nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2012‒01‒25
fourteen papers chosen by
Yuji Tamura
Australian National University

  1. Oates' Decentralization Theorem with Household Mobility By Francis Bloch; Unal Zenginobuz
  2. H-1Bs: How Do They Stack Up to US Born Workers? By Lofstrom, Magnus; Hayes, Joseph
  3. Augmenting migration statistics with expert knowledge By Arkadiusz Wisniowski; Nico Keilman; Jakub Bijak; Solveig Christiansen; Jonathan J. Forster; Peter W.F Smith; James Raymer
  4. Migration and Regional Convergence in the European Union By Peter Huber; Gabriele Tondl
  5. Are All Migrants Really Worse Off in Urban Labour Markets? New Empirical Evidence from China By Gagnon, Jason; Xenogiani, Theodora; Xing, Chunbing
  6. Bringing It All Back Home Return migration and fertility choices By Simone BERTOLI; Francesca Marchetta
  7. The contribution of migration to economic development in Holland and the Netherlands 1510-1900 By Peter Foldvari; Bas van Leeuwen; Jan Luiten van Zanden
  8. English Proficiency and Labour Supply of Immigrants in Australia By Vincent Law
  9. Is Reaction to Terrorist Attacks a Localised Phenomenon? By Vincent Law
  10. The Labor Market Integration of Migrants: Barcelona, 1930. By Javier Silvestre; Ma Isabel Ayuda; Vicente Pinilla
  11. The Labor Market Effects of Immigration and Emigration in OECD Countries By Docquier, Frédéric; Ozden, Caglar; Peri, Giovanni
  12. Pitfalls of Immigrant Inclusion into the European Welfare State By Kahanec, Martin; Kim, Anna Myunghee; Zimmermann, Klaus F.
  13. Quality of Work Experience and Economic Development—Estimates using Canadian Immigrant Data By Serge Coulombe; Gilles Grenier; Serge Nadeau
  14. Remesas personales desde y hacia Chile By Álvaro del Real; Alfredo Fuentes

  1. By: Francis Bloch (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X); Unal Zenginobuz (Bogazici Universitesi - {-])
    Abstract: This paper studies how Oates' trade-off between centralized and decentralized public good provision is affected by changes in households' mobility. We show that an increase in household mobility favors centralization, as it increases competition between jurisdictions in the decentralized regime and accelerates migration to the majority jurisdiction in the centralized regime. Our main result is obtained in a baseline model where jurisdictions first choose taxes, and households move in response to taxb levels. We consider two variants of the model. If jurisdictions choose public goods rather than tax rates, the equilibrium level of public good provision is lower, and mobility again favors centralization. If jurisdictions maximize total utility rather than resident utility, the equilibrium level of public good provision again decreases, and mobility favors centralization when the size of the mobile population is bounded.
    Keywords: Oates' decentralization theorem, Fiscal federalism, Household mobility, Spillovers, Tax competition
    Date: 2012–01–09
  2. By: Lofstrom, Magnus (Public Policy Institute of California); Hayes, Joseph (Public Policy Institute of California)
    Abstract: Combining unique individual level H-1B data from U.S. Citizenship and Immigration Services (USCIS) and data from the 2009 American Community Survey, we analyze earnings differences between H-1B visa holders and US born workers in STEM occupations. The data indicate that H-1Bs are younger and more skilled, as measured by education, than US born workers in the same occupations. We fail to find support for the notion that H-1Bs are paid less that observationally similar US born workers; in fact, they appear to have higher earnings in some key STEM occupations, including information technology.
