nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2010‒12‒04
seventeen papers chosen by
Yuji Tamura
Australian National University

  1. Immigration and large banknotes By Fischer, Andreas M.
  2. Immigration and Swiss House Prices By Degen, Kathrin; Fischer, Andreas M.
  3. Empirical Methods in the Economics of International Immigration By Lozano, Fernando A.; Steinberger, Michael D.
  4. The Influence of Role Models on Immigrant Self-Employment: A Spatial Analysis for Switzerland By Giuliano Guerra; Roberto Patuelli
  5. The Impact of Skills on Remigration Flows By Peter Bönisch; Philipp Gaffert; Joachim Wilde
  6. Making sense of immigration policy: Argentina, 1870-1930 By Blanca Sánchez-Alonso
  7. Towards an Objective-Driven System of Smart Labor Migration Management By Holzmann, Robert; Pouget, Yann
  8. The interaction impact on attitudes – Native Swedes’ attitudes towards labor immigrants and guest workers after the hurricane Gudrun By Månsson, Jonas; Dahlander, Josefin
  9. Labour market inclusion and labour market exclusion among youth in Sweden: What role does immigrant background play? By Månsson, Jonas; Delander, Lennart
  10. Nonmetropolitan Outmigration Counties: Some Are Poor, Many Are Prosperous By McGranahan, David; Cromartie, John; Wojan, Timothy
  11. Peers, Neighborhoods and Immigrant Student Achievement - Evidence from a Placement Policy By Åslund, Olof; Edin, Per-Anders; Fredriksson, Peter; Grönqvist, Hans
  12. The International Circulation of Elites: Knowledge, Entrepreneurialand Political By Andrés Solimano; Diego Avanzini
  13. Migrant networks and foreign direct investment.. By Javorcik, Beata S.; Özden, Çağlar; Spatareanu, Mariana; Neagu, Cristina
  14. Do remittances boost economic development? Evidence from Mexican states By Pia M. Orrenius; Madeline Zavodny; Jesús Cañas; Roberto Coronado
  15. Remittances and Labor Supply in Post-Conflict Tajikistan By Patricia Justino; Olga Shemyakina
  16. Mobility sans integration? An analysis of labor market attainment in Sweden among its post-war immigrants from Estonia, Latvia, Lithuania and Poland By Månsson, Jonas; Olsson, Mikael
  17. International Migration and Foreign Trade: What connexion? (In French) By Stéphane BECUWE (GREThA UMR CNRS 5113); Fatma MABROUK (GREThA UMR CNRS 5113)

  1. By: Fischer, Andreas M. (Swiss National Bank)
    Abstract: Do immigrants have a higher demand for large denominated banknotes than natives? This micro study examines whether cash orders for CHF 1,000 notes, a banknote used for storage purposes, is concentrated in Swiss municipalities with a high foreign-to-native ratio. Controlling for a range of regional indicators across 251 Swiss municipalities, European immigrants in Switzerland are found to hoard less CHF 1,000 banknotes than natives. This result says that immigration reduces seigniorage (per person) as measured by currency orders. A 1% increase in the immigrant-to-native ratio is coincident with a reduction in currency orders by CHF 4,000. The dampening effect is attributed to specific traits linked to immigrants.
    Keywords: immigration; large banknotes; hoarding; money demand
    JEL: E41 E69
    Date: 2010–05–01
  2. By: Degen, Kathrin (Swiss National Bank); Fischer, Andreas M. (Swiss National Bank)
    Abstract: This study examines the behavior of Swiss house prices to immigration flows for 85 districts from 2001 to 2006. The results show that the nexus between immigration and house prices holds even in an environment of low house price inflation, nationwide rent control, and modest immigration flows. An immigration inflow equal to 1% of an area’s population is coincident with an increase in prices for single-family homes of about 2.7%: a result consistent with previous studies. The overall immigration effect for single-family houses captures almost two-thirds of the total price increase.
    Keywords: Immigration; Housing Prices
    JEL: F22 J61 R21
    Date: 2010–04–01
  3. By: Lozano, Fernando A. (Pomona College); Steinberger, Michael D. (Pomona College)
    Abstract: In this chapter we provide a brief overview of the main empirical tools used by economists to study international migration. We begin by exploring the three broad research areas that economists examine when researching immigration. We then explore the strengths and shortcomings of the standard methods, and highlight new methods that will likely become more common in future work in the field. We divide the most common tools used in the empirical literature into four broad categories: (1) Ordinary Least Squares and Inference, (2) Difference-in-Difference Estimation, (3) Instrumental Variables Techniques, and (4) Recent Developments and Distributional Estimators. We use recent empirical work to highlight and explain each method, and provide sources for researchers interested in further information on each topic.
