nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2011‒07‒13
twenty papers chosen by
Yuji Tamura
Australian National University

  1. Do Social Transfers “Crowd-Out” Remittances: Evidence from Bosnia By Nermin Oruč
  2. Network Effects in International Migration: Education versus Gender By Michel Beine; Sara Salomone
  3. Migrant Women on the Labour Market: On the Role of Home- and Host-Country Participation By Kok, Suzanne; Bosch, Nicole; Deelen, Anja; Euwals, Rob
  4. The Evils of Forced Migration: Do Integration Policies Alleviate Migrants' Economic Situations? By Falck, Oliver; Heblich, Stephan; Link, Susanne
  5. University quality, interregional brain drain and spatial inequality. The case of Italy. By Ciriaci, Daria
  6. Immigration and the pension system in Spain. By Rojas, Juan A.
  7. Local economic development and migrant remittances in rural Zimbabwe: building on sand or solid ground? By Ncube, G.; Gomez, G.M.
  8. Voting over Selective Immigration Policies with Immigration Aversion By Rebeca Jiménez-Rodríguez; Giuseppe Russo
  9. Endogeneity and sample selection in a model for remittances By Giulia BETTIN; Riccardo LUCCHETTI; Alberto ZAZZARO
  10. Diaspora effects in international migration : key questions and methodological issues By Beine, Michel; Docquier, Frederic; Ozden, Caglar
  11. Where on earth is everybody ? the evolution of global bilateral migration 1960-2000 By Ozden, Caglar; Parsons, Christopher R.; Schiff, Maurice; Walmsley, Terrie L.
  12. Occupation-Education Mismatch of Immigrant Workers in Europe: Context and Policies By Mariya Aleksynska; Ahmed Tritah
  13. A firm level perspective on migration By Giulia BETTIN; Alessia LO TURCO; Daniela MAGGIONI
  14. Self-Employment of Rural-to-Urban Migrants in China By Giulietti, Corrado; Ning, Guangjie; Zimmermann, Klaus F.
  15. Turkey: Change from an emigration to an immigration and now to a transit migration country By Elitok, Secil Pacaci; Straubhaar, Thomas
  16. Is Turkey still an emigration country? By Elitok, Secil Pacaci; Straubhaar, Thomas
  17. Estimating the potential migration from Turkey to the European Union: A literature survey By Elitok, Secil Pacaci
  18. Development perspectives for the City of Hamburg: Migration, commuting, and specialization By Boje, Amelie; Ott, Ingrid; Stiller, Silvia
  19. Guest-worker Programs and the Propensity to Emigrate: Evidence from the Work-and-travel USA program in Romania By Daniel Pop
  20. Ensuring Labour Market Success for Ethnic Minority and Immigrant Youth By Francesca Froy; Lucy Pyne

  1. By: Nermin Oruč
    Abstract: This paper presents the results of estimation of the model of interaction between social transfers and remittances. Compared to previous studies, this paper estimates non-monotonic “crowding out” effect by an innovative empirical model specification. The model is then estimated by the two-stage Heckman’s selection method, where the receipt of remittances is the first stage, and amount of remittances received second stage dependent variable. The findings suggest that social transfers crowd-in remittances and that the predominant motive for sending remittances to Bosnia is exchange. In addition, the results do not support the Cox (1997) hypothesis about non-monotonic transfer motives.
    Date: 2011–02
  2. By: Michel Beine (CREA, University of Luxembourg, IRES, CREAM and CES-Ifo); Sara Salomone (IRES, Université catholique de Louvain and Tor Vergata University)
    Abstract: This paper analyzes the impact of networks on the structure of international migration flows. In particular, we investigate whether diaspora externalities are dif- ferent across education levels and gender. Using new data including both dimensions, we analyze the respective impact of networks on the proportion of each category of migrant. Therefore, in contrast to the preceding literature on macro determinants of international migration, we can identify the factors that influence the selection in terms skills and in terms of gender. We find that network effects vary by education level but not by gender.
