nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2012‒05‒15
25 papers chosen by
Yuji Tamura
Australian National University

  1. Life (Dis)satisfaction and the Decision to Migrate: Evidence from Central and Eastern Europe By Vladimir Otrachshenko; Olga Popova
  2. Guest-Worker Migration, Human Capital and Fertility By Leonid V. Azarnert?
  3. Parental Ethnic Identity and Educational Attainment of Second-Generation Immigrants By Simone Schüller
  4. Immigration and the School System By Facundo Albornoz; Antonio Cabrales; Esther Hauk
  5. Immigrant Children's Age at Arrival and Assessment Results By Anthony Heath; Elina Kilpi-Jakonen
  6. Integration of Low-Skilled Immigrants to the United-States and Work-Family Balance By Girard, Magali
  7. Managing Migration and Integration: Europe and the US By Martin, Philip
  8. Outward and Inward Migrations in Italy: A Historical Perspective By Matteo Gomellini; Cormac Ó Gráda
  9. The Impact of Immigration on the Educational Attainment of Natives By Jennifer Hunt
  10. Immigration, Jobs and Employment Protection: Evidence from Europe By Peri, Giovanni; D'Amuri, Francesco
  11. Migration, Remittances and Growth By Nurgul Ukueva
  12. Climatic factors as determinants of International Migration By Michel Beine; Christopher Parsons
  13. Mapping Modes of Rural Labour Migration in China By Sylvie Démurger
  14. Return Migration and the Survival of Entrepreneurial Activities in Egypt By Francesca MARCHETTA
  15. Do Migrant Girls Always Perform Better? Differences between the Reading and Math Scores of 15-Year-Old Daughters and Sons of Migrants in PISA 2009 and Variations by Region of Origin and Country of Destination By Nils Kornder; Jaap Dronkers
  16. Immigration Control & Long-Run Population Welfare By Gurgen Aslanyan
  17. Migrations, public goods and taxes By Jean J. Gabszewicz; Salome Gvetadze; Skerdilajda Zanaj
  18. Welfare State Integration of Immigrants: the Case of Germany By Heckmann, Friedrich
  19. Revisiting the effects of remittances on bank credit: a macro perspective By Richard P.C. Brown; Fabrizio Carmignani
  20. Remittances Channel and Fiscal Impact in the Middle East, North Africa, and Central Asia By Yasser Abdih; Christian Ebeke; Adolfo Barajas; Ralph Chami
  21. Media Exposure and Internal Migration – Evidence from Indonesia By Lidia Farré; Francesco Fasani
  22. Accounting for Big City Growth in Low Paid Occupations: Immigration and/or Service Class Consumption By Ian Gordon; Ioannis Kaplanis
  23. Ambition, Human Capital Acquisition and the Metropolitan Escalator By Ian Gordon
  24. Comparing the treatment provided by migrant and nonmigrant health professionals: dentists in Scotland By Chalkley, Martin; Wang, Shaolin; Tilley, Colin
  25. External income, De-industrialisation and Labour Mobility By Wessel N. Vermeulen

  1. By: Vladimir Otrachshenko; Olga Popova
    Abstract: This paper provides the first evidence regarding the impact of life satisfaction on the individual intention to migrate. The impact of individual characteristics and country macroeconomic variables on the decision to migrate is analyzed in one framework.Differently from other studies, we allow for life satisfaction to serve as a mediator between macroeconomic variables and the intention to migrate. Using the Eurobarometer Survey for 27 Central Eastern (CEE) and Western European (non-CEE) countries, we test the predictions of our theoretical model and find that dissatisfied with life, people have a higher intention to migrate. The macroeconomic conditions have an effect on the intention to migrate indirectly through life satisfaction. At all levels of life satisfaction, unemployed, middle-aged individuals with a low or average income from urban areas at all levels of education are found to have higher intentions to migrate from CEE countries than from non-CEE countries.
