nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2010‒04‒17
37 papers chosen by
Yuji Tamura
Australian National University

  1. Source Country Characteristics and Immigrants’ Migration Duration and Saving Decisions By Murat Kirdar
  2. Net-immigration of developing countries: The role of economic determinants, disasters, conflicts, and political instability By Ziesemer, Thomas
  3. Temporary Labour Migration and Welfare at the New European Fringe : A Comparison of Five Eastern European Countries By Alexander M. Danzer; Barbara Dietz
  4. Migration and Remittances in Macedonia : A Review By Barbara Dietz
  5. On the robustness of brain gain estimates By Michel Beine; Frédéric Docquier; Hillel Rapoport
  6. The remitting patterns of African migrants in the OECD By Bollard, Albert; McKenzie, David; Morten, Melanie
  7. Brain Drain from Turkey: Return Intentions of Skilled Migrants By Nil Demet Güngör; Aysit Tansel
  8. Top Ten Myths and Fallacies Regarding Immigration By Chiswick, Barry R.
  9. How does immigration affect native internal mobility? New evidence from Italy By Sauro Mocetti; Carmine Porello
  10. Attitudes towards immigration in Europe By Sarah Bridges; Simona Mateut
  11. Health care utilization among immigrants and native-born populations in 11 European countries. Results from the Survey of Health, Ageing and Retirement in Europe By Aïda Solé-Auró; Montserrat Guillén; Eileen M. Crimmins
  12. Intergenerational Transmission of Abilities and Self Selection of Mexican Immigrants By Vincenzo Caponi
  13. International Migration in Ireland, 2009 By O'Connell, Philip J.; Joyce, Corona
  14. Origin differences in self-reported health among older migrants living in France By Nicolas Gérard Vaillant; François-Charles Wolff
  15. Selection Policy and Immigrants' Remittance Behaviour By Mahuteau, Stéphane; Piracha, Matloob; Tani, Massimiliano
  16. The wage gap between immigrant and native workers in Spain: an analysis using matched employer-employee data By Fernando Muñoz-Bullón; J. Ignacio García-Pérez; Manuela Prieto-Rodríguez
  17. A Theory of Migration as a Response to Occupational Stigma By Stark, Oded; Fan, C. Simon
  18. Labour Market Effects of Eastern European Migration in Wales By Sara Lemos
  19. Urban and Counterurban Migration: City and Countryside Push and Pull, the Internet, and Spouses By Burke, Sandy C.; Edelman, Mark
  20. Remittances in Asia: Implications for the Fight against Poverty and the Pursuit of Economic Growth By Vargas-Silva, Carlos; Jha, Shikha; Sugiyarto, Guntur
  21. Turkish Associations in Metropolitan Stockholm: Organizational Differentiation and Socio-Political Participation of Turkish Immigrants By Akis , Yasemin; Kalaylioglu, Mahir
  22. Labour Market Assimilation and Over Education: The Case of Immigrant Workers in Italy By Carlo Dell'Aringa; Laura Pagani
  23. Education, Institutions, Migration, Trade, and The Development of Talent By Dhimitri Qirjo
  24. Remittances and Investment By Bjuggren, Per-Olof; Dzansi, James; Shukur, Ghazi
  25. Immigration au Québec : Politiques et intégration au marché du travail By Brahim Boudarbat; Maude Boulet
  26. Returning to the Question of a Wage Premium for Returning Migrants By Barrett, Alan; Goggin, Jean
  27. Remittances and competitiveness: the case of the Philippines By Veronica Bayangos; Karel Jansen
  28. The Global Crisis and the Impact on Remittances to Developing Asia By Jha, Shikha; Sugiyarto, Guntur; Vargas-Silva, Carlos
  29. Going Home after Hurricane Katrina: Determinants of Return Migration and Changes in Affected Areas By Jeffrey A. Groen; Anne E. Polivka
  30. Identity, Inequality, and Happiness: Evidence from Urban China By Shiqing Jiang; Ming Lu; Hiroshi Sato
  31. Migration, violence and welfare programmes in rural Colombia By Alice Mesnard
  32. Remittances and Life Cycle Deficits in Latin America By Ricardo Bebczuk; Diego Battistón
  33. Die Arbeitsmarktintegration von Migrantinnen und Migranten in Österreich By Peter Huber
  34. Occupational segregation measures: A role for status By Coral del Río; Olga Alonso-Villar
  35. A Note on Remittances in El Salvador and Ecuador: An Analysis of Household Survey Data By Jessica Audrey Clayton; Thierry Warin
  36. The Petersberg Declaration By Zimmermann, Klaus F.; Burda, Michael C.; Konrad, Kai A.; Schneider, Friedrich; Schneider, Hilmar; von Hagen, Jürgen; Wagner, Gert G.