    Keywords: Migration, Human capital, network/diaspora externalities, Gender
    JEL: F22 O15
    Date: 2011
  3. By: Kok, Suzanne (CPB Netherlands Bureau for Economic Policy Analysis); Bosch, Nicole (CPB Netherlands Bureau for Economic Policy Analysis); Deelen, Anja (CPB Netherlands Bureau for Economic Policy Analysis); Euwals, Rob (CPB Netherlands Bureau for Economic Policy Analysis)
    Abstract: The behaviour of migrant women on the labour market is influenced by a variety of factors, among which the culture of the home and host country. Part of the literature investigates the role of home-country culture. This study extends the literature by including a measure for the influence of host-country culture as an additional determinant of the participation of migrant women. The empirical model explains participation from demographics and educational attainment, and uses home- and host-country female participation as proxies for culture. Evidence on the basis of the Dutch Labour Force Survey 1996-2007 suggests that both differences in home-country female participation and the trend in native female participation, as a measure for host-country culture, affect the participation of migrant women. The results suggest that host-country participation is at least as important as home-country participation.
    Keywords: female labour force participation, immigration, cultural transmission
    JEL: J16 J22 J61
    Date: 2011–06
  4. By: Falck, Oliver (Ifo Institute for Economic Research); Heblich, Stephan (University of Stirling); Link, Susanne (Ifo Institute for Economic Research)
    Abstract: Armed conflicts, natural disasters and infrastructure projects continue to force millions into migration. This is especially true for developing countries. After World War II, about 8 million ethnic Germans experienced a similar situation when forced to leave their homelands and settle within the new borders of West Germany. Subsequently, a law was introduced to foster their labor market integration. We evaluate the success of this law using unique retrospective individual-level panel data. We find that the law improved expellees' overall situation but failed to restore their pre-war occupation status. This holds implications for the design of integration policies today.
    Keywords: forced migration, integration policy, difference-in-differences, Germany
    JEL: N30 J61
    Date: 2011–06
  5. By: Ciriaci, Daria
    Abstract: Universities are increasingly recognized as key driver of economic development through their role in knowledge production and human capital accumulation, and as attraction poles for talents. That is why this paper analyses the sequential migration behaviour of Italian students-graduates before their enrolment at university, and after graduation, and the role that university quality has in these choices. From a regional development perspective, a better understanding of the causes of Italian interregional brain drain may help to guide policy intervention aimed at reversing or partially compensating for its negative effects on the source regions. The results confirm ‘university quality’ as a «supply» tool for policy makers to counterbalance the negative effects of the brain drain on human capital accumulation.
    Keywords: Brain-drain; labour mobility; university quality; regional economic disparities.
    JEL: R58 J61 R23
    Date: 2009–12–06
  6. By: Rojas, Juan A.
    Abstract: In this paper we use a large overlapping generations model with individuals that differ across age, productivity and native status to assess the effects on the pension system of different immigration quotas in the context of an aging population by computing how much should social security taxes be rised in order to pay for the pension burden in two model economies. The first one is the standard model pioneered by Auerbach and Kotlikoff (1987) where skilled and unskilled workers are perfect substitutes in the production process. In the second model economy, individuals with different skill levels are imperfect substitutes as in Canova and Ravn (1998). The main result of the paper is that half of the reduction of the social security tax rate associated with immigration in the standard model is lost when skilled and unskilled individual are imperfect substitutes. Consequently, the standard model with perfect substitution overestimates the ability of immigration inflows to sustain the pension system in Spain.
  7. By: Ncube, G.; Gomez, G.M.
    Abstract: The paper explores the impact of migrant remittances on local economic development in a locality where more than half of the households have been recipients for at least five years. The study has taken place in rural Zimbabwe and uses an ethnographic method devised for this research. The method was termed “follow the money†and consists of a scrutiny of several rounds of economic exchange of goods and services in the locality, starting when households receive the cash. Consistent with previous research, the study found that remittances boost the consumption of receiving households and have a limited but positive effect on non-receiving households. Part of the cash transfers are used for equipment and investment, mostly in traditional agricultural activities. This study highlights that remittances are responsible for the creation of a significant number of jobs locally, although insecure and low waged, and a small number of growth-oriented businesses, mostly by non-recipients and oriented to the local market. The study highlights the potential for government intervention to further enterprise development with the last group of entrepreneurs in order to localise the longer-term effects of remittances.