    Keywords: life satisfaction; migration; decision making;
    JEL: I31 J61
    Date: 2012–04
  2. By: Leonid V. Azarnert?
    Abstract: This work focuses on a temporary guest-worker-type migration of individuals from the middle class of the wealth distribution. The article demonstrates that the possibility of a low-skilled guest-worker employment in a higher wage foreign country lowers the relative attractiveness of the skilled employment in the home country. Thus it prevents a fraction of individuals from acquiring human capital. Therefore, even if all individuals who acquired education remain in the home country, the actual number of educated workers in the source economy decreases, and the aggregate level of human capital in this economy would thus be negatively affected.
    Keywords: Migration, Human Capital, Fertility, Brain Drain, Economic Growth
    JEL: F22 F43 J13 J24 J61 O15
    Date: 2011–09
  3. By: Simone Schüller
    Abstract: A lack of cultural integration is often blamed for hindering immigrant families' economic progression. This paper is a first attempt to explore whether immigrant parents' ethnic identity affects the next generation's human capital accumulation in the host country. Empirical results based on data from the German Socio-Economic Panel (SOEP) indicate that maternal majority as well as paternal minority identity are positively related to the educational attainment of second-generation youth - even controlling for differences in ethnicity, family background and years-since-migration. Additional tests show that the effect of maternal majority identity can be explained by mothers' German language proficiency, while the beneficial effect of fathers' minority identity is not related to language skills and thus likely to stem from paternal minority identity per se.
    Keywords: Ethnic Identity, Second-Generation Immigrants, Education
    JEL: I21 J15 J16
    Date: 2012
  4. By: Facundo Albornoz; Antonio Cabrales; Esther Hauk
    Abstract: Immigration is an important problem in many societies, and it has wide-ranging effects on the educational systems of host countries. There is a now a large empirical literature, but very little theoretical work on this topic. We introduce a model of family immigration in a frame- work where school quality and student outcomes are determined endogenously. This allows us to explain the selection of immigrants in terms of parental motivation and the policies which favor a positive selection. Also, we can study the effect of immigration on the school system and how school quality may self-reinforce immigrants' and natives' choices.
    Keywords: education, immigration, school resources, parental involvement, immigrant sorting
    JEL: I20 I21 I28 J24 J61
    Date: 2011–11
  5. By: Anthony Heath; Elina Kilpi-Jakonen
    Abstract: While a number of single-country studies have been done to explore whether or not there is a “critical age” at which the arrival in a new country becomes a steep disadvantage to the immigrant student, this study aims to determine whether the steepness of the age-at-arrival/test score profile varies across origin or destination countries. As expected, the later the arrival, the greater the penalty. However results vary according to several factors, including language differences and whether the country of origin had higher or lower educational standards. Evidence shows the importance of helping young migrants with language difficulties, as well as with the subsequent adverse effects of these difficulties.<BR>Tandis qu’un certain nombre d’études nationales ont été réalisées afin de déterminer s’il existe ou non un « âge critique » auquel l’arrivée dans un nouveau pays constitue un désavantage important pour les élèves immigrés, la présente étude tente d’analyser si le profil âge d’arrivée/résultats à l’évaluation varie en fonction du pays d’origine et du pays d’accueil. Comme escompté, plus l’arrivée est tardive, plus le désavantage est important. Les résultats varient cependant en fonction de plusieurs facteurs, notamment des différences linguistiques et du niveau (supérieur ou inférieur) des normes éducatives du pays d’origine. Les données recueillies montrent l’importance d’aider les jeunes migrants à faire face aux difficultés linguistiques auxquelles ils sont confrontés ainsi qu’aux effets négatifs qui peuvent en résulter.
    Date: 2012–05–02
  6. By: Girard, Magali
    Abstract: The role played by immigrants in the American economy is well documented and, to a lesser extent, the effect of the migration experience on the families of immigrants. However, little is known of the connections between work and family when it comes to immigrants, especially immigrants in low-skilled jobs, whether it is the effect of labour market experiences on the family or the effect of family patterns on integration into the labour market. Yet, the issue of balancing personal life with professional responsibilities is of growing interest among scholars and policy makers, given the increasing participation of women in the labour market, the increase in non-standard work and the high proportion of immigrants in these work arrangements. 