  37. Moving back home: insurance against labor market risk By Greg Kaplan

  1. By: Murat Kirdar (Middle East Technical University)
    Abstract: This paper examines how immigrants’ migration duration and saving decisions in the host country respond to the purchasing power parity (ppp) and the wage ratio between the host and source countries. It is shown that in theory immigrants may stay longer in the host country as a result of an increase in ppp, in particular those with a high willingness to substitute consumption intertemporally. However, the empirical results from immigrants in Germany reveal that optimal migration duration decreases in ppp. Holding individual immigrant characteristics constant, immigrants from poorer source countries have shorter migration duration than immigrants from wealthier source countries. The empirical results also reveal that saving rate increases in ppp.
    Keywords: International Migration, Immigrant Workers
    JEL: F22 J61
    Date: 2010–03
  2. By: Ziesemer, Thomas (UNU-MERIT, and Maastricht University)
    Abstract: We provide regressions for the net immigration flows of developing countries. We show that (i) savings finance emigration and worker remittances serve to make staying rather than migrating possible; (ii) lagged dependent migration flows have a negative sign in the presence of migration stock variables; (iii) stocks of migrants in six OECD countries and in the developing countries have non-linear effects. Some of the non-linear effects vanish if indicators for disasters, conflicts and political instability are taken into account.
    Keywords: migration, remittances, disasters, conflicts, political instability
    JEL: F22 O15
    Date: 2010
  3. By: Alexander M. Danzer (Royal Holloway, University of London, UK); Barbara Dietz (Osteuropa-Institut, Regensburg (Institut for East European Studies))
    Abstract: This paper investigates patterns and determinants of temporary labour migration in Armenia, Belarus, Georgia, Moldova and Ukraine after EU enlargement in 2004. Migration incidence, destination choices and migration determinants differ between poorer and better-off countries. Although broadly in line with general results from the migration literature, we observe some peculiarities like the high share of older migrants and a modest role of family obligations in the migration decision process. We find no indication of a brain drain related to temporary migration in sending regions as the educational background of migrants is rather low. Migration is used as household insurance against unemployment and is associated with lower incidence of poverty. This finding remains robust when attempting to reduce the potential omitted variable bias with an instrumental variable approach.
    Keywords: Temporary migration, welfare, Eastern Europe, cross-country study
    JEL: F22 J61 I31 P23
    Date: 2009–05
  4. By: Barbara Dietz (Osteuropa-Institut, Regensburg (Institut for East European Studies))
    Abstract: This paper explores migration movements and remittances patterns in Macedonia since independence and studies the migration policy challenges Macedonia will be likely to face after its entry into the EU. Concerning recent migration movements, considerable outflows from Macedonia are found as well as indications for a serious brain drain. Remittances to Macedonia–which are quite big–seem to constitute a relevant support for a number of households and can be expected to diminish the incidence of poverty. In the light of the EU accession process, the Macedonian government will have to introduce policies which enhance the opportunities of migration and remittances and reduce their risks.
    Keywords: Macedonia, migration, remittances
    JEL: F22 F24
    Date: 2010–02
  5. By: Michel Beine (University of Luxemburg and CES-Ifo); Frédéric Docquier (FNRS and IRES, Université Catholique de Louvain); Hillel Rapoport (Department of Economics, Bar-Ilan University, EQUIPPE (Universités de Lille), Université Catholique de Louvain, CReAM and CEPREMAP)
    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.
    Date: 2009–07
  6. By: Bollard, Albert; McKenzie, David; Morten, Melanie
    Abstract: Recorded remittances to Africa have grown dramatically over the past decade. Yet data limitations still mean relatively little is known about which migrants remit, how much they remit, and how their remitting behavior varies with gender, education, income levels, and duration abroad. This paper constructs the most comprehensive remittance database on immigrants in the OECD currently available, containing microdata on more than 12,000 African immigrants. Using this microdata the authors establish several basic facts about the remitting patterns of Africans, and then explore how key characteristics of policy interest relate to remittance behavior. Africans are found to remit twice as much on average as migrants from other developing countries, and those from poorer African countries are more likely to remit than those from richer African countries. Male migrants remit more than female migrants, particularly among those with a spouse remaining in the home country; more-educated migrants remit more than less educated migrants; and although the amount remitted increases with income earned, the gradient is quite flat over a large range of income. Finally, there is little evidence that the amount remitted decays with time spent abroad, with reductions in the likelihood of remitting offset by increases in the amount remitted conditional on remitting.