    Keywords: migration;remittances;local development;employment creation;enterprise creation;Zimbabwe
    Date: 2011–05–10
  8. By: Rebeca Jiménez-Rodríguez (University of Salamanca); Giuseppe Russo (University of Salerno and CSEF)
    Abstract: Selective immigration policies set lower barriers to entry for skilled workers. However, simple economic intuition suggests that skilled majorities should welcome unskilled immigrants and protect skilled natives. This paper studies the voting over a selective policy in a two-country, three-factor model with skilled and unskilled labor, endogenous migration decisions, costly border enforcement and aversion to immigration. Results show that heterogeneity in capital distribution forces skilled voters to form a coalition with unskilled voters, who become pivotal. The voting outcome is therefore biased towards the preferences of the latter, and consists in a selective protectionism. Finally, immigration aversion helps to explain why skilled majorities do not bring down entry barriers against unskilled workers.
    Keywords: selective immigration policies, multidimensional voting, cultural preferences, Condorcet winner
    JEL: D72 F22 J18
    Date: 2011–07–05
  9. By: Giulia BETTIN (Universita' Politecnica delle Marche, Dipartimento di Economia); Riccardo LUCCHETTI (Universita' Politecnica delle Marche, Dipartimento di Economia); Alberto ZAZZARO (Universita' Politecnica delle Marche, Dipartimento di Economia)
    Abstract: We estimate a remittance model in which we address endogeneity and reverse causality relationships between remittances, pre-transfer income and consumption. In order to take into account the fact that a large share of individuals do not remit, instrumental variable variants of the double-hurdle and Heckit selection models are proposed and estimated by Limited Information Maximum Likelihood (LIML). Our results for a sample of recent immigrants to Australia show that endogeneity is substantial and that estimates obtained by the methods previously employed in the literature may be very misleading if given a behavioural interpretation.
    Keywords: migration, remittances, selection models
    JEL: C21 C24 F22 F24
    Date: 2011–06
  10. By: Beine, Michel; Docquier, Frederic; Ozden, Caglar
    Abstract: This paper reviews the existing literature on the impact of migrants networks on the patterns of international migration. It covers the theoretical channels at stake in the global effect of the networks. It identifies the key issues, namely the impact on size, selection and concentration of the migration flows. The paper also reviews the empirical hurdles that the researchers face in assessing the importance of networks. The key issues concern the choice of micro vs a macro approach, the definition of a network, the access to suitable data and the adoption of econometric methods accounting for the main features of those data. Finally, the paper reports a set of estimation outcomes reflecting the main findings of the macro approach.
    Keywords: Population Policies,Voluntary and Involuntary Resettlement,Human Migrations&Resettlements,International Migration,Anthropology
    Date: 2011–06–01
  11. By: Ozden, Caglar; Parsons, Christopher R.; Schiff, Maurice; Walmsley, Terrie L.
    Abstract: Global matrices of bilateral migrant stocks spanning 1960–2000 are presented, disaggregated by gender and based primarily on the foreign-born definition of migrants. More than one thousand census and population register records are combined to construct decennial matrices corresponding to the five census rounds between 1960 and 2000. For the first time, a comprehensive picture of bilateral global migration over the second half of the 20th century emerges. The data reveal that the global migrant stock increased from 92 million in 1960 to 165 million in 2000. Quantitatively, migration between developing countries dominates, constituting half of all international migration in 2000. When the partition of India and the dissolution of the Soviet Union are accounted for, migration between developing countries is remarkably stable over the period. Migration from developing to developed countries is the fastest growing component of international migration in both absolute and relative terms. The United States has remained the most important migrant destination in the world, home to one fifth of the world’s migrants and the top destination for migrants from some 60 sending countries. Migration to Western Europe has come largely from elsewhere in Europe. The oil-rich Persian Gulf countries emerge as important destinations for migrants from the Middle East and North Africa and South and Southeast Asia. Finally, although the global migrant stock is predominantly male, the proportion of female migrants increased noticeably between 1960 and 2000. The number of women rose in every region except South Asia.
