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on Economics of Human Migration |
| By: | Randall K. Q. Akee |
| Abstract: | Existing research examining the self-selection of immigrants suffers from a lack of information on the immigrants’ labor force activities in the home country, quotas limiting who is allowed to enter the destination country, and non-economic factors such as internal civil strife in the home country. Using a novel data set from the Federated States of Micronesia (FSM), a migration flow to the U.S. has been analyzed that suffers from none of these problems. Second, nearest neighbor matching for immigrants has been conducted prior to their leaving the home country using home country wages as the outcome variable to determine the nature of selection on unobservable characteristics. [Discussion Paper No. 3268] |
| Keywords: | immigrants, home country, Federated States of Micronesia (FSM), U.S., high-skilled workers, endogeneity, wages |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2829&r=mig |
| By: | P. Bönisch; Lutz Schneider |
| Abstract: | Individuals’ preferences in transition regions are still shaped by the former communist system. We test this ‘Communism legacy’ hypothesis by examining the impact of acculturation in a communist regime on social network participation and, as a consequence, on preferences for spatial mobility. We focus on the paradigmatic case of East Germany where mobility intentions seem to be substantially weaker than in the western part. Applying an IV ordered probit approach we firstly find that East German people acculturated in a Communist system are more invested in locally bounded informal social capital than West Germans. Secondly, we confirm that membership in such locally bounded social networks reduces the intention to move away. Thirdly, after controlling for the social network effect the mobility gap between East and West substantially reduces. Low spatial mobility of the eastern population, we conclude, is to an important part attributable to a social capital endowment characteristic to post-communist economies. |
| Keywords: | regional mobility, social capital, East Germany |
| JEL: | J61 R23 C35 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:16-10&r=mig |
| By: | Olga Nottmeyer |
| Abstract: | Taking advantage of the panel structure of the data, the impact of intermarriage on labor market productivity as measured by earnings is examined. Contrarily to previous studies which rely on instrumental variable techniques, selection issues are addressed within a fixed effects framework. The model accounts for short and long term effects as well as general differences between those who intermarry and those who do not. Once unobserved heterogeneity is incorporated, advantageous effects from intermarriage vanish and do not differ from premiums from marriage between immigrants. However, immigrants who eventually intermarry receive greater returns to experience indicating better labor market integration. |
| Keywords: | intermarriage, integration, labor market, migration |
| JEL: | J1 J12 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp314&r=mig |
| By: | Simpson, Nicole B. (Department of Economics, Colgate University); Sparber, Chad (Department of Economics, Colgate University) |
| Abstract: | This paper uses a gravity model of migration to analyze how income differentials affect the flow of immigrants into U.S. states. We add to existing literature by decomposing income differentials into short- and long-term components and by focusing on newly arrived unskilled immigrants between 2000-2008. Our sample is unique in that 95 percent of our observed immigrant fl ows equal zero. The trade literature has advocated using the Eaton and Tamura (1994) threshold Tobit model in similar settings, and we are the first to apply the methodology to analyze the determinants of immigration. We find that recent U.S. immigrants positively respond to differences in long-term (or trend) GDP between origin countries and U.S. states. When appropriately accounting for the zero values, we also find that differences in GDP fluctuations significantly affect the fl ow of unskilled immigrants. In addition, we find that short-run GDP fl uctuations pull unskilled immigrants into certain U.S. states, whereas GDP levels push unskilled immigrants out of their countries of origin. |
| Keywords: | Immigration, Macroeconomics, GDP, Gravity |
| JEL: | F2 E01 J61 |
| Date: | 2010–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:cgt:wpaper:2010-06&r=mig |
| By: | Luca Marchiori (CREA, University of Luxembourg); Patrice Pieretti (CREA, University of Luxembourg); Benteng Zou (CREA, University of Luxembourg) |
| Abstract: | The focus of this article is on the impact of high-skilled emigration on fertility and human capital of a sending country within an overlapping generations model where parents choose to finance higher education to a certain number of their children. We assume that high- and low-skilled children emigrate with a certain probability when they reach adulthood and that they send remittances to their parents back home. The model shows that an increase in the intensity of the brain drain induces parents to provide more higher education to their children and to raise less low-skilled children. The impact on fertility and on human capital formation however remains unclear. This is why we run numerical simulations by calibrating our model to a developing country like the Philippines. The calibration results show in particular, that increased brain drain lowers fertility and boosts long-run human capital formation in the sending country. |
| Keywords: | Simulation method, migration, fertility |
| JEL: | C63 F22 J13 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:10-06&r=mig |
| By: | Asadul Islam; Jaai Parasnis; Dietrich Fausten |