    Keywords: Population Policies,Remittances,Gender and Development,Debt Markets,International Migration
    Date: 2010–04–01
  7. By: Nil Demet Güngör (Atilim University); Aysit Tansel (Middle East Technical University and Institute for the Study of Labor (IZA))
    Abstract: The study estimates an empirical model of return intentions using a dataset compiled from an internet survey of Turkish professionals residing abroad. In the migration literature, wage differentials are often cited as an important factor explaining skilled migration. The findings of our study suggest, however, that non-pecuniary factors, such as the importance of family and social considerations, are also influential in the return or non-return decision of the highly educated. In addition, economic instability in Turkey, prior intensions to stay abroad and work experience in Turkey also increase non-return. Female respondents also appear less likely to return indicating a more selective migration process for females.
    Keywords: skilled migration, brain drain, return intentions, Turkey
    JEL: F20 F22
    Date: 2010
  8. By: Chiswick, Barry R. (University of Illinois at Chicago)
    Abstract: This paper analyzes what the author views as the current top ten myths and fallacies regarding immigration and immigration policy in the United States.
    Keywords: immigrants, immigration policy, myths, fallacies
    JEL: F22 J61
    Date: 2009–07
  9. By: Sauro Mocetti (Bank of Italy); Carmine Porello (Bank of Italy)
    Abstract: This paper investigates the relationship between native internal mobility and immigration in Italy, in order to gain a better understanding of the impact of immigration on local labour markets and to gauge the consequences for the socio-demographic composition of the local population. Native mobility is examined both with respect to residential displacements across regions and the demographic evolution of local labour markets. Endogeneity issues related to immigrant geographical distribution are addressed using proximity to “gateways” as the instrumental variable. We find that immigration is positively associated with inflows of highly-educated natives, suggesting the existence of potential complementarities. The impact is concentrated among young adults and is higher in more urbanized areas. We also find a displacement of low-educated natives; in particular, immigrant concentration in the northern regions has partially substituted the traditional South-North mobility of less-skilled natives.
    Keywords: Immigration, native mobility, distance
    JEL: J61 O15 R23
    Date: 2010–03
  10. By: Sarah Bridges; Simona Mateut (Department of Economics, The University of Sheffield Author-Person=pma543)
    Abstract: This paper examines opposition towards immigration in Europe. Although we find evidence that both economic and non-economic variables shape attitudes towards the arrival of immigrants, the relative importance of these factors depends crucially on the race/ethnicity of the arriving immigrants. We find that more exposure to immigrants reduces opposition towards the arrival of different race immigrants, while fears over labour market competition are more likely to shape attitudes towards the arrival of same race immigrants. Social welfare considerations are also important in determining attitudes towards further immigration, but mainly towards those of a different race.
    Keywords: Attitudes, Immigration, European Union
    JEL: F1 F22 J61
    Date: 2009–05
  11. By: Aïda Solé-Auró (RFA-IREA, University of Barcelona, Spain); Montserrat Guillén (RFA-IREA, University of Barcelona, Spain); Eileen M. Crimmins (Andrus Gerontology Center. University of Southern California)
    Abstract: Objective: This study examines health care utilization of immigrants relative to the native-born populations aged 50 years and older in eleven European countries. Methods. We analyzed data from the Survey of Health Aging and Retirement in Europe (SHARE) from 2004 for a sample of 27,444 individuals in 11 European countries. Negative Binomial regression was conducted to examine the difference in number of doctor visits, visits to General Practitioners (GPs), and hospital stays between immigrants and the native-born individuals. Results: We find evidence those immigrants above age 50 use health services on average more than the native-born populations with the same characteristics. Our models show immigrants have between 6% and 27% more expected visits to the doctor, GP or hospital stays when compared to native-born populations in a number of European countries. Discussion: Elderly immigrant populations might be using health services more intensively due to cultural reasons.
    Keywords: count data, physician services, immigration.
    Date: 2009–10
  12. By: Vincenzo Caponi (Department of Economics, Ryerson University, Toronto, Canada)
    Abstract: This paper presents an intergenerational self selection model of migration and education that is capable of explaining the evolution of earnings and education across three generations of immigrants. By structurally estimating the model it is possible to quantify the human capital level of Mexicans in light of the self-sacrifice made by the first generation of Mexican immigrants. The results suggest that there is a significant one time loss of human capital faced by immigrants upon migration that is not transmitted to their children. Also parents with larger amounts of human capital tend to migrate more and tend to choose to remain high school educated. However, given the better educational opportunities offered in the US, they migrate with the expectation of their children becoming college educated. Therefore, measures that rely on the earnings performance and educational attainment of immigrants underestimate the amount of human capital they bring into the host country.
    Keywords: International Migration; Mexico.