    Keywords: Sociology, Applied Economics, Economics, General, Ethnic, Cultural Minority, Gender, and Group Studies, family life, immigration, low skilled labor, economics, united states
    Date: 2012–03–03
  7. By: Martin, Philip
    Abstract: Most Americans and Europeans in opinion polls say that governments are doing a poor job of selecting wanted newcomers, preventing the entry and stay of unwanted foreigners, and integrating settled immigrants and their children. This seminar reviewed the evidence, asking about the economic and socio-political integration of low-skilled immigrants and their children. The context for links between immigration and integration is that most European nations have shrinking populations and extensive welfare states that provide support to the elderly and poor from the contributions of currently employed workers. If immigrants and their children add to employment, they can achieve the higher wages and more opportunities most sought inEuropeand help to preserve generous welfare states. However, if immigrants and their children are mostly jobless or out of the labor force, they may add burdens to welfare states.
    Keywords: Area Studies, European Studies/Civilization, American/United States Studies/Civilization, migration, workers, economics, immigration
    Date: 2012–03–09
  8. By: Matteo Gomellini (Bank of Italy); Cormac Ó Gráda (University College of Dublin)
    Abstract: This work focuses on some economic aspects of the two main waves of Italian emigration (1876-1913 and post-1945) and of the immigration of recent years. First, we examine the characteristics of migrants. Second, for the period 1876-1913 we investigate the determinants of emigration using a new dataset that allows us to control for regional fixed effects. In this context, the role of the networks formed by once migrated in shaping early twentieth-century Italian emigration results enhanced (30 per cent higher than previously found). Third, we analyze the consequences of emigration for those left behind. A particular concern is whether emigration as a whole raised the living standards of those who stayed and whether it promoted interregional convergence within Italy. Our simulation exercises suggest that in the long run emigration accounted for a share of 4-5 per cent of the total per capita GDP growth; the contribution at the South was twofold with respect to the North. In the recent past Italy has become a country of net immigration. We explore nowadays&#x2019; immigration in the light of our findings on earlier Italian emigration, focusing on the links with the economic activity, the labor market, the balance of payments, crime and public opinion, on the other.
    Keywords: migration determinants, migration effects, self-selection, public perception
    JEL: N0 F22
    Date: 2011–10
  9. By: Jennifer Hunt
    Abstract: Using a state panel based on census data from 1940-2010, I examine the impact of immigration on the high school completion of natives in the United States. Immigrant children could compete for schooling resources with native children, lowering the return to native education and discouraging native high school completion. Conversely, native children might be encouraged to complete high school in order to avoid competing with immigrant high-school dropouts in the labor market. I find evidence that both channels are operative and that the net effect is positive, particularly for native-born blacks, though not for native-born Hispanics. An increase of one percentage point in the share of immigrants in the population aged 11-64 increases the probability that natives aged 11-17 eventually complete 12 years of schooling by 0.3 percentage points, and increases the probability for native-born blacks by 0.4 percentage points. I account for the endogeneity of immigrant flows by using instruments based on 1940 settlement patterns.
    JEL: J15
    Date: 2012–05
  10. By: Peri, Giovanni; D'Amuri, Francesco
    Abstract: In this paper we analyze the effect of immigrants on native jobs in fourteen Western European countries. We test whether the inflow of immigrants in the period 1996-2007 decreased employment rates and/or if it altered the occupational distribution of natives with similar education and age. We find no evidence of the first but significant evidence of the second: immigrants took “simple†(manual-routine) type of occupations and natives moved, in response, toward more “complex†(abstract-communication) jobs. The results are robust to the use of an IV strategy based on past settlement of different nationalities of immigrants across European countries. We also document the labor market flows through which such a positive reallocation took place: immigration stimulated job creation, and the complexity of jobs offered to new native hires was higher relative to the complexity of destructed native jobs. Finally, we find evidence that the occupation reallocation of natives was significantly larger in countries with more flexible labor laws. This tendency was particularly strong for less educated workers.
