain Drain By Monteleone, Simona; Torrisi, Benedetto
  5. New Immigrants' Assessments of Their Life in Canada By Houle, René; Schellenberg, Grant
  6. The Macroeconomic Impact of Skilled Emigration from South Africa: A CGE Analysis By Heinrich R Bohlman
  7. Can Remittances Spur Economic Growth and Development? Evidence from Latin American Countries (LACs). By Bichaka Fayissa; Christian Nsiah
  8. Remittances and Domestic Investment in Developing Countries: An Analysis of the Role of Financial Sector Development By Laurent Gheeraert; Ritha Sukadi; Daniel Traça

  1. By: Van Bouwel, Linda; Veugelers, Reinhilde
    Abstract: We examine whether the (research) quality of a country’s higher education system drives macro-flows of foreign tertiary students in Europe. We use various measures on the quality of a country’s higher education system in an extended gravity model. We find that quality has a positive and significant effect on the size and direction of flows of students exchanged between 18 European countries.
    Keywords: international student mobility; higher education; university rankings; quality indicators;
    Date: 2009–12
  2. By: Meng, Xin (Asian Development Bank Institute); Kong, Sherry Tao (Asian Development Bank Institute); Zhang, Dandan (Asian Development Bank Institute)
    Abstract: The employment shock of late 2008 in the People's Republic of China (PRC) may have been a product of three different events: (i) the contractionary macroeconomic policies introduced by the government and the central bank in 2007 to slow growth, (ii) the introduction of the new Labor Contract Law at the start of 2008, and (iii) the reduction in export orders due to the global financial crisis from the second half of 2008. These three events occurred sequentially, and their impact on employment has been borne most heavily by rural-urban migrants. Using unique data that track 5,000 migrant households in 15 cities from 2008 to 2009, this paper documents the size of the employment impact of the economic downturn, investigates the geographic location and industry distribution of the effect, and examines the types of migrant workers who lost their jobs in 2008 because of the economic downturn. We find that job loss is not confined to export manufacturing industries, nor is it restricted to coastal cities where export industries are located. We interpret this widespread job loss to indicate that the employment shock that took place in the PRC at the end of 2008 and early 2009 was a response to both the global financial crisis and domestic economic policies
    Keywords: labor; migrant; labor contract law; prc; employment shock
    JEL: J64
    Date: 2010–02–12
  3. By: Claus-Jochen Haake (University of Paderborn); Tim Krieger (University of Paderborn); Steffen Minter (University of Paderborn)
    Abstract: Illegal immigration affects not only EU member states at the Mediterranean Sea but also more Northern states due to open internal borders and onward migration. Northern member states may free-ride on border countries’ enforcement efforts, leading to a sub-optimal level of border control. While neither a centralized nor a coordinated policy appears to be feasible, we show that employing an expected externality mechanism leads to voluntary preference revelation with respect to immigration policy under several (but not all) scenarios. This policy measure requires, however, the EU Commission to take on a very active role as moderator between member states, which at the same time must accept the Commission to play this role.
    Keywords: illegal migration, immigration policy, border enforcement, interregional transfers, European Union, expected externality mechanism
    JEL: F22 J61 J68
    Date: 2010–01
  4. By: Monteleone, Simona; Torrisi, Benedetto
    Abstract: Contrary to current thinking which views the European brain drain as a transitory phenomenon, this paper shows, using a micro-data analysis, that, as far as Italy is concerned, such migration is permanent. The present study provides new empirical evidence on the propensity to return. The empirical approach and analytical models used outline the profile of the emigrants, their reasons for flight, the drawing factors and the aspects governing return. Our findings are robust and statistics significant in the results and to the choice of instruments and the empirical model we apply.
    Keywords: Permanent migration; Propensity of return; OLS; GLM.
    JEL: F22 O15 J24
    Date: 2010–01–08
  5. By: Houle, René; Schellenberg, Grant
    Abstract: In this paper, the Longitudinal Survey of Immigrants to Canada (LSIC) is used to examine how immigrants in the 2000-2001 landing cohort subjectively assess their life in Canada. The paper provides a useful complement to other studies of immigrant outcomes that often focus on employment, income or health. Four years after landing, about three-quarters of LSIC respondents said they were satisfied or very satisfied with their life in Canada, and a comparable proportion said their expectations of life in Canada had been met or exceeded. Nearly 9 out of 10 said that, if given the chance, they would make the same decision again to come to Canada. A broad range of demographic, social and economic characteristics are associated with subjective assessments. Positive assessments of life in Canada are less prevalent among individuals in their thirties and forties, and university graduates and principal applicants in the skilled worker admission category, than they are among other groups. While assessments of life in Canada are correlated with economic factors such as personal income, they are also correlated with social factors such as relationships with neighbours and perceptions of discrimination.
    Keywords: Ethnic diversity and immigration, Immigrants and non-permanent residents, Integration of newcomers
    Date: 2010–02–18
  6. By: Heinrich R Bohlman
    Date: 2010
  7. By: Bichaka Fayissa; Christian Nsiah
    Abstract: For the last five decades, there have been heated debates on the sources of economic growth in developing economies. The perceived factors of economic growth have ranged from surplus labor to investment in human and physical capital, transfer of technological change, overseas development assistance, flow of private capital, increasing returns from investment in new ideas and research and development. The impacts of the above listed traditional sources of economic growth have been well documented in literature. Researchers have also considered the importance of institutional factors such as the role of political freedom, political instability, voice and accountability on economic growth and development. Despite the increased size of remittances in the total international capital flows, however, the relationship between remittances and economic growth has not been adequately studied. This study explores the aggregate impact of remittances on the economic growth of 18 Latin American Countries within the conventional neoclassical growth framework using an unbalanced panel data spanning from 1980 to 2005. We find that remittances have a positive and significant effect on the growth of Latin American Countries where the financial systems are less developed by providing an alternative way to finance investment and helping overcome liquidity constraints.
    Keywords: Workers’ Remittances, Economic Growth, Panel Data, Arellano-Bond, Latin American Countries
    JEL: E21 F21 G22 J61 O16
    Date: 2010–03
  8. By: Laurent Gheeraert (Centre Emile Bernheim, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Brussels.); Ritha Sukadi (Centre Emile Bernheim, CERMi, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Brussels.); Daniel Traça (Centre Emile Bernheim, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Brussels and Universidade Nova de Lisboa)
    Abstract: This paper addresses the relationship between remittances and home country investment in developing countries. It highlights, through both a theoretical model and an empirical analysis, the role of financial sector development (FSD) in the impact of remittances on home country investment. The key contribution of the paper is to show that different transaction costs traditionally associated with the FSD, namely 'Cost of Bank Depositing' and 'Cost of External Finance', have conflicting effects on the marginal impact of remitances on investment. Our stylized model, which addresses the specificities of remittance flows through the loanable funds market, yields several intuitive results. First, the marginal impacts of remittances on bank-deposits and formal investment are positive. Second, both marginal impacts increase when the Cost of Bank Depositing declines. Third, a decrease in Cost of External Finance lowers the marginal impact on formal investment, and does not affect the marginal impact on bank deposits. Hence, since FSD lowers both transaction costs, it has an ambiguous effect on the marginal impact on investment. The empirical analysis on a sample of 100 developing countries, using both cross-section and panel-data methodologies, confirms our model's predictions.
    Keywords: remittances, investment, growth, financial sector development, transaction cost, openness
    JEL: F24 O16 G2
    Date: 2010–02

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