    JEL: F22 J24 J61
    Date: 2009–10
  13. By: O'Connell, Philip J.; Joyce, Corona
    Keywords: Ireland
    Date: 2010–04
  14. By: Nicolas Gérard Vaillant (LEM - Lille - Economie et Management - CNRS : UMR8179 - Université des Sciences et Technologies de Lille - Lille I - Fédération Universitaire et Polytechnique de Lille); François-Charles Wolff (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272)
    Abstract: Objectives: Little is known about the health status of older migrants living in Europe. Using detailed data collected in 2003, we investigate differences in health status by origin country within the older immigrant population living in France using a self-rated health measure. Study design: The database used in this research is the ‘Passage à la Retraite des Immigrés' survey, conducted from November 2002 to February 2003 on a sample of 6,211 migrants aged 45 to 70 and living in France at the time of survey. Methods: A difficulty with the self-rated outcome is that it may not be comparable between different origin groups, in particular because of cultural and linguistic differences. We thus estimate generalized ordered Probit models and construct for each respondent an indicator of health net of cross-cultural effects. Results: Male immigrants from Southern Africa and Asia and female immigrants from Northern Europe, Southern Africa and Asia are more likely to be in good health, while the health status is lower among immigrants from Eastern Europe living in France. Conclusion: The diversity in health status within the immigrant population is large in France. These results are helpful in order to target the more disadvantaged origin groups and to adjust the provision of health care.
    Date: 2010
  15. By: Mahuteau, Stéphane (Macquarie University, Sydney); Piracha, Matloob (University of Kent); Tani, Massimiliano (Macquarie University, Sydney)
    Abstract: This paper analyses the impact of a change in Australia's immigration policy, introduced in the mid-1990s, on migrants' remittance behaviour. More precisely, we compare the remittance behaviour of two cohorts who entered Australia before and after the policy change, which consists of stricter entry requirements. The results indicate that those who entered under more stringent conditions – the second cohort – have a lower probability to remit but, if remitting, they tend to remit, on average, a higher amount than those in the first cohort. We also find significant time and region effects. Contrary to some existing evidence, time spent in Australia positively affects the probability to remit while in terms of regional effects, South Asians remit the highest amount. We discuss intuitions for the results in the paper.
    Keywords: remittances, immigration, selection policy
    JEL: F22 F24 J61
    Date: 2010–04
  16. By: Fernando Muñoz-Bullón (Universidad Carlos III); J. Ignacio García-Pérez (Department of Economics, Universidad Pablo de Olavide, FEDEA & FCEA); Manuela Prieto-Rodríguez (Universidad Pablo de Olavide)
    Abstract: The fact that Spain has witnessed a sharp increase in the number of immigrants over the past decade has generated considerable interest, particularly as regards wages earned by immigrants in host industries. We analyze whether controlling for both observable and unobservable characteristics of employers —in addition to individual variables and the economic context— makes any difference as regards the debate regarding the existence of wage differences between immigrant and native workers in Spain. As we show, doing this considerably reduces (or even eliminates) the inequalities found in previous research, thereby questioning the results attained by previous studies on this issue.
    Keywords: Immigration, salaries, assimilation.
    JEL: J21 J11
    Date: 2010–04
  17. By: Stark, Oded (ZEF, University of Bonn); Fan, C. Simon (Department of Economics, Lingnan University, Tuen Mun, Hong Kong)
    Abstract: A theory is developed of labor migration that is prompted by a desire to avoid "social humiliation." In a general equilibrium framework it is shown that as long as migration can reduce humiliation sufficiently, migration will occur even between two identical economies. Migration increases the number of individuals who choose to perform degrading jobs and consequently, migration lowers the price of the good produced in the sector that is associated with low social status. Moreover, the greater an individual’s aversion to performing degrading jobs, the more likely it is that he will experience a welfare gain when the economy opens up.
    Keywords: Migration, social distance, occupational status, social exposure gains, general equilibrium,
    JEL: F22 J61 R23
    Date: 2010–01
  18. By: Sara Lemos
    Abstract: The enlargement of the European Union in May 2004 triggered a relatively large and rapid migration inflow into Wales which was concentrated into narrow areas and occupations. As this inflow was larger and faster than anticipated, it arguably corresponds more closely to an exogenous supply shock than most migration shocks studied in the literature. This helps to some extent to circumvent identification issues arising from simultaneity bias which usually pose difficulties when estimating the effect of migration inflows on the labour market. We found little evidence that the inflow of accession migrants contributed to a fall in wages or a rise in claimant unemployment in Wales between 2004 and 2006. In particular, we found no evidence of an adverse impact on young, female or low-skilled claimant unemployment and no evidence of an adverse impact on the wages of the low-paid. If anything, we found a positive effect on the wages of higher paid workers and some weak evidence of a potentially favourable impact on claimant unemployment.
    Keywords: Migration; Employment; wages; Central and Eastern Europe; UK; Wales.