    Keywords: Population Policies,Gender and Development,International Migration,Human Migrations&Resettlements,Voluntary and Involuntary Resettlement
    Date: 2011–06–01
  12. By: Mariya Aleksynska; Ahmed Tritah
    Abstract: This paper analyses occupational matching of immigrants from over seventy countries of origin to 22 European countries. Using European Social Survey for the years 2002-2009 and the multinomial logit framework, we show that, relative to the native born, immigrants are more likely to be both under- and overeducated for the jobs that they perform. This mismatch is due to individual-specific factors, such as labor market experience and its transferability. Immigrants’ outcomes converge to those of the native born with the years of labor market experience. The mismatch is also due to immigrants’ selection and sorting across countries. Notably, we show that origin countries’ degree of income inequality and the quality of human capital, by affecting selection, mostly matter for undereducation of immigrants. Overeducation is determined to a greater extent by destination-country economic conditions and labor market institutions. Immigrant-specific policies in destination countries, such as those improving eligibility and fighting discrimination, also positively affect overall matching, while policies promoting integration decrease undereducation.
    Keywords: Immigration; occupational mismatch; overeducation; ORU realized matches; migration policies
    JEL: I21 J24 J61 F22
    Date: 2011–07
  13. By: Giulia BETTIN (Universit… di Napoli Parthenope, Dipartimento di Studi Economici); Alessia LO TURCO (Universita' Politecnica delle Marche, Dipartimento di Economia); Daniela MAGGIONI (Universita' Politecnica delle Marche, Dipartimento di Economia)
    Abstract: We address the role of migrant workers from extra-EU countries in Italian manufacturing production at the firm-level. Cross price and demand elasticities confirm the complementarity found in previous studies between migrants and natives, which holds when native workers are split into white and blue collars. However, when measuring how the ratio of domestic to migrant (migrant to domestic) workers changes in response to a change in the migrant (domestic) wage - Morishima Elasticity of Substitution - we find that the two labour inputs are substitutes. We further analyse the effect of the use of foreign labour in manufacturing firms on the industry composition. We find that, ceteris paribus, had migrant labour not grown in our sample period, the weight of Low Skill intensive sectors would have been approximately 2% lower and the white to blue collars ratio would have been slightly higher than observed, even accounting for the complementarity between natives and migrants.
    Keywords: Migrant workers, elasticity of substitution, manufacturing production technology
    JEL: F22 J61 L60
    Date: 2011–06
  14. By: Giulietti, Corrado (IZA); Ning, Guangjie (Nankai University); Zimmermann, Klaus F. (IZA and University of Bonn)
    Abstract: This paper focuses on the determinants of self-employment among rural to urban migrants in China. Two self-selection mechanisms are analysed: the first relates to the manner in which migrants choose self-employment or paid work based on the potential gains from either type of employment; the second takes into account that the determinants of the migration decision can be correlated with employment choices. Using data from the 2008 Rural-Urban Migration in China and Indonesia (RUMiCI) survey, a selection model with endogenous switching is estimated. Earnings estimates are then used to derive the wage differential, which in turn is used to model the employment choice. The procedure is extended to account for migration selectivity and to compare individuals with different migration background and employment histories. The results indicate that self-employed individuals are positively selected with respect to their unobserved characteristics. Furthermore, the wage differential is found to be an important driver of the self-employment choice.
