nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2011‒05‒14
seventeen papers chosen by
Yuji Tamura
Australian National University

  1. Your Place or Mine? On the Residence Choice of Young Couples in Norway By Loken, Katrine V.; Lommerud, Kjell Erik; Lundberg, Shelly
  2. Identity and Mobility: Historical Fractionalization, Parochial Institutions, and Occupational Choice in the American Midwest By Nicholas Wilson; Kavian Munshi
  3. The Role of Race and Birth Place in Welfare Usage among Comparable Women: Evidence from the U.S. By Uwaifo Oyelere, Ruth; Oyolola, Maharouf
  4. Fraud and Poverty: Exploring Ex Ante Victim Data By Yoshito Takasaki
  5. Did the 2007 Legal Arizona Workers Act Reduce the State's Unauthorized Immigrant Population? By Bohn, Sarah; Lofstrom, Magnus; Raphael, Steven
  6. Two-way migration between similar countries By Kreickemeier, Udo; Wrona, Jens
  7. International migration and new mobility trends By Abramuszkinova Pavlikova, Eva
  8. The effect of occupation-specific brain drain on human capital By Heuer, Nina
  9. Short Duration Migration in India: An Appraisal from Census 2001 By Vijay Korra
  10. Immigration and Innovation in European Regions By Ozgen, Ceren; Nijkamp, Peter; Poot, Jacques
  11. Education and Migration Choices in Hierarchical Societies: The Case of Matam, Senegal By Auriol, Emmanuelle; Demonsant, Jean-Luc
  12. The Effect of Foreign Remittances on Schooling: Evidence from Pakistan By Muhammad Nasir; Muhammad Salman Tariq; Faiz-ur-Rehman
  13. Moving to Segregation: Evidence from 8 Italian cities By Tito Boeri; Marta De Philippis; Eleonora Patacchini; Michele Pellizzari
  14. Immigration and Innovation By Maré, David C.; Fabling, Richard; Stillman, Steven
  15. Agglomeration, tax competition and local public goods supply. By Norman, Eva Benedicte Danielsen; Norman, Victor Danielsen
  16. Workers’ Remittances and the Equilibrium Real Exchange Rate: Theory and Evidence By Adolfo Barajas; Ralph Chami; Dalia Hakura; Peter Montiel
  17. Migrace v České republice v kontextu nových trendů By Abramuszkinova Pavlikova, Eva

  1. By: Loken, Katrine V. (University of Bergen); Lommerud, Kjell Erik (University of Bergen); Lundberg, Shelly (University of California, Santa Barbara)
    Abstract: Norwegian registry data is used to investigate the location decisions of a full population cohort of young adults as they complete their education, establish separate households and form their own families. We find that the labor market opportunities and family ties of both partners affect these location choices. Surprisingly, married men live significantly closer to their own parents than do married women, even if they have children, and this difference cannot be explained by differences in observed characteristics. The principal source of excess female distance from parents in this population is the relatively low mobility of men without a college degree, particularly in rural areas. Despite evidence that intergenerational resource flows, such as childcare and eldercare, are particularly important between women and their parents, the family connections of husbands appear to dominate the location decisions of less-educated married couples.
    Keywords: intergenerational proximity, marriage, location decisions
    JEL: J12 J16 J61
    Date: 2011–04
  2. By: Nicholas Wilson (Williams College); Kavian Munshi (Brown University)
    Abstract: This paper examines the role played by a specific identity, defined as the attachment to a hometown, in determining occupational choice and mobility. The analysis links competition between ethnic networks in the Midwest when it was first developing, and the in-group identity that emerged endogenously to support these networks, to institutional participation and occupational choice today. Individuals born in counties with greater ethnic fractionalization in 1860 are today -- 150 years later --(i) significantly more likely to participate in institutions such as churches and parochial schools that transmit identity from one generation to the next, and (ii) significantly less likely to select into mobile skilled occupations. The effect of historical fractionalization on participation in these socializing institutions actually grows stronger over the course of the twentieth century, emphasizing the idea that small differences in initial conditions can have large long-term effects on institutions and economic choices.
    Keywords: Identity, Institutional persistence, Networks, Occupational choice, Mobil- ity
    JEL: D85 J62 L14 L22
    Date: 2010–10
  3. By: Uwaifo Oyelere, Ruth (Georgia Tech); Oyolola, Maharouf (University of Vermont)
    Abstract: There is evidence that women are more likely to live in poverty than men. Given the fact that the poor are more likely to use welfare, it becomes useful to consider welfare usage among women. A-priori welfare programs are set up in such a way that welfare usage should be based primarily on economic needs and health concerns. However, it is possible that an individual’s experiences could affect their perception and preferences for using government assistance. In this scenario, differences in welfare usage will exist for individuals with similar characteristics but different experiences. We explore this possibility among women and investigate if race/ethnicity and birthplace still have a role to play in the decision to use welfare even after controlling for income, health and other demographic factors like employment. We find that race does not matter for welfare usage among comparable women. In addition, we do not find any significant differences in welfare usage among women based on birthplace – suggesting that comparable naturalized and native born women share similar preference for welfare. The only exception is women born in U.S territories. Our results suggest that among comparable women, women born in U.S territories seem to be more inclined to welfare usage in comparison to U.S born White women.