    JEL: J22
    Date: 2010–01
  19. By: Burke, Sandy C.; Edelman, Mark
    Abstract: The research reported in this paper directly compares and contrasts urban and counterurban migrants to assess economic, social, and counterurban models of migration. The research utilizes a unique study that not only located recent in-migrants but also located and surveyed out-migrants who had left the same areas thus allowing a direct comparison of two opposing migration streams. The findings show that the city and the countryside each have push and pull factors that influence migration decisions. The counterurban model is supported for nonmetro bound movers as they seek less congestion and the related aspects of a simpler pace of life, less crime, a pleasant environment, and lower housing costs. In addition to the recognized metropolitan pull factors of employment and income, this analysis shows that social relationships, entertainment amenities, and technological capabilities have important roles to play in migration decisions into metropolitan areas. These were additional factors that differentiated metro bound migrants from those going in the nonmetro direction and may become even more important in the future as technological innovations increase. There clearly are economic, family, community, and amenity factors at work in migration decisions. This research shows support for economic models in migration decisions and social ties also were reasons for moving. Our research found, however, that the most significant factors differentiating nonmetro movers from those who were metropolitan bound was in the areas of amenities and lifestyle. Nonmetropolitan migrants were seeking a counterurban lifestyle and metropolitan migrants were attracted by city amenities and activities.
    Date: 2009–01–01
  20. By: Vargas-Silva, Carlos (International Migration Institute); Jha, Shikha (Asian Development Bank); Sugiyarto, Guntur (Asian Development Bank)
    Abstract: This study examines the potential of remittances for promoting economic growth and reducing poverty in Asian countries using data for more than 20 countries in the region for 1988–2007. The results indicate that remittances positively affect home country real gross domestic product (GDP) per capita growth. A 10% increase in remittances as a share of GDP leads to a 0.9–1.2% increase in GDP growth. The findings also show that remittances only have a negligible effect on the overall poverty rate, but they tend to decrease the poverty gap and thereby ameliorate the depth of poverty. The estimates suggest that a 10% increase in remittances decreases the poverty gap by about 0.7–1.4%. The paper also explores the robustness of the key results by using 5-year average data and addresses potential endogeneity issues through instrumental variable estimation.
    Keywords: Migration; Remittances; Poverty; Economic Growth; Impacts
    Date: 2009–12
  21. By: Akis , Yasemin (Stockholm University Linnaeus Center for Integration Studies - SULCIS); Kalaylioglu, Mahir (Stockholm University Linnaeus Center for Integration Studies - SULCIS)
    Abstract: Since 1970s when multiculturalism was accepted as the official integration policy, Sweden encourages immigrants to organize themselves along ethnic lines and ethnic migrant organizations are considered as one of the channels for immigrants’ social and political participation to the Swedish society. Today Turks are among those immigration groups in Sweden with the widest network of association, with regard to quantitative indicators such as the number of associations and members. This study aims to explore the general characteristics of the Turkish migrant associations in Stockholm and associational differentiation process which continues since the beginning of 1990s. Through these two main lines, we also aim to find out to what extent national and local Turkish associations function as the channels of political and social participation for Turkish migrants. The results of the study reveal that national federations (including also that of women and youth) are close to act as a spokesman or a pressure group for their constituency, however, local associations do not assume a particular role in the social and political participation of Turkish migrants. Yet, as a whole, they face serious problems such as financial difficulties and the absence of active members. Moreover, it is also emphasized in the study that, in explaining these problems and the decline of associational activities among migrants, special attention is also to be given to the Swedish state, which has always assumed an active role in the development of migrant associations in Sweden through certain mechanisms.
    Keywords: migrant associations; Turkish migrants; socio-political participation; organizational differentiation; Sweden
    JEL: Y80 Z19
    Date: 2010–04–06
  22. By: Carlo Dell'Aringa (DISCE, Università Cattolica); Laura Pagani (Università Milano Bicocca)
    Abstract: In this paper we study the assimilation of immigrants into the Italian labour market using over-education as an indicator of labour market performance. The main objective is to assess the extent to which work experience in the host country’s labour market favours the international transferability of immigrants’ human capital. Using data from the Istat Labour Force Survey for the years 2005-2007, we find that foreigners are much more likely to be over-educated than natives upon their arrival in Italy and that work experience gained in the country of origin is not valued in the Italian labour market. Moreover, we find that not even experience acquired in Italy is helpful in improving immigrants’ educational job matches, suggesting that catch-up by foreigners seems unachievable, even after they adapt their skills to the host country labour market.