| Abstract: | This paper examines whether the differences in the observed savings of immigrant and native households in Australia are related to underlying differences in observable characteristics of the two groups of households or to environmental factors. We use quantile regression and semi-parametric decomposition methods to identify the savings differential, and to isolate the factors that contribute to it. The basic finding is that while income can fully account for the observed difference in immigrant and native savings there are fundamental differences in the saving behaviour of the respective groups. Decomposition analysis suggests that the different characteristics of migrants and natives are responsible for the observed difference in savings. The results also indicate that immigrants have a tendency to save more than natives when compared to Australian-born households of similar characteristics. These findings are consistent with the observed disparities in the wealth holdings of immigrant and native-born households in Australia. |
| Keywords: | savings, immigrants, native-born, decomposition, Australia |
| JEL: | F22 J61 D10 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2010-27&r=mig |
| By: | Luthra R (Institute for Social and Economic Research) |
| Abstract: | Exploiting the 2005 Mikrozensus, the first dataset to allow the full disaggregation of different immigrant origin groups in Germany, this paper examines the effect of context of reception, citizenship, and intermarriage on the labor force participation, employment, and occupational status of the children of immigrants in Germany. Most second generation men have much higher unemployment than native Germans, even after controlling for human capital. Disadvantage is less pronounced among second generation women, and among the employed. There is considerable heterogeneity across immigrant origins, but citizenship and intermarriage have only modest impacts. |
| Date: | 2010–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2010-30&r=mig |
| By: | Cristian Bartolucci |
| Abstract: | Hellerstein and Neumark (1999) developed a straightforward method to detect wage discrimination using matched employer-employee data. In this paper a new method to measure wage discrimination is proposed, that builds on the ideas first developed by Hellerstein and Neumark. It has four main advantages: it is robust to labor market segregation, it does not impose linearity on the wage setting equation, it avoids the problematic estimation of production functions, and it is not only a test for discrimination but also produces measures of discrimination. Using matched employer-employee data from Germany, I find that immigrants are being discriminated against. They receive wages which are 13 percent lower than native workers in the same firm. |
| Keywords: | Labor market discrimination; immigration; matched employer-employee data |
| JEL: | J71 J64 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:cca:wpaper:150&r=mig |
| By: | Pfau, Wade Donald; Giang, Long Thanh |
| Abstract: | Our findings include that overseas remittances come from throughout the world, but are dominated by the United States as a main source. Also, over time, the destinations of foreign remittances are becoming more diverse as they move away from Ho Chi Minh city and other urban areas, in particular, to other regions and to rural areas. Nonetheless, the percentage of households receiving overseas remittances as held steady at around 5 to 7 percent of the population. Also, widows, the elderly, female headed households, and households where the head does not work disproportionately receive foreign remittances. This helps to ensure that foreign remittances actually improve equality in Vietnam with regard to per-capita household expenditures, though the improvements are quite small. Nonetheless, the improvements to income equality caused by overseas remittances are becoming more substantial over time. We also determine that overseas remittances are used primarily for consumption, and they are mainly provided by close family members including children, spouses, and siblings. |
| Keywords: | Vietnam; remittances; household surveys |
| JEL: | O19 O12 F24 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24945&r=mig |
| By: | van Praag, Bernard M. S. (University of Amsterdam); Romanov, Dmitri (Central Bureau of Statistics, Israel); Ferrer-i-Carbonell, Ada (IAE Barcelona (CSIC)) |
| Abstract: | We analyze individual satisfaction with life as a whole and satisfaction with the personal financial situation for Israeli citizens of Jewish and Arab descent. Our data set is the Israeli Social Survey (2006). We are especially interested in the impact of the religions Judaism, Islam and Christianity, where we are able to differentiate between individuals who vary in religiosity between secular and ultra-orthodox. We find a significant effect of religiosity on happiness. With respect to Jewish families it is most striking that the impact of family size on both life and financial satisfaction seems to vary with religiosity. This might be a reason for differentiation in family equivalence scales. For Arab families we did not find this effect. First-generation immigrants are less happy than second-generation immigrants, while there is no significant difference between second-generation families and native families. The effect of the Lebanon War is much less than expected. |
| Keywords: | happiness, subjective well-being, financial satisfaction, Israel, religion, immigration, terrorism |
| JEL: | H56 I31 N35 N45 R23 Z12 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5184&r=mig |
| By: | Michael M. Pichler (Institute of Mathematical Economics, Bielefeld University) |