    Keywords: empirical methods, immigration
    JEL: F22
    Date: 2010–11
  4. By: Giuliano Guerra (Institute for Economic Research (IRE), University of Lugano, Switzerland); Roberto Patuelli (Institute for Economic Research (IRE), University of Lugano, Switzerland; The Rimini Centre for Economic Analysis, Italy)
    Abstract: Theoretical and empirical research suggests a connection between the presence of role models and the emergence of entrepreneurs. Existing entrepreneurs may act as role models for self-employment candidates by providing successful examples. By explicitly considering the self-employment rates of the natives, which may influence locally the decisions of immigrants towards entrepreneurship, we develop a simple model that explains immigrant self-employment rates for a sample of 2,490 Swiss municipalities. In addition, we accommodate for the presence of spatial spillovers in the distribution of rates, and test a spatial autoregressive model which takes into account the average self-employment rates of immigrants living in nearby municipalities. Our evidence shows a significant (positive) effect of such spatial network effects, which are characterized by a quick distance decay, suggesting spatial spillovers at the household and social network level. Additionally, we show that local conditions and immigrant pool characteristics differ, with respect to self-employment choices, when examining separately urban and rural contexts.
    Keywords: immigrants, self-employment, role models, Switzerland, spatial lag
    JEL: C21 J24 J61 O15 R23
    Date: 2010–11
  5. By: Peter Bönisch; Philipp Gaffert; Joachim Wilde (University of Osnabrueck)
    Abstract: More than ten years after the seminal paper by Borjas and Bratsberg (1996) modeling the impact of skills on remigration the empirical evidence on that theory is still mixed. Our paper is to shed light on that issue. Using the GSOEP we test two hypotheses derived from Borjas and Bratsberg (1996) while allowing for endogeneity of host country specific capital. Our results give strong support for their theory. Additionally a sensitivity analysis shows that the insignificance of education in previous studies is due to the test design conducted and cannot be interpreted as falsification of Borjas’ and Bratsberg’s (1996) theory.
    Keywords: return migration, selective return migration
    JEL: J24 F22
    Date: 2010–03–15
  6. By: Blanca Sánchez-Alonso
    Abstract: The aim of this paper is to disentangle the different forces shaping Argentine immigration policy from 1870 to 1930. Although immigration restrictions increased over time Argentina remained relatively open to mass migration until the 1930s in contrast with the United States. The quantitative evidence presented here suggests that there were economic reasons to restrict immigration prior to the 1930s, namely rising inequality and a declining demand for workers. Labour in Argentina would have been better off with a more restrictive immigration policy since 1900. However, labour interests could not be translated into Parliament in a direct way as in countries with a wide electoral franchise and high political participation like the United States. In Argentina a large share of workers did not have the right to vote simply because they were foreigners. Those negatively affected by massive immigration developed alternative actions: general strikes, labour unrest and violence. Political and social fear finally pushed those who had more to gain from an abundant supply of labour to introduce immigration restrictions.
    Keywords: Immigration policy, Argentina, Political economy, International migration
    JEL: N4 N36 J61 O24
    Date: 2010–11
  7. By: Holzmann, Robert (World Bank); Pouget, Yann (World Bank)
    Abstract: This policy note offers motivation as well as game plan how to achieve a coherent and mutually beneficial labor migration system. It argues that migrant workers may importantly contribute to economic growth and development both in sending and receiving countries if they find the enabling conditions. To achieve a potential win-win-win situation requires (i) a sustainable migration management system that takes into account the interests of the various stakeholders involved; (ii) a clear identification and articulation of objectives and interests in migration by the key stakeholders based on a common conceptual framework on migration and development: (iii) regional and bilateral coordination mechanisms to balance these not necessarily converging objectives and reach comprise under labor agreements and policies; and (iv) evidence-based effective polices and public and private sector interventions to achieve the objectives that are known and applied at the level of sending, receiving, returning and circulation.
    Keywords: migration management, economic development, monitoring and evaluation
    JEL: F22 J1
    Date: 2010–11
  8. By: Månsson, Jonas (Centre for Labour Market Policy Research (CAFO)); Dahlander, Josefin (SIDA, Baltic Sea Unit)
    Abstract: We make use of a natural experiment, the hurricane ‘Gudrun’, and investigate the impact of human interaction on attitudes towards the labor market. Comparing attitudes between one group of Swedish forest owners that had interacted with guest workers, and one that had not, differences in attitudes towards guest workers is identified concerning the labor market performance and work moral. Those who had interacted have a more positive attitude than those who not interacted. The experimental setting makes it possible to claim that this observed difference in attitudes was an effect of interaction.