    Keywords: Assimilation, Over education
    JEL: F22 J24 J61
    Date: 2010–01
  23. By: Dhimitri Qirjo (Department of Economics, Florida International University)
    Abstract: This paper proposes a theory of free movement of goods and labor between two large economies with imperfect labor contracts. Each country is incompletely specialized in producing two final goods that differ in their complexity of production. The most complex good is produced by workers and managers who pair up with each other according to an efficient matching process, where the most talented manager matches with the most talented worker. The least complex good is produced by firms that consist of one individual. The most talented individual is defined as the one with the highest level of optimal job training. The heart of our analysis lies in the determinants of talent development. We show that in a world economy with two otherwise similar countries that have different institutional quality, or/and a different system of early education, a country that has the best quality of institution, combined with the best early educational system, will be the host country of immigrants. Under free trade and labor, the best institutions and the best early educational system can serve as complementary sources of comparative advantage in the most complex industries. Consequently, the host country of immigrants will export the most complex goods produced by the most talented individuals. The economic progress of a source country will be shown to be related to its ability to improve its quality of institutions and its early educational system. It also is shown that individuals’ decisions to emigrate are related to the fixed costs of migration, such as language barriers. Finally, emigration affects the income of both countries via an indirect effect on individuals’ incentives to invest in their job training and a direct effect on prices of goods.
    Keywords: Comparative advantage, Occupational Choice, Education, Institutions, Immigration, Moral hazard, Organization of production
    JEL: B52 I21 F10 F16 F22 J24
    Date: 2010–03
  24. By: Bjuggren, Per-Olof (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Dzansi, James (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Shukur, Ghazi (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper studies the impact of remittances on investment. Workers’ remittances to developing countries have grown to be an important source of financing, amounting to around $300 billion a year. The funds are used for both consumption and investment in the home countries of the migrants. The importance of financial and institutional framework in the receiving countries and how they interact with remittances is stressed. Data on remittance flow to 79 developing countries during 1995-2005 is used. Dynamic panel data approach is applied for this purpose. The results reveal that remittances, high quality institutional framework and well developed credit market increase investment. However, it is also found that the marginal importance of remittances as a financial source for investment decreases with improved institutional framework and a more developed credit market.
    Keywords: Remittances; Investment; Institutions; Financial Development; Dynamic Panel Data
    JEL: C23 E22 F24 G21 I38 O16 O17
    Date: 2010–02–11
  25. By: Brahim Boudarbat; Maude Boulet
    Abstract: <P><b>Contexte</b><br> À cause du vieillissement de sa population, le Québec fait face à une diminution imminente et rapide de son nombre de travailleurs disponibles sur le marché de l’emploi. S’il souhaite que les nouveaux arrivants au Québec participent pleinement à lutter contre cette diminution appréhendée, le gouvernement québécois devrait favoriser une meilleure intégration des immigrants au marché du travail. Les réformes successives survenues depuis le milieu des années 1990 ont fait en sorte que les nouveaux arrivants au Québec sont plus scolarisés, font partie de la tranche d’âge la plus active sur le marché de l’emploi et ils maîtrisent mieux le français. Pourtant, ils peinent plus à s’intégrer au marché de l’emploi que les immigrants qui vivent dans les autres provinces canadiennes. Cette situation survient malgré l’implication importante du Québec dans les politiques d’immigration. Le rapport de recherche « Immigration au Québec : Politiques et intégration au marché du travail » tend à montrer que les modifications aux règles d’immigration au Québec ont donc eu l’impact désiré, mais l’intégration des immigrants au marché de l’emploi laisse à désirer.
    Date: 2010–04–01
  26. By: Barrett, Alan; Goggin, Jean
    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: Ireland/US
    Date: 2010–02
  27. By: Veronica Bayangos; Karel Jansen
    Abstract: The paper looks at the impact of workers’ remittances on the competitiveness of the receiving economy. It extends existing research that concentrated on the exchange rate effects of remittances, the so-called Dutch disease effect, by adding labour market effects. The results show that the labour market effects of emigration and remittances have a significant impact on competitiveness that goes beyond the traditional exchange rate effect.
    Keywords: remittances, Dutch disease, competitiveness, exchange rate, monetary policy, Philippines
    Date: 2010
  28. By: Jha, Shikha (Asian Development Bank); Sugiyarto, Guntur (Asian Development Bank); Vargas-Silva, Carlos (International Migration Institute)
    Abstract: Remittances to Asia plunged during the 1997 Asian financial crisis, but the drop was temporary as the flows were increasing once again after just 1 year. The current crisis, however, is fundamentally different in that even the countries that send remittances have been adversely affected. The global nature of this crisis raises several questions such as whether it will also last for a short time or developing Asia should prepare for a long period of remittance stagnation. This study examines remittances data to several Asian countries to shed light on such issues. The results suggest that while remittance flows to key recipients in the region have slowed down in the current year, there has not been a sharp drop. Furthermore, there is no indication that the remittance flows will slow down further, suggesting that the flows should be back on a higher growth path in a few years. It is unlikely, however, to see the same growth rates of the past, given that an important share of that growth during the last two decades was due to better recording of remittances and an increased use of wire transfers on the part of migrants.