    Keywords: European Studies/Civilization, International Economics, Applied Economics, Immigration, Task specialization, European Labor Markets
    Date: 2010–06–30
  11. By: Nurgul Ukueva
    Abstract: This paper analyzes the effect of migration and remittances on a small, open, migrant-sending country in the context of an endogenous growth model with technology transfers. The paper demonstrates that, due to a dynamic feedback effect from economic conditions to migration and from migration to economic development in an economy exposed to migration, initial conditions can determine its long-run steady state, leading to the rise of vicious or virtues circles of development. Countries with a low level of technological development may end up in a poverty trap, in which a low level of development results in low wage rates and consequently high migration rates. The high migration and loss of manpower in a general equilibrium generates less demand for the adoption of leading technologies, reducing incentives to invest into new technologies. This reduced incentive effect in turn leads to low output and low wages and even higher migration next period. Potentially, as in the case of depopulated countries and regions the economy diverges from the world’s growth rate and eventually ends up being emptied out. The poverty trap with migration is possible even with the possibility of transfer of foreign technologies and for an economy that was converging to the world’s growth rate absent migration. Altruistic remittances as an important by-product of migration allow people to share the benefits of technological advances developed elsewhere and dampen the negative impact of migration. In particular, remittances remove the limiting case of emptying out of the economy and reduce the chances of ending up in a poverty trap.
    Date: 2011–09
  12. By: Michel Beine (University of Luxembourg and IRES, CREAM and CES-Ifo); Christopher Parsons (University of Nottingham, UK)
    Abstract: In this paper, we examine environmental factors as potential determinants of inter- national migration. We distinguish between unexpected short-run factors, captured by natural disasters, as well as long-run climate change and climate variability captured by deviations and volatilities of temperatures and rainfall from and around their long-run averages. We start from a simple neo-classical model, which is augmented to include environmental factors at origin in the form of amenities. We then test the model us- ing a panel dataset of bilateral migration flows for the period 1960-2000, the time and dyadic dimensions of which additionally allow us to control for numerous time-varying and time invariant factors. Using our primary specification, having accounted for other well documented determinants of migration, we find no direct impact of climatic change on international migration in the medium to long run across our entire sample. These results are robust when further considering migrants returning home. Conditioning our regressions upon origin country characteristics, we find evidence that shortfalls in precip- itation constrain migration to developing countries from those which rely more heavily upon agriculture and spur movements to developing countries from those with fewer groundwater reserves. We further use the rate of urbanization as a proxy for internal migration and find strong evidence that natural disasters beget greater flows of migrants to urban environs.
    Keywords: International Migration, Climate change, Natural disasters, Income Maximization
    JEL: F22 O15
    Date: 2012
  13. By: Sylvie Démurger (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France)
    Abstract: Internal labour migration has become an important part of the process of China’s industrialization and urbanisation in the 2000s. Using micro data for the year 2007, this chapter attempts to contribute to a better understanding of the motives of and the constraints to labour mobility in China. Drawing on various empirical investigations at the household level, it examines both the decision and the level of migration and provides a mapping of the main factors driving different types of labour mobility across space (by destination) and time (by duration).
    Keywords: rural-urban migration, destination, duration, migration networks, China
    JEL: O15 R23 D13 O53
    Date: 2012
  14. By: Francesca MARCHETTA (Centre d'Etudes et de Recherches sur le Développement International)
    Abstract: The literature shows that temporary international migrants have a high propensity to opt for an entrepreneurial activity upon return, but the prospects of survival of these activities have not been explored. We address this research question using longitudinal Egyptian data. We find that entrepreneurs' migration experience significantly improves the chances of survival of their entrepreneurial activities, adopting econometric techniques that control for return migrants' non-random selection in unobservables. We resort to a bivariate probit model and a two-stage residual inclusion estimator, using the rate of population growth and the real oil price as alternative instruments for migration.