    Keywords: Attitudes; Interaction; Integration; Immigrant; Guest workers; Hurricane
    JEL: J15 J82
    Date: 2010–11–21
  9. By: Månsson, Jonas (Centre for Labour Market Policy Research (CAFO)); Delander, Lennart (Centre for Labour Market Policy Research (CAFO))
    Abstract: The aim of this article is to analyse the impact of human capital variables on the probability for young people of being included in and excluded from the labour market. Of special interest is to study the causal effects of having immigrant background, controlling for other individual characteristics such as age, sex, education, being breadwinner, parental income, and parental employment. The research questions are investigated by using data from Statistics Sweden on young people’s sources and levels of income. The population consists of 18–24 year olds in the county of Kronoberg in southern Sweden. The period covered by the study is 1997–2007. We estimate the impact of individual characteristics by means of both panel data analysis and cross-section analysis. We find that there is a strong association between not having completed compulsory school and being excluded from the labour market. When control-ling for other human capital variables we can not, however, argue that being immigrant or having immigrant parents considerably increases the probability of labour market exclusion. On the other hand, our results clearly testify that having foreign-born parents reduces the probability of being included in the labour market. It can be assumed that this is a consequence of young people with immigrant parents being disadvantaged compared to native youth as regards access to a social network that can be benefited from in the job search proc-ess. Thus, immigrant background chiefly is an obstacle to being included in the Swedish labour market and of less importance for the risk of labour market exclusion. In the respects mentioned here, the results of the panel data analysis corresponds qualitatively with those of the cross-section analysis.
    Keywords: Human capital; Immigration; Labour market inclusion;
    JEL: E24
    Date: 2010–11–21
  10. By: McGranahan, David; Cromartie, John; Wojan, Timothy
    Abstract: Population loss through net outmigration is endemic to many rural areas. Over a third of nonmetro counties lost at least 10 percent of their population through net outmigration over 1988-2008. Some of these counties have had very high poverty rates, substantial loss in manufacturing jobs, and high unemployment. Lack of economic opportunity was likely a major factor in their high outmigration. Most high net outmigration counties, however, are relatively prosperous, with low unemployment rates, low high school dropout rates, and average household incomes. For these counties, low population density and less appealing landscapes distinguish them from other nonmetro counties. Both types of outmigration counties stand out on two measures, indicating that quality-of-life factors inhibit inmigration: a lack of retirees moving in and local manufacturers citing the areaâs unattractiveness as a problem in recruiting managers and professionals.
    Keywords: Migration, net migration, rural development, life-cycle migration, population growth, nonmetropolitan, nonmetro, rural economy, metro, rural America, census data, population growth, demographics, ERS, USDA, Community/Rural/Urban Development,
    Date: 2010–11
  11. By: Åslund, Olof (Institute for Labour Market Policy Evaluation (IFAU), Uppsala University, IZA, and Uppsala Center for Labor Studies (UCLS).); Edin, Per-Anders (Uppsala University, IFAU, and UCLS.); Fredriksson, Peter (Stockholm University, IZA, and UCLS.); Grönqvist, Hans (Swedish Institute for Social Research (SOFI) Stockholm University.)
    Abstract: We examine to what extent immigrant school performance is affected by the characteristics of the neighborhoods that they grow up in. We address this issue using a refugee placement policy which provides exogenous variation in the initial place of residence in Sweden. The main result is that school performance is increasing in the number of highly educated adults sharing the subject’s ethnicity. A standard deviation increase in the fraction of high-educated in the assigned neighborhood raises compulsory school GPA by 0.9 percentile ranks. Particularly for disadvantaged groups, there are also long-run effects on educational attainment.
    Keywords: Peer effects; Ethnic enclaves; Immigration; School performance
    JEL: I20 J15 Z13
    Date: 2010–11–21
  12. By: Andrés Solimano; Diego Avanzini
    Abstract: International migration analysis often focuses on mass migration rather than on the international mobility of elites, which is the focus of this paper. The paper offers a three-fold classification of elites: (a) knowledge elites, (b) entrepreneurial elites and (c) political elites. We explore the concept of elites and their main motivation to move across nations and review indirect empirical evidence relevant to this type of mobility, highlighting some channels through which elites can affect international development.