    Keywords: birth place, ethnicity, race, immigrants, women, welfare usage, black, welfare, immigrant status
    JEL: J2 J10 J24 J38 I21 O12 O15
    Date: 2011–04
  4. By: Yoshito Takasaki
    Abstract: Fraud studies rely on potentially underreported/misreported victim data in developed countries, virtually ignoring developing countries. This paper proposes using ex ante victim data, to be collected before attempted victims become aware of the fraudulence, and examines recruitment fraud, which is tightly linked with poverty. In rural Fiji, almost one quarter of households were defrauded of application fees for labor migration. The bigger problem is indirect costs: Controlling for victim endogeneity reveals that households’ false expectations about international remittances led to a significant reduction in the domestic private transfers victims received. The analysis sharply identifies who was victimized and why/why not.
    Date: 2011–02
  5. By: Bohn, Sarah (Public Policy Institute of California); Lofstrom, Magnus (Public Policy Institute of California); Raphael, Steven (University of California, Berkeley)
    Abstract: We test for an effect of Arizona’s 2007 Legal Arizona Workers Act (LAWA) on the proportion of the state population characterized as foreign-born, as non-citizen, and as non-citizen Hispanic. We use the synthetic control method to select a group of states against which the population trends of Arizona can be compared. We document a notable and statistically significant reduction in the proportion of the Arizona population that is foreign-born and in particular, that is Hispanic noncitizen. The decline observed for Arizona matches the timing of LAWA's implementation, deviates from the time series for the chosen synthetic control group, and stands out relative to the distribution of placebo estimates for the remainder of states in the nation. Furthermore, we do not observe similar declines for Hispanic naturalized citizens, a group not targeted by the legislation. Our results on LAWA's impact on the housing market provide further support for our findings.
    Keywords: illegal, unauthorized, undocumented, immigration, Hispanic, Arizona
    JEL: J8 J11 J15 J18 J48 J61
    Date: 2011–04
  6. By: Kreickemeier, Udo; Wrona, Jens
    Abstract: We develop a model to explain two-way migration of high-skilled individuals between countries that are similar in their economic characteristics. High-skilled migration is explained by a combination of two features: In both countries there is a continuum of workers with differing abilities, which are private knowledge, and the production technology gives incentives to firms for hiring workers of similar ability. In the presence on migration cost, high-skilled workers self-select into the group of migrants, thereby ensuring they are hired together with other high-skilled migrants. The laissez-faire equilibrium features too much migration, explained by a negative migration externality, and as a result all individuals are worse of than in autarky. We also show that for suffciently low levels of migration cost the optimal level of migration is strictly positive. In extensions to our basic model, we consider the presence of an internationally immobile factor and find that in this case the possibility of aggregate gains from migration in the laissez-faire equilibrium emerges. We also show that our basic results are robust with respect to small differences in countries' technologies. --
    Keywords: Migration,Skilled Workers,Positive Assortative Matching,Externalities
    JEL: F22 D82
    Date: 2011
  7. By: Abramuszkinova Pavlikova, Eva
    Abstract: World migration community covers 3% of the world population, in Europe it is around 7% and 4% in the Czech Republic. Europe is an important target for migration stimulated by the work offer but also by wars and natural disasters. In Western Europe at the end of the 20th century there were 20 millions of foreign migrants and also probably 3-5 million illegal migrants. Recently, we have faced new trends in international mobility which are different from traditional migration flows. They include mobility of multinational firms employees, mobility of students, pensioners but also mobility of professionals. Specific group under study is foreign migration or mobility of scientists and researchers. There is another phenomena connected with the development of modern technologies which stimulates the mobility in virtual space. Virtual mobility is another form of mobility which is using virtual space for communication, study, work and other aspects of life. The aim of this paper is to introduce the main trends in international migration including the traditional ones but stressing the new types of international mobility. The focus will be on the current situation in the Czech Republic related to migration.