    Keywords: temporary workers, H-1B, immigration, high-skill, STEM
    JEL: J8 J15 J18 J31 J61
    Date: 2011–12
  3. By: Arkadiusz Wisniowski (University of Southampton); Nico Keilman (University of Oslo); Jakub Bijak (University of Southampton); Solveig Christiansen (University of Oslo); Jonathan J. Forster (University of Southampton); Peter W.F Smith (University of Southampton); James Raymer (University of Southampton)
    Abstract: International migration statistics vary considerably from one country to another in terms of measurement, quality and coverage. Furthermore, immigration tend to be captured more accurately than emigration. In this paper, we first describe the need to augment reported flows of international migration with knowledge gained from experts on the measurement of migration statistics, obtained from a multi-stage Delphi survey. Second, we present our methodology for translating this information into prior distributions for input into the Integrated Modelling of European Migration (IMEM) model, which is designed to estimate migration flows amongst countries in the European Union (EU) and European Free Trade Association (EFTA), by using recent data collected by Eurostat and other national and international institutions. The IMEM model is capable of providing a synthetic data base with measures of uncertainty for international migration flows and other model parameters.
    Date: 2012–01
  4. By: Peter Huber (WIFO); Gabriele Tondl
    Abstract: We offer an empirical, econometric analysis of the impact of migration on the EU 27's NUTS-2 regions in the period 2000-2007. While our results indicate that migration had no statistical impact on regional unemployment in the EU it had a significant impact on both per-capita GDP and productivity. The coefficients suggest that a 1 percent increase in immigration to immigration regions increased per-capita GDP by about 0.02 percent and productivity by about 0.03 percent. For emigration regions a 1 percent increase in the emigration rate leads to a reduction of 0.03 percent in per-capita GDP and 0.02 percent in productivity. Since immigration regions are also often regions with above-average GDP and productivity while emigration regions in Europe practically all have below-average GDP, migration seems to induce divergence rather than convergence.
    Keywords: Migration, Convergence, Unemployment
    Date: 2012–01–18
  5. By: Gagnon, Jason (OECD); Xenogiani, Theodora (OECD); Xing, Chunbing (Beijing Normal University)
    Abstract: The rapid and massive increase of rural-to-urban migration in China has drawn attention to the welfare of migrant workers, particularly to their working conditions and pay. This paper uses data from a random draw of the 2005 Chinese national census survey to investigate discrimination in urban labour markets against rural migrants, by comparing their earnings and the sector (formal vs. informal) they work in with those of urban residents and urban migrants. Exploiting differences in their status in the Chinese residential registration system (hukou) we find no earnings discrimination against rural migrants compared with urban residents, contrary to popular belief. In contrast, we find that urban migrants in fact gain a large wage premium by migrating. However, both rural and urban migrants are found to be discriminated out of the formal sector, working in informal jobs and lacking adequate social protection.
    Keywords: migration, China, discrimination, informal employment
    JEL: O15 R23 J24 J71
    Date: 2011–12
  6. By: Simone BERTOLI (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Francesca Marchetta (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: Return migration exerts wide-ranging influence upon the countries of origin of the migrants. We analyze whether returnees adjust their fertility choices to match the norms which prevail in their previous countries of destinations, using Egyptian household-level data. Egyptians migrate predominantly towards other Arab countries characterized by higher fertility rates. Relying on a two-step instrumental variable approach to control for the endogeneity of the migration decisions, we show that return migration has a significant and positive influence on the total number of children. These results suggest that migration might not be an unmitigated blessing for Egypt, as it has contributed to slow down the process of demographic transition.
    Keywords: temporary migration; fertility; household-level data; North Africa; Egypt
    Date: 2012–01–12
  7. By: Peter Foldvari; Bas van Leeuwen; Jan Luiten van Zanden (Utrecht University)
    Abstract: Migration always played an important role in Dutch society. However, little quantitative evidence on its effect on economic development is known for the period before the 20th century even though some stories exist about their effect on the Golden Age. Applying a new dataset on migration and growth for the period 1510-1900 in a system of equations, we find that in the Golden Age, the 18th century, and the 19th century there was a direct positive effect of migration on productivity. However, when taking account of indirect effects via humanand physical capital, only during the Golden Age the net effect of migration on per capita GDP was positive. This seems to confirm those studies that claim that the Golden Age at least partially benefitted from immigration.