    Keywords: international migration, entrepreneurial, political migrants, talent mobility
    Date: 2010
  13. By: Javorcik, Beata S.; Özden, Çağlar; Spatareanu, Mariana; Neagu, Cristina
    Abstract: Although there exists a sizeable literature documenting the importance of ethnic networks for international trade, little attention has been devoted to studying the effects of migrants on foreign direct investment (FDI). The presence of migrants can stimulate FDI by promoting information flows across international borders and by serving as a contract enforcement mechanism. This paper investigates the link between the presence of migrants in the US and US FDI in the migrants' countries of origin, taking into account the potential endogeneity concerns. The results suggest that US FDI abroad is positively correlated with the presence of migrants from the host country. The data further indicate that the relationship between FDI and migration is stronger for migrants with tertiary education.
    JEL: F22 F23 F21
    Date: 2011–03
  14. By: Pia M. Orrenius; Madeline Zavodny; Jesús Cañas; Roberto Coronado
    Abstract: Remittances have been promoted as a development tool because they can raise incomes and reduce poverty rates in developing countries. Remittances may also promote development by providing funds that recipients can spend on education or health care or invest in entrepreneurial activities. From a macroeconomic perspective, remittances can boost aggregate demand and thereby GDP as well as spur economic growth. However, remittances may also have adverse macroeconomic impacts by increasing income inequality and reducing labor supply among recipients. We use state-level data from Mexico during 2003–07 to examine the aggregate effect of remittances on employment, wages, unemployment rates, the wage distribution, and school enrollment rates. While employment, wages and school enrollment have risen over time in Mexican states, these trends are not accounted for by increasing remittances. However, two-stage least squares specifications among central Mexican states suggest that remittances shift the wage distribution to the right, reducing the fraction of workers earning the minimum wage or less.
    Keywords: Emigrant remittances - Latin America ; Economic development - Latin America ; Economic conditions - Mexico ; Labor market ; Income distribution ; Emigration and immigration
    Date: 2010
  15. By: Patricia Justino; Olga Shemyakina
    Abstract: This paper analyzes the impact of remittances on the labor supply of men and women in post-conflict Tajikistan. We find that on average men and women from remittance-receiving households are less likely to participate in the labor market and supply fewer hours when they do. The negative effect of remittances on labor supply is smaller for women, which is an intriguing result as other studies on remittances and labor supply (primarily focused on Latin America) have shown that female labor supply is more responsive to remittances. The results are robust to using different measures of remittances and inclusion of variables measuring migration of household members. We estimate a joint effect of remittances and an individual’s residence in a conflict-affected area during the Tajik civil war. Remittances had a larger impact on the labor supply of men living in conflict-affected areas compared to men in less conflict-affected areas. The impact of remittances on the labor supply of women does not differ by their residence in both the more or less conflict affected area.
    Date: 2010
  16. By: Månsson, Jonas (Centre for Labour Market Policy Research (CAFO)); Olsson, Mikael (Swedish International Development Cooperation Agency (SIDA))
    Abstract: In this study the 2004 labor market attainment of all immigrants of working age from Estonia, Latvia, Lithuania and Poland on the Swedish labor market is investigated. The analysis is conducted in three steps. Step one investigates labor force participation at the time of observation by estimating the probability of being part of the labor force in 2004. In step two we estimate the probability of employment among those included in the labor force. In the third step we analyze the earnings of those employed while controlling for both types of selection. The data is a special delivery from Statistics Sweden and comprise all immigrants to Sweden from these countries from 1944 onwards. Comparisons are made with a stratified (on age and gender) random sample of persons born in Sweden. The results show that immigrants are less likely to be part of the labor force; that they are overrepresented among the unemployed and that the positive effects from higher education is less than for native Swedes. However, among those being employed the income differences are relatively minor.
    Keywords: Migration; Integration; Labor market attainment; Estonia; Latvia; Lithuania; Poland; Sweden
    JEL: J21 J23 J31 J61
    Date: 2010–11–21
  17. By: Stéphane BECUWE (GREThA UMR CNRS 5113); Fatma MABROUK (GREThA UMR CNRS 5113)
    Abstract: This paper establishes an inventory of international migration and trade relationship. In the new global context, this link is complex and multidimensional. It includes political, economic, social, and legal, it involves many actors like international organizations, migrants, countries of origin and host. Our methodology is based on Principal Component Analysis and a Hierarchical Ascendant Classification to show a clear link between migration and trade, where distance is the main discriminating variable. We used a gravity model in cross section to show the positive effect of trade on international migration. The signs obtained for the two variables (exports and imports) indicate clearly a complementary relationship between migration and trade. We note also that the degrees of significance of these two variables are close. This seems to confirm that it is important that the bilateral trade relations are that migration is important.
    Keywords: International Migration, Foreign Trade, Principal components analysis, gravity model
    JEL: F22 F1 C21
    Date: 2010

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