    Keywords: migration; international mobility; foreigners; high skilled professionals; brain drain; virtual mobility
    JEL: F22 Z1 O19
    Date: 2011–01
  8. By: Heuer, Nina
    Abstract: This paper tests the hypothesis of a beneficial brain drain using occupation-specific data on migration from developing countries to OECD countries around 2000. Distinguishing between several types of human capital allows to assess whether the impact of high-skilled south-north migration on human capital in the sending economies differed across occupational groups requiring tertiary education. We find a robust negative effect of the incidence of high-skilled emigration on the level of human capital in the sending countries, thereby rejecting the hypothesis of a beneficial brain drain. The negative effect was significantly stronger for professionals - the occupational category with the largest incidence of south-north migration and the highest educational requirements - than for technicians and associate professionals. --
    Keywords: International migration,Occupation-specific brain drain,Human capital,Transferability of skills,Beneficial brain drain
    JEL: F22 J24 O15
    Date: 2011
  9. By: Vijay Korra
    Abstract: This paper tries to focus on the method to assess the magnitude of short/seasonal migration based on its broad characteristics. It attempts to analyse the contrasting characteristics of short duration and permanent migration. The study applies the widely recognised demographic technique of Parity Progression Ratio to measure the magnitude of short duration migrants. [Working Paper No. 442]. URL:[].
    Keywords: demographic, parity progression ratio, migrants, indian economy, livelihood generation, census 2001, employment, skills, Short-duration migration, Temporary migration, Seasonal migration, Circular migration, Employment, Wage rates, Occupation, Destination, Earnings, Economic activity
    Date: 2011
  10. By: Ozgen, Ceren (VU University Amsterdam); Nijkamp, Peter (VU University Amsterdam); Poot, Jacques (University of Waikato)
    Abstract: The concentration of people with diverse socio-cultural backgrounds in particular geographic areas may boost the creation of new ideas, knowledge spillovers, entrepreneurship, and economic growth. In this paper we measure the impact of the size, skills, and diversity of immigration on the innovativeness of host regions. For this purpose we construct a panel of data on 170 regions in Europe (NUTS 2 level) for the periods 1991-1995 and 2001-2005. Innovation outcomes are measured by means of the number of patent applications per million inhabitants. Given the geographical concentration and subsequent diffusion of innovation activity, and the spatial selectivity of immigrants' location choices, we take account of spatial dependence and of the endogeneity of immigrant settlement in our econometric modelling. We use the location of McDonald's restaurants as a novel instrument for immigration. The results confirm that innovation is clearly a function of regional accessibility, industrial structure, human capital, and GDP growth. In addition, patent applications are positively affected by the diversity of the immigrant community beyond a critical minimum level. An increase in the fractionalization index by 0.1 from the regional mean of 0.5 increases patent applications per million inhabitants by about 0.2 percent. Moreover, the average skill level of immigrants (proxied by global regions of origin) also affects patent applications. In contrast, an increasing share of foreigners in the population does not conclusively impact on patent applications. Therefore, a distinct composition of immigrants from different backgrounds is a more important driving force for innovation than the sheer size of the immigrant population in a certain locality.
    Keywords: innovation, economic growth, cultural diversity, immigration, spatial autocorrelation
    JEL: J61 O31 R23
    Date: 2011–04
  11. By: Auriol, Emmanuelle (TSE, ARQADE and IDEI); Demonsant, Jean-Luc (Universidad Autonoma de Nuevo Leon)
    Abstract: The paper aims at studying determinants of schooling in traditional hierarchical societies confronted with an established history of outmigration. In the village, a ruling caste controls local political and religious institutions. For children who do not belong to the ruling caste, migration is a social mobility factor that is enhanced by formal schooling. Since formally educated children tend not to return, the ruling caste seeks to develop family loyalty by choosing religious education instead. The theory hence predicts that the social status of the family has a signicant impact on educational choice. Children from the ruling caste who are sent abroad have a lower probability of being sent to formal school. They are more likely to be sent to Koranic schools that emphasize religious and family values. The theoretical predictions are tested on data from Matam region in Senegal, a region where roughly one of every two children have ever attended school.
    Keywords: Schooling, Migration, Social Status, Haalpulaar
    JEL: I21 O12 O15 O17 Z13
    Date: 2011–03–28
  12. By: Muhammad Nasir (Pakistan Institute of Development Economics, Islamabad.); Muhammad Salman Tariq (Pakistan Institute of Development Economics, Islamabad.); Faiz-ur-Rehman (Quaid-i-Azam University, Islamabad.)
    Abstract: The underlying study intends to show the impact of foreign remittances on the educational performance of children in the households receiving these remittances. Much of the literature in this area covers the effects of remittances on poverty, consumption, and investment behaviour of the receiving households. The literature on the impact of remittances on educational performance, however, is rare, especially in Pakistan. To investigate the impact of remittances on educational performance, primary data at the household level is collected from four main cities of the Khyber Pakhtunkhwa Province, Pakistan. The OLS results illustrate that, without considering parental education, remittances have significant adverse effects on educational performance. However, the effect becomes insignificant once parental education is included, as a control variable, in the regression. The results also reveal that the low level of parental education, current income, assets, family type, and family size play an important role in the educational performance of children.