    Keywords: Economic growth, Immigration, Holland, endogenous development, Human capital
    Date: 2012–01
  8. By: Vincent Law (Australian National University)
    Abstract: This paper explores the impact of English proficiency on the labour supply of recent immigrants in Australia. While previous research finds that English proficiency is crucial for participation and employment of immigrants, almost no research, and none in Australia, has been done with respect to hours worked by immigrants. The number of hours worked by immigrants is a strong indicator of economic wellbeing. This study uses the second cohort of the Longitudinal Survey of Immigrants to Australia data to estimate a Chamberlain style Tobit random effects estimator. The results suggest a positive relationship between English proficiency and hours worked by immigrants.
    Keywords: Labour Supply, English Proficiency, Australian Immigration, Australian Immigrants
    JEL: C23 C34 O15 J22
    Date: 2011–06
  9. By: Vincent Law (Australian National University)
    Abstract: Research found that the terrorist attack of 9/11 was associated with a temporary decline in US Arab and Muslim men’s weekly earnings and real wages of around 9 to 11 per cent. This has been interpreted as an increase in discrimination against those groups following the attack. However, other evidence shows that in Sweden the terrorist attack did not change Middle East immigrants’ job-searching behavior because of increased discrimination from employers. A possible explanation is that, since 9/11 occurred in the US, the reaction against Arab and Muslim men was more severe there than elsewhere, even though nationals from 90 other countries were also killed. Against this background, the purpose of this paper is to examine the labor market experiences of UK-based Arab and Muslim immigrants. They could have been affected by either 9/11 (that killed 67 UK nationals) or the London bombings of 7th July 2005 (that killed 52 UK nationals), or both. Using Quarterly UK Labor Force Survey data, we explore the labor market outcomes of UK-based Arab and Muslim immigrants following both 9/11 and the London bombings. We estimate two difference-in-differences models — one for 9/11, and the other for the London Bombings and carry out the analysis separately for men and women.
    Keywords: labor discrimination, migration, labor supply, terrorist attacks
    JEL: O15
    Date: 2011–09
  10. By: Javier Silvestre (Faculty of Economics and Business, Universidad de Zaragoza); Ma Isabel Ayuda (Faculty of Economics and Business, Universidad de Zaragoza); Vicente Pinilla (Faculty of Economics and Business, Universidad de Zaragoza)
    Abstract: Very few empirical studies have analyzed the labor market performance of internal migrants in the nineteenth and early twentieth centuries. Using a new dataset, this article examines the occupational attainment of migrants, mostly internal migrants, in the city of Barcelona. We find that, in comparison with natives, the occupational outcome of migrants is partly explained by differences in labor market experience and skills. Nevertheless, other factors also appear to play an important role. Estimates, moreover, do not suggest the existence of improved economic assimilation over time. The results indicate that at least some groups of migrants faced barriers to occupational mobility.
    Keywords: labor market integration, migrants, occupations, historical labor market
    JEL: J24 J61 N34
    Date: 2011–01
  11. By: Docquier, Frédéric (Université catholique de Louvain); Ozden, Caglar (World Bank); Peri, Giovanni (University of California, Davis)
    Abstract: In this paper, we simulate the labor market effects of net immigration and emigration during the 1990's in all OECD countries. To accomplish this, we are the first to employ a comprehensive database of migrant stocks, grouped by education level and country of origin/destination, for the years 1990 and 2000. Due to the much higher international mobility of college graduates, relative to all other individuals, we find that net migration flows are college-intensive, relative to the population of non-migrants. Using the consensus aggregate model of labor demand and supply we simulate the long-run employment and wage effects of immigration and emigration. We use a range of parameter values spanning most of the estimates in the literature. In all cases we find that immigration had a positive effect on the wage of less educated natives. It also increased or left the average native wages unchanged and had a positive or no effect on native employment. To the contrary, emigration had a negative effect on the wage of less educated native workers and it contributed to increase within country inequality in all OECD countries. These results still hold true when we correct for the estimates of undocumented immigrants, for the skill-downgrading of immigrants, when we focus on immigration from non-OECD countries, and when we consider preliminary measures of more recent immigration flows for the period 2000-2007.