    Keywords: self-employment, wages, rural to urban migration, selection bias magnets, European Union
    JEL: J23 J61 O15
    Date: 2011–06
  15. By: Elitok, Secil Pacaci; Straubhaar, Thomas
    Abstract: In the post Second World War period Turkey was an emigration country for a long time. But things have changed since. After the end of the Cold War and the breakup of the Soviet Union, immigration from the neighborhood to Turkey increased substantially. A lively cross-border movement with the countries of the former Soviet Union, but also with the Middle East countries (i.e. especially Iran), has occurred. On the other hand, Western European countries have become extremely reluctant to open up their borders to Turkish migrants. As a consequence, Turkey is a country of emigration, immigration and transit, nowadays. In this paper, we concentrate on immigration and transit migration. --
    Date: 2010
  16. By: Elitok, Secil Pacaci; Straubhaar, Thomas
    Abstract: Located at the geographical intersection between East and West, with both Mediterranean and Black Sea coasts, Turkey was always a country with large movements of people. There were several waves of forced (ethnic) movement of people as a consequence of the collapse of the Ottoman Empire and the following nation-building process in the Turkish neighborhood. In the post-Second world war period, Turkey became a country of emigration. In 1961 a bilateral agreement on labor recruitment between Turkey and Germany had been signed. In the following years, similar bilateral agreements were reached with a couple of other European countries (Austria, Belgium, France, the Netherland and Sweden). Nowadays, things have changed. Turkey is still a country of emigration. But it has also become a country of immigration and transit. And therefore, it faces similar challenges of migration and integration that are characteristic for areas with strong cross-cultural movements of people. In this paper, we concentrate on the emigration flows. --
    Date: 2010
  17. By: Elitok, Secil Pacaci
    Abstract: The likelihood of a potential migration flow from Turkey into the European Union (EU) has increasingly been the focus of debates among academics and policy makers. As having one of the fastest growing populations of Europe, Turkey and its migration potential are the nexus of fears and concerns. Against this background, this paper is a survey of the growing literature on the estimations of the volume of potential migration from Turkey to the EU within the context of possible Turkish membership. Taking into account the methodological problems, drawbacks of the data and definitional issues, this article aims at critically evaluating the existing literature. In the light of potential migration discussions, this paper emphasizes the necessity of a shift in the focus of debate from quantitative aspects, that are overemphasizing the economic aspects, to qualitative dimensions of migration potential from Turkey to the EU. --
    Date: 2010
  18. By: Boje, Amelie; Ott, Ingrid; Stiller, Silvia
    Abstract: This paper disentangles the single effects of increasing transportation costs on the arising economic structure and applies them to the regional level of the metropolis of Hamburg. Therefore we begin with a general indexing of the metropolis Hamburg in the context of Germany's ten biggest cities according to some key economic variables. Of major importance are issues of migration, commuting as well as structural change and regional specialization. As will become apparent all these aspects are differently affected by (changing) transportation costs and it is finally the interplay of different forces that shapes the future structure and hence the economic success of the metropolis. From the viewpoint of private individuals, increasing transportation costs affect the outweighing of commuting from home to the working place versus migration. Focusing on the production site, not only direct but also indirect effects that arise from horizontal or vertical relationships gain importance. --
    Date: 2010
  19. By: Daniel Pop
    Abstract: Targeted seasonal guest-worker program replace wider scope immigration policy and are expected to formalize irregular migration flows, to recruit sufficient numbers of seasonal migrants, and to provide critical revenues of source countries following the return of migrants with their earnings. Understating temporary migrant selectivity, the experience of engaging in work-and-travel abroad programs (for instance, in contrast to the existing evidence of study-abroad programs) is important for capturing the role temporary guest-worker programs could have in the extent at which the supposed “triple win” achieved. This research found that college students that participated in the work & study abroad seasonal guest-worker programs for college students are 38% less likely to emigrate compared to those that did not participate in the program.
    Date: 2009–08
  20. By: Francesca Froy; Lucy Pyne
    Abstract: The labour market integration of young people from ethnic minority and immigrant backgrounds is one of those issues which government finds it a challenge to address, particularly in the current climate of growing youth unemployment. Supporting access to the labour market for all young people is typically a multifaceted issue, with both social and economic dimensions. In the case of immigrants and minority groups, it is no easier as it involves working with different cultures, traditions and customs, and in some cases, tackling intergenerational problems of exclusion. Unsurprisingly, more than one government department or agency is involved in this policy area. In fact, the stakeholders involved are many, drawn from the public service, the private sector and civil society.
    Date: 2011–06

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