nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2010‒10‒30
fourteen papers chosen by
Yuji Tamura
Australian National University

  3. Bend It Like Beckham: Ethnic Identity and Integration By Bisin, Alberto; Patacchini, Eleonora; Verdier, Thierry; Zenou, Yves
  4. Neighbourhood Choice and Neighbourhood Reproduction By Bergström, Lina; van Ham, Maarten; Manley, David
  5. Network Dependency in Migration Flows – A Space-time Analysis for Germany since Re-unification By Timo Mitze
  6. Immigrant Networks and U.S. Bilateral Trade: The Role of Immigrant Income By Mundra, Kusum
  7. Intergenerational Returns to Migration?:Comparing educational performance on both sides of the German border By Luthra R
  8. A primer of international migration: The Latin American experience and a proposal for a research agenda By Garcia, Pablo M; Rodriguez-Montemayor, Eduardo
  9. The International Mobility of Talent and its Impact on Global Development By Andrés Solimano
  10. Natural Experiment Evidence on the Effect of Migration on Blood Pressure and Hypertension By Gibson, John; Stillman, Steven; McKenzie, David; Rohorua, Halahingano
  11. Immigration, offshoring and American jobs By Gianmarco I.P. Ottaviano; Giovanni Peri; Greg C. Wright
  12. Limits to Growth: Tourism and Regional Labor Migration By Denise Eby Konan
  13. Language knowledge and earnings in Catalonia By Antonio Di Paolo; Josep Lluís Raymond
  14. Examining the Gender, Ethnicity, and Age Dimensions of the Healthy Immigrant Effect: Implications for Health Care Policy By Karen M. Kobayashi; Steven G. Prus

  1. By: Judith K. Hellerstein (Department of Economics and MPRC,University of Maryland); Melissa P. McInerney (Department of Economics, College of William and Mary); David Neumark (Department of Economics, UCI, NBER, and IZA)
    Abstract: We specify and implement a test for the presence and importance of labor market network based on residential proximity in determining the establishments at which people work. Using matched employeremployee data at the establishment level, we measure the importance of these network effects for groups broken out by race, ethnicity, and various measures of skill. The evidence indicates that these types of labor market networks do exist and play an important role in determining the establishments where workers work, that they are more important for minorities and the less-skilled, especially among Hispanics, and that these networks appear to be race-based.
    Date: 2010–10–18
  2. By: Judith K. Hellerstein (Department of Economics and MPRC,University of Maryland); Melissa P. McInerney (Department of Economics, College of William and Mary); David Neumark (Department of Economics, UCI, NBER, and IZA)
    Abstract: We study the relationship between Hispanic employment and location-specific measures of the distribution of jobs. We find that it is only the local density of jobs held by Hispanics that matters for Hispanic employment, that measures of local job density defined for Hispanic poor English speakers or immigrants are more important, and that the density of jobs held by Hispanic poor English speakers are most important for the employment of these less-skilled Hispanics than for other Hispanics. This evidence is consistent with labor market networks being an important influence on the employment of less-skilled Hispanics, as is evidence from other sources. We also find that in MSAs where the growth rates of the Hispanic immigrant population have been highest, which are also MSAs with historically low Hispanic populations, localized job density for low-skilled jobs is even more important for Hispanic employment than in the full sample. We interpret this evidence as consistent with the importance of labor market networks, as strong labor market networks are likely to have been especially important in inducing Hispanics to migrate, and because of these networks employment in these “new immigrant” cities is especially strongly tied to the local availability of jobs.
    Keywords: spatial mismatch, networks, immigration, Hispanics
    JEL: J15 J61 R23
    Date: 2010–10–18
  3. By: Bisin, Alberto (New York University); Patacchini, Eleonora (Sapienza University of Rome); Verdier, Thierry (Paris School of Economics); Zenou, Yves (Stockholm University)
    Abstract: We propose a theoretical framework to study the determinants of ethnic and religious identity along two distinct motivational processes which have been proposed in the social sciences: cultural conformity and cultural distinction. Under cultural conformity, ethnic identity is reduced by neighborhood integration, which weakens group loyalties and prejudices. On the contrary, under cultural distinction, ethnic minorities are more motivated in retaining their own distinctive cultural heritage the more integrated are the neighborhoods where they reside and work. Data on ethnic preferences and attitudes provided by the Fourth National Survey of Ethnic Minorities in the UK enables us to test the relative significance of these two identity processes. We find evidence consistent with intense ethnic and religious identity mostly formed as a cultural distinction mechanism. Consistently, we document that ethnic identities are more intense in mixed than in segregated neighborhoods.
