nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2011‒10‒22
seven papers chosen by
Yuji Tamura
Australian National University

  1. Immigration and the demand for life insurance: Evidence from Canada, 1911 By Alan de BROMHEAD; Karol Jan BOROWIECKI
  2. Agricultural Policy, Migration, and Malaria in the 1930s United States By Alan Barreca; Price V. Fishback; Shawn Kantor
  3. Welfare Magnet Hypothesis, Fiscal Burden and Immigration Skill Selectivity By Assaf Razin; Jackline Wahba
  4. A framework for acquiring the resources vital for the start-up of a business in South Africa:an African Immigrant’s Perspective By Tengeh, Robertson Khan /RKT; Ballard, Harry / HB; Slabbert, Andre /AS
  5. Determinants of Internal and International Migration in Ethiopia By Mekonnen Beyene, Berhe
  6. Migration and Dispersal of Hispanic and Asian Groups: An Analysis of the 2006-2008 Multiyear American Community Survey By William Frey; Julie Park
  7. Labour market adjustment in the Spanish regions: a first examination to the immigration shock, 1995-2002 By José V. Blanes; Francisco Requena; Guadalupe Serrano

  1. By: Alan de BROMHEAD (Mansfield College, Oxford University); Karol Jan BOROWIECKI (Department of Economics, Trinity College Dublin)
    Abstract: This paper analyses the determinants of the demand for life insurance using sample data from the 1911 Census of Canada. We find that immigrants’ demand for life insurance was on average around seven percent lower than that of native born Canadians and varied depending on the time that elapsed since immigration. The results imply substantially lower risk aversion of immigrants and possibly indicate the importance of personal networks for informal risk sharing that could evolve over time. We also find that the value of life insurance held by immigrants increases with time elapsing since immigration and converge towards the value of individuals born in Canada.
    Keywords: Insurance, welfare, migration, Canada
    JEL: G22 J61 N31
    Date: 2011–10
  2. By: Alan Barreca; Price V. Fishback; Shawn Kantor
    Abstract: The Agricultural Adjustment Act (AAA) caused a population shift in the United States in the 1930s. Evaluating the effects of the AAA on the incidence of malaria can therefore offer important lessons regarding the broader consequences of demographic changes. Using a quasi-first difference model and a robust set of controls, we find a negative association between AAA expenditures and malaria death rates at the county level. Further, we find the AAA caused relatively low-income groups to migrate from counties with high-risk malaria ecologies. These results suggest that the AAA-induced migration played an important role in the reduction of malaria.
    JEL: H3 H51 N32
    Date: 2011–10
  3. By: Assaf Razin; Jackline Wahba
    Abstract: This paper revisits the magnet hypothesis and investigates the impact of the welfare generosity on the difference between skilled and unskilled migration rates. The main purpose of the paper is to assess the role of mobility restriction on shaping the effect of the welfare state genrosity. In a free migration regime, the impact is expected to be negative on the skill composition of migrants while in a restricted mobility regime, the impact will be the opposite, as voters will prefer selective migration policies, favoring skilled migrants who tend to be net contributors to the fiscal system. We utilize the free labor movement within EUR (the EU, Norway and Switzerland) and the restricted movement from outside of the EUR to compare the free migration.
    JEL: F22 H3 J48
    Date: 2011–10
  4. By: Tengeh, Robertson Khan /RKT; Ballard, Harry / HB; Slabbert, Andre /AS
    Abstract: Using a triangulation of three methods, we devise a framework for the acquisition of the resources vital for the start-up of a business in South Africa. Against the backdrop of the fact that numerous challenges prohibit African immigrants from starting a business, let alone growing the business, we set out to investigate how those who succeed acquired the necessary resources. Within the quantitative paradigm, the survey questionnaire was used to collect and analyze the data. To compliment the quantitative approach, personal interviews and focus groups were utilised as the methods within the qualitative approach paradigm. The research revealed that an African immigrant entrepreneur is most likely to be a male between the ages of 19 and 41 who has been forced to immigrate by political circumstances. Once in South Africa, limited job opportunities forced these immigrants into starting-up a business. In order of importance, financial, informational, human and physical, resources were identified as being critical for the start-up a business. With respect to the acquisition of resources, African immigrant entrepreneurs unwillingly made use of personal savings to finance their businesses during the start-up phase of the business. Financial resource played a double role in that it determined the main sources of physical resources used. From a human resource perspective, African immigrant entrepreneurs preferred employing South Africans during the start-up phase of the business, and the reverse was true during the growth phase. To a limited extent family labour was involved at both the start-up as well as the operation phases of the business; with formal education and prior experience playing an indirect role as far as the human resources mixed were concerned. In terms of information, African immigrant entrepreneurs made use of two primary sources of information namely; their ethnic networks and friends from somewhere else.
    Keywords: South Africa; African immigrants; business start-up resources; SMMEs;framework; self employment
    JEL: A23 A11
    Date: 2011
  5. By: Mekonnen Beyene, Berhe (Dept. of Economics, University of Oslo)
    Abstract: I studied the determinants of migration from urban Ethiopia to other countries, to rural areas and to other urban areas. In general, the result differs by migration type. For international migration, wealth and network variables are found to be important. It is mainly those households who have the network and/or the capacity to finance migration who send household members abroad. Human capital variables like age and education matter only for the two internal migrations. While the social capital theory has strong explanatory power for international migration, the human capital theory is important for internal migration. The NELM is important for all migration types underscoring the importance of the family as a decision unit.