    Keywords: Global Crisis; Remittances; Asia
    Date: 2009–12
  29. By: Jeffrey A. Groen (U.S. Bureau of Labor Statistics); Anne E. Polivka (U.S. Bureau of Labor Statistics)
    Abstract: This paper examines the decision of Hurricane Katrina evacuees to return to their pre- Katrina areas and documents how the composition of the Katrina-affected region changed over time. Using data from the Current Population Survey, we show that an evacuee’s age and the severity of damage in an evacuee’s county of origin are important determinants of whether an evacuee returned during the first year after the storm. Blacks were less likely to return than whites, but this difference is primarily related to the geographical pattern of storm damage rather than to race per se. The difference between the composition of evacuees who returned and the composition of evacuees who did not return is the primary force behind changes in the composition of the affected areas in the first two years after the storm. Katrina is associated with substantial shifts in the racial composition of the affected areas (namely a decrease in the percentage of residents who are black) and an increasing presence of Hispanics. Katrina is also associated with an increase in the percentage of older residents, a decrease in the percentage of residents with low income/education, and an increase in the percentage of residents with high income/education.
    Keywords: Hurricane Katrina; Geographic Mobility; Return Migration; Disasters
    JEL: J61 Q54
    Date: 2009–09
  30. By: Shiqing Jiang; Ming Lu; Hiroshi Sato
    Abstract: This paper presents the impact of income inequality on the subjective wellbeing of three different social groups in urban China. We classify urban social groups according to their hukou status: rural migrants, gbornh urban residents, and gacquiredh urban residents who had changed their hukou identity from rural to urban. We focus on how the income disparity between migrants and urban residents affects individual happiness. The main results are as follows. People feel unhappy if inequality is related to their hukou identity, irrespective of whether they are urban residents with or without hukou. However, when identity-related inequality and other individual- and city-level characteristics are controlled, inequality measured by city-level Gini increases happiness. We also find that among urban residents who own hukou, mostly the gacquiredh urban residents are unhappy with hukou-related inequality. This implies that identity is formed by both policy and personal experience. gBornh urban residents have lower happiness scores when they are old. Communist Party members strongly dislike the identity-related inequality.
    Keywords: Inequality, Hukou identity, Happiness, Migration, Social integration
    JEL: I31 O15 R23
    Date: 2010–03
  31. By: Alice Mesnard (Institute for Fiscal Studies)
    Abstract: <p>This paper studies migration decisions of very poor households in an environment with a high level of violence. By matching detailed retrospective data on violence levels in Colombian rural municipalities with a household survey collected for the evaluation of the "Familias en Acción" welfare programme, the empirical analysis takes into account possible selection problems of the sample and the key issue of endogeneity of violence. The main results show that high levels of violence encourage households to leave their municipality of residence but that welfare programmes may mitigate these flows, provided that the incidence of violence is not unduly high. This is consistent with the fact that the households under study are liquidity constrained: when violence is high, cash transfers may enable them to leave their municipality of residence, whereas, in more normal circumstances, receiving cash transfers increases the benefits to stay where they are registered. Further evidence using household shocks and wealth confirm that liquidity constraints play a large role in explaining such heterogeneous impacts of the programme along violence levels. Other important determinants of migration are the type of property rights and the health insurance rural households can benefit from.</p></p></p>
    Keywords: migration, welfare programme, violence, displacement, Colombia
    Date: 2009–09
  32. By: Ricardo Bebczuk (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - Universidad Nacional de La Plata); Diego Battistón (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - Universidad Nacional de La Plata)
    Abstract: The paper investigates the effect of remittances on the coverage of financial deficits arising during youth and retirement years and their influence on some household behaviors. To this end, household survey information is used from Ecuador, Honduras, Mexico and Nicaragua to perform a number of econometric tests exploring the linkage between remittances and a battery of health, education and work outcomes dealing with young and elderly household members. The main overall finding is that, with variations across countries and regression specifications, remittances generally appear to exert a positive and robust impact. In particular, with few exceptions, remittances (a) respond to the lack of pensions and especially to overall household financial deficits; (b) encourage co-residence of the elderly with younger relatives; (c) facilitate elderly’s retirement; (d) increase household expenditures in health and education; (e) foster public and private school attendance, inhibits child labor, and improve anthropometric measures.