    Keywords: ethnicity, identity, intermarriage, cultural transmission
    JEL: A14 J15
    Date: 2010–10
  4. By: Bergström, Lina (Uppsala University); van Ham, Maarten (University of St. Andrews); Manley, David (University of St. Andrews)
    Abstract: Although we know a lot about why households choose certain dwellings, we know relatively little about the mechanisms behind neighbourhood choice. Most studies of neighbourhood choice only focus on one or two dimensions of neighbourhoods: typically poverty and ethnicity. This paper argues that neighbourhoods have multiple dimensions and that models of neighbourhood choice should take these dimensions into account. We propose the use of a conditional logit model. From this approach we can gain insight into the interaction between individual and neighbourhood characteristics which lead to the choice of a particular neighbourhood over alternative destinations. We use Swedish register data to model neighbourhood choice for all households which moved to a neighbourhood in the city of Uppsala between 1997 and 2006. Our results show that neighbourhood sorting is a highly structured process where households are very likely to choose neighbourhoods where the neighbourhood population matches their own characteristics.
    Keywords: neighbourhood, housing choice, sorting, residential mobility, conditional logit, Sweden
    JEL: I30 J60 R23
    Date: 2010–10
  5. By: Timo Mitze
    Abstract: The contribution of this paper is to analyse the role of network interdependencies in a dynamic panel data model for German internal migration fl ows since re-unification. So far, a capacious account of spatial patterns in German migration data is still missing in the empirical literature. In the context of this paper, network dependencies are associated with correlations of migration flows strictly attributable to proximate flows in geographic space. Using the neoclassical migration model, we start from its aspatial specification and show by means of residual testing that network dependency eff ects are highly present. We then construct spatial weighting matrices for our system of interregional flow data and apply spatial regression techniques to properly handle the underlying space-time interrelations. Besides spatial extensions to the Blundell-Bond (1998) system GMM estimator in form of the commonly known spatial lag and unconstrained spatial Durbin model, we also apply system GMM to spatially filtered variables. Finally, combining both approaches to a mixed spatial filteringregression specification shows a remarkably good performance in terms of capturing spatial dependence in our migration equation and at the same time qualify the model to pass essential IV diagnostic tests. The basic message for future research is that space-time dynamics is highly relevant for modelling German internal migration flows.
    Keywords: Internal migration, dynamic panel data; Spatial Durbin Model; GMM
    JEL: R23 C31 C33
    Date: 2010–09
  6. By: Mundra, Kusum (Rutgers University)
    Abstract: This paper examines the role of immigrant networks on trade, particularly through the demand effect. First, we examine the effect of immigration on trade when the immigrants consume more of the goods that are abundant in their home country than the natives in a standard Heckscher-Ohlin model and find that the effect of immigration on trade is a priori indeterminate. Our econometric gravity model consists of 63 major trading and immigrant sending countries for the U.S. over 1991-2000. We find that the immigrants' income, mostly through the demand effect, has a significant negative effect on U.S. imports. However, if we include the effect of the immigrant income interacted with the size of the immigrant network, measured by the immigrant stock, we find that the higher the immigrant income the lower is the immigrant network effect for both U.S. exports and imports. This we find in addition to the immigrant stock elasticity of 0.27% for U.S. exports and 0.48% for U.S. imports. Capturing the immigrant assimilation with the level of immigrant income, this paper finds that the immigrant network effect on trade flows is weakened by the increasing level of immigrant assimilation.