| Abstract: | Based on the cultural formation of continuous preferences framework of Pichler (IMW Working Paper No. 431, 2010), this paper analyzes the evolution of preferences and behavior in a two cultural groups setting. We show that the qualitative dynamic properties depend crucially on what parents perceive as the optimal preferences for their children to adopt. Under inter– generationally fixed optimal preferences, the preferences of the cultural groups will always stay distinct. If the optimal preferences coincide with those derived from the representative group behavior, then a multitude of convergence path types can realize. These contain both an inter–generational assimilation process toward the same preference point, as well as inter–generational dissimilation. |
| Keywords: | Continuous Preferences, Assimilation, Cultural Groups, Endogenous Preferences, Preference Evolution, Socialization |
| JEL: | C72 J13 Z13 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:bie:wpaper:438&r=mig |
| By: | Wenshu Gao; Russell Smyth |
| Abstract: | China‟s rural-urban migrants have been the engine room that has driven China‟s high rate of economic growth; however, their living and working conditions are poor. This paper addresses the question: What keeps China‟s migrant workers going? We seek to answer this question through examining the determinants of the happiness of China‟s rural-urban migrants, drawing on a large-scale survey administered across 12 cities in 2005. We find that expectations as to future income is an important determinant of happiness. This suggests that many migrants expect their financial position and, by extension, their lives more generally to get better in the future and that this is having a positive effect on their current levels of happiness. The effect of optimistic expectations outstrips any realistic increase in own income. We find that for those who expect a big increase in income over the next five years, this translates to an increase in average monthly income of 380 per cent and for those who expect a small increase in income over the next five years this translates to an increase in average monthly income of 200 per cent to obtain an equivalent increase in happiness compared with those who expect no change in income. This finding has important implications for economic growth and socio-economic stability in China given that maintaining socio-economic stability is important to maintain China‟s high rate of economic growth and positive expectations about future income are important for maintaining socio-economic stability during times of economic transition. |
| JEL: | I32 O15 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2010-14&r=mig |
| By: | Banks, James (Institute for Fiscal Studies, London); Blundell, Richard (University College London); Oldfield, Zoë (Institute for Fiscal Studies, London); Smith, James P. (RAND) |
| Abstract: | This paper investigates the effects of housing price risk on housing choices over the life-cycle. Housing price risk can be substantial but, unlike other risky assets which people can avoid, the fact that most people will eventually own their home creates an insurance demand for housing assets early in life. Our contribution is to focus on the importance of home ownership and housing wealth as a hedge against future house price risk for individuals moving up the ladder – people living in places with higher housing price risk should own their first home at a younger age, should live in larger homes, and should be less likely to refinance. These predictions are tested and shown to hold using panel data from the United States and Great Britain. |
| Keywords: | downsizing, migration |
| JEL: | D12 D91 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5168&r=mig |
| By: | Banks, James (Institute for Fiscal Studies, London); Blundell, Richard (University College London); Oldfield, Zoë (Institute for Fiscal Studies, London); Smith, James P. (RAND) |
| Abstract: | This paper investigates the effects of housing price risk on housing choices over the life-cycle. Housing price risk can be substantial but, unlike other risky assets which people can avoid, the fact that most people will eventually own their home creates an insurance demand for housing assets early in life. Our contribution is to focus on the importance of home ownership and housing wealth as a hedge against future house price risk for individuals moving up the ladder – people living in places with higher housing price risk should own their first home at a younger age, should live in larger homes, and should be less likely to refinance. These predictions are tested and shown to hold using panel data from the United States and Great Britain. |
| Keywords: | downsizing, migration |
| JEL: | D12 D91 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5173&r=mig |
| By: | Lutz Schneider; Alexander Kubis; D. Wiest |
| Abstract: | In the public debate, the brain drain from East Germany is supposed to be the most critical trend regarding the development and catching-up of the New Länder. Therefore, potential for in- and re-migration has attracted much attention at least in the political context. Our contribution analyses the re-migration potential on the basis of data from a DFG research project focussing on the re-migration intentions of people formerly emigrated from Saxony-Anhalt. The analysis concentrates on the following aspects: the effect of job market success after emigration; the impact of social ties to the origin and the host region and on the selectivity of re-migration preferences. The econometric results confirm several expected effects: On the one hand an individual’s job market success reduces the intention to return. Likewise, the re-migration preference increases for people whose expectations were disappointed. On the other hand, the relevance of social ties to the origin region for re-migration dispositions is confirmed by the estimations. Yet, regarding selectivity of re-migration preferences in terms of human capital econometric results are somewhat ambiguous. |
| Keywords: | Return migration, regional convergence, East Germany |
| JEL: | J61 R23 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:17-10&r=mig |