    Keywords: Latin America, remittances, life cycle, retirement
    Date: 2010–02
  33. By: Peter Huber (WIFO)
    Abstract: Dieser Beitrag bietet anhand der Ergebnisse des Ad-hoc-Moduls der Arbeitskräfteerhebung zur Arbeits- und Lebenssituation von Migrantinnen und Migranten im II. Quartal 2008 einen Überblick über die Arbeitsmarktlage der ersten und zweiten Generation und der im Ausland Geborenen in Österreich. Demnach zeigen sich erhebliche Unterschiede zwischen der ersten und zweiten Generation, zwischen Männern und Frauen, zwischen Personen, die ursprünglich als Asylantinnen bzw. Asylanten zuwanderten und anderen Gruppen und zwischen im Ausland Geborenen, deren formale Qualifikation in Österreich anerkannt wurde, und Personen, für die dies nicht der Fall ist. In den Schlussfolgerungen werden die aus diesen Ergebnissen ableitbaren Forschungsfragen diskutiert.
    Keywords: Migration, Integration, Erste Generation, zweite Generation
    Date: 2010–03–24
  34. By: Coral del Río (Universidade de Vigo); Olga Alonso-Villar (Universidade de Vigo)
    Abstract: This paper extends recent local segregation measures by incorporating status differences across occupations. These new measures are intended to be used to assess, from a normative point of view, the segregation of a target group. They seem appropriate to complement, rather than substitute, other measures by quantifying how things change when taking into account the status of occupations. The usefulness of these tools is shown in the case of occupational segregation of immigrants and natives in Spain.
    Keywords: Segregation measures, occupations, status.
    JEL: D63 J15 J16 J71
    Date: 2010
  35. By: Jessica Audrey Clayton; Thierry Warin
    Abstract: This study analyzes the impact of remittances as seen in household survey data from three small rural communities. OLS and multivariate anova regressions were used to analyze household survey data collected in Cumbe and Gualaceo (Ecuador) and in Ciudad Romero (El Salvador). The results contradict the findings of some studies concluding that in many countries remittances acted as “compensation for poor economic performance” rather than capital promoting economic development. <P>Ce papier a pour objectif de proposer une étude de cas sur l’impact des transferts de fonds individuels des émigrés vers leur village d’origine. L’étude repose sur des données collectées dans le cadre d’entretiens individuels réalisés dans trois villages : Cumbe et Gualaceo (Equateur) et Ciudad Romero (El Salvador). Les résultats contredisent, dans le cadre de ces villages, certaines études précédentes qui concluaient en l’absence d’impacts de long-terme des fonds transférés. En utilisant un modèle simple fondé sur la méthode des moindres carrés ordinaires complété par une analyse de variance multi-variée, cette étude montre un impact positif des transferts de fonds sur l’investissement, en plus d’être un soutien financier pour les produits de première nécessité.
    Keywords: remittances, Latin America, development, human capital, foreign aid , transferts de fonds, Amérique latine, développement économique, capital humain, aide internationale
    JEL: F22 F24 I32 R23 R51
    Date: 2010–03–01
  36. By: Zimmermann, Klaus F. (IZA, DIW Berlin and Bonn University); Burda, Michael C. (Humboldt University, Berlin); Konrad, Kai A. (Max Planck Institute for Intellectual Property, Competition and Tax Law); Schneider, Friedrich (University of Linz); Schneider, Hilmar (IZA); von Hagen, Jürgen (ZEI - Center for European Integration Studies); Wagner, Gert G. (DIW Berlin)
    Abstract: Against the background of the worldwide financial market and economic crisis, leading German economists urge policymakers to maintain the reform course in labor market policy. The experts warn not to jeopardize the clearly positive effects of the recent reform efforts. The "Petersberg Declaration" also proposes an economic orientation of German immigration legislation and an improvement of the market for social services, which has so far been dominated by voluntary work. Moreover, the welfare state should encourage risk-taking as a key factor for mobility, innovation, and growth.
    Keywords: labor market, workfare, education, immigration law, welfare state
    JEL: J20 J60
    Date: 2009–04
  37. By: Greg Kaplan
    Abstract: This paper uses an estimated structural model to argue that the option to move in and out of the parental home is an important insurance channel against labor market risk for youths who do not attend college. Using data from the NLSY97, I construct a new monthly panel of parent-youth coresidence outcomes and use it to document an empirical relationship between these movements and individual labor market events. The data is then used to estimate the parameters of a dynamic game between youths and their altruistic parents, featuring coresidence, labor supply and savings decisions. Parents can provide both monetary support through explicit financial transfers, and non-monetary support in the form of shared residence. To account for the data, two types of exogenous shocks are needed. Preference shocks are found to explain most of the cross-section of living arrangements, while labor market shocks account for individual movements in and out of the parental home. I use the model to show that coresidence is a valuable form of insurance, particularly for youths from poorer families. The option to live at home also helps to explain features of aggregate data for low-skilled young workers: their low savings rates and their relatively small consumption responses to labor market shocks. An important implication is that movements in and out of home can reduce the consumption smoothing benefits of social insurance programs.
    Date: 2010

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