    Keywords: immigrant networks, immigrant assimilation, demand effect, trade
    JEL: F22 F11 J10
    Date: 2010–10
  7. By: Luthra R (Institute for Social and Economic Research)
    Abstract: This paper compares the educational performance of the children of immigrants to the children in their parentsÂ’ home countries. I utilize the 2003 and 2006 PISA internationally standardized test scores for Italian, Polish, Turkish, former Yugoslavian, and former Soviet origin youth attending school in Germany, as well as youth attending school in the origin countries. Controlling for family background, I find that the children of immigrants in Germany perform better than peers in every origin country with the exception of Italy. Checks for selection bias suggest that positive selection may account for some, but not all, of this immigrant advantage.
    Date: 2010–10–22
  8. By: Garcia, Pablo M; Rodriguez-Montemayor, Eduardo
    Abstract: Although the phenomenon of international migration has been around for a while, in the last decades there has been a world-wide resurgence of it, which is larger in scale, wider is scope and is frequently accompanied by large flows of monetary remittances. These tendencies have revived the debate in the academic and policy spheres over their potential social and economic consequences. In this paper we develop a ‘Primer’ that presents the ‘state of the art’ in the study of international migration and make special emphasis on how the Latin American experience fits in it. We first present an overview of migration patterns in the region and highlight the importance of the United States as the prime destination for Latin American migrants. We then develop the core of the paper which reviews the different theories that have been proposed in the academic literature for explaining both the determinants of migration and its potential impacts, particularly from the perspective of the source country. In the process, we accentuate the central role played by international remittances. Finally, based on the current knowledge frontier in the subject, we propose a research agenda in order to fill some of the current shortages in the analysis of migration in the region.
    Keywords: Migration; Remittances; Latin America
    JEL: F22 O15 F24
    Date: 2010–07–09
  9. By: Andrés Solimano
    Abstract: Human talent is a key economic resource and a source of creative power in science, technology, business, arts and culture and other activities. Talent has a large economic value and its mobility has increased with globalization, the spread of new information technologies and lower transportation costs. Well educated and/or talented people are often more internationally mobile than unskilled workers. Immigrants with high human capital face more favourable immigrantion policies in receiving countries, typically high per capita income economies short of information technology experts, scientists, medical doctors and other types of talent. The purpose of this paper is to review analytical and policy issues related to the international mobility of talented individuals, examining the main types of talent who move internationally, their specific traits and characteristics and the implications of this mobility for source and destination countries and for global development. [Discussion Paper No. 2006/08]
    Keywords: international migration, international mobility, human resources, human talent
    Date: 2010
  10. By: Gibson, John (University of Waikato); Stillman, Steven (Motu Economic and Public Policy Research Trust); McKenzie, David (World Bank); Rohorua, Halahingano (University of Waikato)
    Abstract: Over 200 million people live outside their country of birth and experience large gains in material well-being by moving to where wages are higher. But the effect of this migration on health is less clear and existing evidence is ambiguous because of the potential for self-selection bias. In this paper, we use a natural experiment, comparing successful and unsuccessful applicants to a migration lottery to experimentally estimate the impact of migration on measured blood pressure and hypertension. Hypertension is a leading global health problem, as well as being an important health measure that responds quickly to migration. We use various econometric estimators to form bounds on the treatment effects since there appears to be selective non-compliance in the natural experiment. Even with these bounds the results suggest significant and persistent increases in blood pressure and hypertension, which have implications for future health budgets given the recent worldwide increases in immigration.
    Keywords: blood pressure, hypertension, lottery, migration, natural experiment
    JEL: C21 I12 J61
    Date: 2010–10
  11. By: Gianmarco I.P. Ottaviano (Universita’ Bocconi, Department of Economics; CEPR; Fondazione Eni Enrico Mattei (FEEM); Centro Studi Luca d’Agliano (LdA)); Giovanni Peri (University of California, Davis - Department of Economics; NBER; Centro Studi Luca d’Agliano (LdA)); Greg C. Wright (University of California, Davis - Department of Economics)
    Abstract: How many "American jobs" have U.S.-born workers lost due to immigration and offshoring? Or, alternatively, is it possible that immigration and offshoring, by promoting cost-savings and enhanced efficiency in firms, have spurred the creation of jobs for U.S. natives? We consider a multi-sector version of the Grossman and Rossi-Hansberg (2008) model with a continuum of tasks in each sector and we augment it to include immigrants with heterogeneous productivity in tasks. We use this model to jointly analyze the impact of a reduction in the costs of offshoring and of the costs of immigrating to the U.S. The model predicts that while cheaper offshoring reduces the share of natives among less skilled workers, cheaper immigration does not, but rather reduces the share of offshored jobs instead. Moreover, since both phenomena have a positive "cost-savings" effect they may leave unaffected, or even increase, total native employment of less skilled workers. Our model also predicts that offshoring will push natives toward jobs that are more intensive in communication-interactive skills and away from those that are manual and routine intensive. We test the predictions of the model on data for 58 U.S. manufacturing industries over the period 2000-2007 and find evidence in favor of a positive productivity effect such that immigration has a positive net effect on native employment while offshoring has no effect on it. We also find some evidence that offshoring has pushed natives toward more communication-intensive tasks while it has pushed immigrants away from them.