    Keywords: Remittances , Education, Parental Absence
    JEL: A20 I22
    Date: 2011
  13. By: Tito Boeri; Marta De Philippis; Eleonora Patacchini; Michele Pellizzari
    Abstract: We use a new dataset and a novel identification strategy to analyze the effects on labor market outcomes of residential segregation of migrants in 8 Italian cities. Our data are representative of the population of both legal and illegal migrants, allow us to measure segregation at the very local level (the block) and include measures of housing prices, commuting costs and migrants’ linguistic ability. We find evidence that migrants who reside in areas with a high concentration of non-Italians are less likely to be employed compared to similar migrants who reside in less segregated areas. In our preferred specification, a 10 percentage points increase in residential segregation reduces the probability of being employed by 7 percentage points or about 8% over the average. Additionally, we also show that this effect emerges only above a critical threshold of 15-20% of migrants over the total local population, below which there is no statistically detectable effect. Contrary to common wisdom, in our data migrants seem to be positively selected into segregated areas. A simple matching model with heterogeneous workers and endogenous sorting into heterogeneous locations rationalizes our findings and is supported by additional empirical results.
    Date: 2011
  14. By: Maré, David C. (Motu Economic and Public Policy Research Trust); Fabling, Richard (Reserve Bank of New Zealand); Stillman, Steven (Motu Economic and Public Policy Research Trust)
    Abstract: We combine firm-level innovation data with area-level Census data to examine the relationship between local workforce characteristics, especially the presence of immigrants and local skills, and the likelihood of innovation by firms. We examine a range of innovation outcomes, and test the relationship for selected subgroups of firms. We find a positive relationship between local workforce characteristics and average innovation outcomes in labour market areas, but this is accounted for by variation in firm characteristics such as firm size, industry, and research and development expenditure. Controlling for these influences, we find no systematic evidence of an independent link between local workforce characteristics and innovation.
    Keywords: local labour market, immigration, innovation
    JEL: O31 R30
    Date: 2011–04
  15. By: Norman, Eva Benedicte Danielsen (Samfunns- og Næringslivsforskning); Norman, Victor Danielsen (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: In this paper we develop a framework for studying tax competition and local public goods supply in a setting where real and fiscal externalities interact with local democracy. We use the framework (a) to analyse if there is any reason to believe that local autonomy generally will give a tax race to the bottom (there is not), and (b) to look more closely at possible sources of oversupply or undersupply of publicly provided goods in a setting where local democracies compete for people. We identify two potential sources – the relationship between individual mobility and willingness to pay for publicly provided goods, and the mobility distribution of individuals (i.e. the distribution of individuals over residential preferences). The two could reinforce each other in a local democracy if the majority of the residents in a community are relatively mobile (the “American” case), while they would pull in opposite directions if the majority of residents are relatively immobile (the “European” case).
    Keywords: Tax competition; local public goods; agglomeration; migration; regional economic policy
    JEL: F12 H21 H73 J61
    Date: 2010–08–17
  16. By: Adolfo Barajas; Ralph Chami; Dalia Hakura; Peter Montiel
    Abstract: "This paper investigates the impact of workers’ remittances on equilibrium real exchange rates (ERER) in recipient economies. Using a small open economy model, it shows that standard “Dutch Disease” results of appreciation are substantially weakened or even overturned depending on: degree of openness, factor mobility between domestic sectors, and countercyclicality of remittances; the share of consumption in tradables; and the sensitivity of a country’s risk premium to remittance flows. Panel cointegration techniques on a large set of countries provide support for these analytical results, and show that ERER appreciation in response to sustained remittance flows tends to be quantitatively small."
    Date: 2011–04–30
  17. By: Abramuszkinova Pavlikova, Eva
    Abstract: Europe is an important target for rapidly increasing number of different migration flows. Most migrants are economically active and their main motivation for stay abroad is a job or a family reunion. New migration trends are present also in the Czech Republic which has changed from a transit country before 1990 into the country of destination for foreigners from various countries with different reasons for a stay. Nearly four percentage proportion of foreigners in the Czech society is slowly increasing. A specific nowadays phenomena is the migration of professionals and the brain drain issue. It is a challenge for the Czech Republic if to become an attractive country for highly skilled professionals who could assist with the development of society and increase of competitiveness.
    Keywords: world migration and the CR; migration trends; foreigners in the CR
    JEL: F22
    Date: 2011–01

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