    Keywords: immigration and emigration, complementarity, schooling externalities, average wage, wage inequality
    JEL: F22 J61 J31
    Date: 2011–12
  12. By: Kahanec, Martin (Central European University, Budapest); Kim, Anna Myunghee (IZA); Zimmermann, Klaus F. (IZA and University of Bonn)
    Abstract: This paper's main purpose is to gauge immigrants' demand for social assistance and services and identify the key barriers to social and labor market inclusion of immigrants in the European Union. The data from an online primary survey of experts from organizations working on immigrant integration in the EU is analyzed using simple comparative statistical methods; the robustness of the results is tested by means of Logit and ordered Logit statistical models. We find that the general public in Europe has rather negative attitudes towards immigrants. Although the business community views immigrants somewhat less negatively, barriers to immigrant labor market inclusion identified include language and human capital gaps, a lack of recognition of foreign qualifications, discrimination, intransparent labor markets and institutional barriers such as legal restrictions for foreign citizens. Exclusion from higher education, housing and the services of the financial sector aggravate these barriers. Changes in the areas of salaried employment, education, social insurance, mobility and attitudes are seen as most desired by members of ethnic minorities. The current economic downturn is believed to have increased the importance of active inclusion policies, especially in the areas of employment and education. These results appear to be robust with respect to a number of characteristics of respondents and their organizations.
    Keywords: ethnic minorities, migration, labor market integration, economic crisis, enlarged European Union, welfare state
    JEL: J15 J71 J78
    Date: 2011–12
  13. By: Serge Coulombe (Department of Economics, University of Ottawa, Ottawa, ON); Gilles Grenier (Department of Economics, University of Ottawa, Ottawa, ON); Serge Nadeau (Department of Economics, University of Ottawa, Ottawa, ON)
    Abstract: There is increasing evidence in the economic development literature that the quality of schooling considerably varies across countries that are at different stages in their economic development. However, an issue that has been overlooked is the role of the quality of work experience in explaining differences in economic development. This paper uses Canadian census data on immigrant earnings to show that per capita GDP in the country of origin can be used as a quality indicator for both education and work experience. Coefficients estimated from immigrant earnings regressions are then used to estimate the effects of difference in human capital quality on development gaps between rich and poor countries. The analysis shows that while differences in the quality of schooling account for substantial differences in living standards across countries, differences in the quality of work experience can account for even more. Policywise, our results suggest that the immediate effects of improving the quality and the quantity of schooling in less-developed countries might be rather limited if labour-market institutions and ways of doing things are not changed at the same time to improve the quality of work experience.
    Keywords: Quality of human capital, work experience, immigrant earnings, quality of schooling, economic development.
    JEL: O15 J61 J24 O47 O57
    Date: 2011
  14. By: Álvaro del Real; Alfredo Fuentes
    Abstract: Globalization, which involves progressive integration of countries’ economies, has resulted in an increasing number of people moving from one country to another, without losing their ties to their original home economies. Increasingly, immigrants are sending money to their home countries (remittances). These remittances have raised great interest in developing countries, not only because of their signifi cant volume and impact on local economies, but also because of their potential effects on the fi nancial system and on economic development and growth. Chile has not escaped this phenomenon. Although it has not reached levels comparable to those of other Latin American economies, growing immigration from neighboring countries and the emigration process that occurred in past decades have made it necessary to investigate the issue and to measure Chile’s remittance fl ows to and from other countries. This document presents the concept of remittances and classifi cations according to international defi nitions by institutions focused on the subject, such as the World Bank, the CEMLA, the International Monetary Fund and the Group of Luxembourg. It then analyzes the mechanisms of remittance transfers currently used in the world and international experiences regarding sources and estimation methods. The main characteristics of this market in Chile are also shown. Finally, it shows the main results of the surveys carried out yearly between 2007 and 2010. These surveys were applied to money transfer companies working in Chile, which provided information about the transactions made in the period 2005-2009.
    Date: 2011–04

This nep-mig issue is ©2012 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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