    Keywords: Employment, production tasks, immigrants, offshoring
    JEL: F22 F23 J24 J61
    Date: 2010–10
  12. By: Denise Eby Konan (Department of Economics, University of Hawaii Research Organization, Center for Sustainable Coastal Tourism)
    Abstract: The paper provides a methodology for considering the carrying capacity and limits to growth of a labor-constrained mature tourism destination. A computable general equilibrium model is used to examine the impacts of visitor expenditure growth and labor migration on HawaiÔiÕs economy. Impacts on regional income, welfare, prices, sector-level output, and gross state product are considered under alternative migration scenarios. Labor market constraints impose limits to growth in real visitor expenditures. Labor market growth with constrained visitor demand generates falling per capita household welfare.
    Keywords: Computable general equilibrium model, tourism, migration, Hawaii
    JEL: R13 D58 O15 L83
    Date: 2010–06
  13. By: Antonio Di Paolo (Departament d'Economia Aplicada, Universitat Autònoma de Barcelona (UAB); Campus de Bellaterra, Edifici B 08193 Bellaterra (Cerdanyola), Spain. Institut d’Economia de Barcelona, Universitat de Barcelona.); Josep Lluís Raymond (Departament de Fonaments de l’Anàlisi Econòmic, Universitat Autònoma de Barcelona (Spain). Institut d’Economia de Barcelona, Universitat de Barcelona.)
    Abstract: This paper investigates the economic value of Catalan knowledge for national and foreign first- and second-generation immigrants in Catalonia. Specifically, drawing on data from the “Survey on Living Conditions and Habits of the Catalan Population (2006)”, we want to quantify the expected earnings differential between individuals who are proficient in Catalan and those who are not, taking into account the potential endogeneity between knowledge of Catalan and earnings. The results indicate the existence of a positive return to knowledge of Catalan, with a 7.5% increase in earnings estimated by OLS; however, when we account for the presence of endogeneity, monthly earnings are around 18% higher for individuals who are able to speak and write Catalan. However, we also find that language and education are complementary inputs for generating earnings in Catalonia, given that knowledge of Catalan increases monthly earnings only for more educated individuals.
    Keywords: Language, Earnings, Immigrants, Endogeneity, Complementarity
    JEL: J79 J24 J61 C31
    Date: 2010–07
  14. By: Karen M. Kobayashi; Steven G. Prus
    Abstract: Using data from the 2005 Canadian Community Health Survey, the current study expands on previous research on the healthy immigrant effect (HIE) in adult populations by considering the effects of both immigrant and visible minority status on health for males and females in mid- (45- 64) and later life (65+). The findings indicate that the HIE applies to recent immigrant men in midlife; that is, new male immigrants – those who immigrated less than 10 years ago – have better health compared to their Canadian-born counterparts, and that the effect is particularly strong for visible minorities. The picture is similar for older women who have recently immigrated, however this advantage largely disappears when a number of socio-demographic, socio-economic, and lifestyle factors are controlled. For older men and middle-aged women of color, however, the reality is strikingly different: both groups report health disadvantages compared to their Canadian-born counterparts, with both recent and longer-term midlife women having poorer health. Findings are discussed in terms of their implications for health care policy for immigrant adults.
    Keywords: healthy immigrant effect, gender, ethnicity, mid-life, later life, health care policy
    JEL: I18
    Date: 2010–10

This nep-mig issue is ©2010 by Yuji Tamura. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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