    Keywords: urban; rural; international; migration; Ethiopia
    JEL: F22 O15 R23
    Date: 2011–10–11
  6. By: William Frey; Julie Park
    Abstract: This report seeks to evaluate selective migration processes of Hispanic and Asian nationality groups in the US from established settlement areas, using recent migration data from the American Community Survey. The underlying goal is to detect migration tendencies leading toward an increased dispersion of these groups associated with their migration processes. Using descriptive statistics, maps, and migration models, we assess how migration processes in the 2006-8 period are leading to the dispersal of Hispanic and Asian race ethnic groups across metropolitan areas, with special attention to the roles of co-ethnic communities and spatial assimilation. These analyses employ migration data available from the 3-year 2006-8 American Community Survey using restricted data from the US Census Bureau’s Research Data Centers. This use of the restricted ACS files permitted the first post 2000 analysis of inter-metropolitan migration for Hispanic groups (Mexicans, Puerto Ricans, Cubans, Salvadorans, Dominicans) and Asian groups (Chinese, Indians, Filipinos, Vietnamese, Koreans) using the detailed demographic and geographic attributes available with these files. The data and analysis presented here provide a benchmark for further research of this kind with the American Community Survey in light of the fact that migration data will no longer be available from the US decennial census. The study examines migration from these groups’ major settlement areas to other metropolitan area destinations as they are affected by the attraction of co-ethnic communities and by a migrant selectivity pattern consistent with the perspective of spatial assimilation. The migration processes themselves were evaluated in terms of two components: the out--migration rates of residents, and the destination selection of movers. From the perspective of co-ethnic community attraction, it was hypothesized that the outmigration rates from high co-ethnic settlement areas would be lower than those from areas where the group had a smaller overall presence and that the destination selections of out-migrants would be positively affected by the presence of high co-ethnic population shares in destination areas. From the spatial assimilation perspective, it was hypothesized that out-migration from high coethnic areas would least likely occur for group members with lowest education, poor facility with English, and recently arrived in the US; whereas the selection of destinations with large coethnic population shares would be most likely to occur for these same population categories. The results strongly confirm that co-ethnic community attraction continues to reduce outmigration of groups from major settlement origins and positively influences their destination selections. A series of multivariate migrant destination selection models confirm a consistent draw of ethnically similar destinations across individual Hispanic and Asian groups when other economic, demographic and structural metropolitan attributes are taken into account. In contrast, results regarding spatial assimilation are typically mixed or nonexistent in characterizing both out-migration and mover destination selectivity patterns. In fact, we find contrary evidence for some Asian groups for whom it is the most educated, and native born migrants who show a penchant for selecting destinations with greater co-ethnic population shares. Among the greatest destinations for Indians, for example, are Philadelphia, Seattle, Dallas, Boston and Atlanta- areas with higher than average Indian population shares, and areas that also house knowledge-based industries. The selection of co-ethnic destinations among Hispanic group migrants appears somewhat impervious to education attainment and Hispanic and Mexican group movers, who are foreign born and who arrived since 2000, are least, rather than most, prone to select co-ethnic destinations. The mover destination models make plain that employment growth at destination provides a strong draw for all Hispanic groups. This suggests that recent growth in low skilled jobs in parts of the country with small Hispanic populations are nonetheless attracting newly arrived, and less skilled Mexicans and other Hispanics who might have previously been especially lured to destinations with large co-ethnic population shares.
    Date: 2011–10
  7. By: José V. Blanes (Dep. Economics, Quantitative methods and economic History. University Pablo de Olavide); Francisco Requena (Dept. of Applied Economics. Faculty of Economics. University of Valencia); Guadalupe Serrano (Dept. of Economic Analysis. Faculty of Economics. University of Valencia)
    Abstract: We investigate the effects of an immigration shock, which is still on course, in the productive structure of Spanish regions in a Heckscher-Ohlin framework. Immigration alters relative factor endowment composition across Spanish regions. The persistence of rigidities in the regional labour markets conditions the absorption of this labour supply shock and gives the clues to understand and anticipate future changes in regional labour markets. Moreover, we test the extent of production techniques homogeneity across regions and industries. We provide evidence that immigration had no perverse effects on regional labour markets over the period 1995-2002. Firstly, a large proportion of the observed changes came from a generalised skill biased technological change that decreases primary educated employment. Secondly, there is evidence that supports the existence of a Rybczynksi effect in the factor mix-output mix relationship. Finally, our findings also support the existence of factor price equalisation across Spanish regions.
    Keywords: Immigration, Technological change, Rybczynksi effect, Factor Price Equalisation
    JEL: F16 F22 J61
    Date: 2011–10

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