    Keywords: return migration, entrepreneurial activities, panel data, endogeneity, North Africa, Egypt
    Date: 2012
  15. By: Nils Kornder (University of Maastricht); Jaap Dronkers (University of Maastricht)
    Abstract: As a follow-up of earlier analyses of the educational performance of all pupils with a migration background with Programme for International Student Assessment (PISA) waves 2003 and 2006, we analyze the differences between the educational performance of 15-year old daughters and sons of migrants from specific regions of origin countries living in different destination countries. We use the newest PISA 2009 wave. Instead of analyzing only Western countries as destination countries, we analyze the educational performance of 16,612 daughters and 16,804 sons of migrants in destination countries across Asia, Europe, Latin America, and Oceania. We distinguish 62 origin countries and 12 origin areas in 30 destination countries. We test three hypotheses: 1) The daughters of migrants from poorer, more traditional regions perform much better in reading than comparable sons of migrants from the same origin regions, while the daughters of migrants from more affluent and liberal regions perform slightly better in reading than comparable sons of migrants from the same regions. 2) Individual socioeconomic background has a stronger effect on the educational performance of daughters of migrants than on the performance of sons of migrants. 3) The performance of female native pupils has a higher influence on the performance of migrant daughters than the performance of male native pupils has on the performance of migrant sons. The first hypothesis can only partly be accepted. Female migrant pupils have both higher reading and math scores than comparable male migrant pupils, and these gender differences among migrant pupils are larger than among comparable native pupils. The additional variation in educational performance by region of origin is, however, not clearly related to the poverty or traditionalism of regions. Neither the second nor the third hypothesis can be accepted, given our results.
    Date: 2012–05
  16. By: Gurgen Aslanyan
    Abstract: The current study assesses the effects of immigration control on the welfare of the current and future population of a host economy. A theoretical model of a small open economy populated with overlapping generations of heterogeneous agents is used to show that skillfavouring immigration policies are, under rather permissive conditions, welfare depriving for the overall population. However, the policy-setting generation is shown to benefit from immigration control, thus decreasing the welfare for the future population.
    Keywords: immigration control; intergenerational redistribution; social security;
    JEL: J18 F22 E24 H55 J15 E61
    Date: 2012–02
  17. By: Jean J. Gabszewicz (CORE Université catholique de Louvain); Salome Gvetadze (CREA, University of Luxembourg); Skerdilajda Zanaj (CREA, University of Luxembourg)
    Abstract: This paper examines how and why people migrate between two re- gions with asymmetric size. The agglomeration force comes from the scale economies in the provision of local public goods, whereas the disper- sion force comes from congestion in consumption of public goods. Public goods considered resemble club goods (or public goods with congestion) and people are heterogeneous in their migration costs. We find that the large countries can be destination of migrants for sufficiently high provision of public goods, even when the large country taxes too much. The high provision of public good offsets the congestion effect. While, the small country can be the destination of migrants for two reasons. Firstly, when public good supply is intermediate, people move to avoid congestion in the large country and to benefit from low taxation in the small one. Finally, when the provision of public goods is low, people move towards the small countries just to avoid congestion.
    Keywords: Migration, public goods, congestion.
    JEL: H0 F3
    Date: 2011
  18. By: Heckmann, Friedrich
    Abstract: Why doesGermany– in contrast to theUS– have a system of integration policies? I begin with the hypothesis that societies have certain basic ways of securing general macro – social, societal integration and of tackling social problems and tensions. Thesemodes of dealing with tensions and social problemsderive from fundamental principles and values of the social order. In the tradition of the German welfare state philosophy starting with Bismarck, the contemporary Soziale Marktwirtschaft is a system of economic, social and political relations that is a basic element of the social order in Germany: an interventionist welfare state to reduce tensions and to help provide social security, social justice and improve opportunities for disadvantaged groups and in general to prevent social exclusion. When a new social problem arose – immigrant integration – the approach was that used to deal with other social problems, i. e. by means of the welfare state. As a result, migrants have always been included in the major welfare system institutions (health insurance, unemployment insurance and pensions), with systematic special integration policies  added afterGermanyaccepted its status as an immigration country.
    Keywords: European Studies/Civilization, Ethnic, Cultural Minority, Gender, and Group Studies, Political Science and Government, General, Demography and Population Studies, integration, germany, immigration, welfare state
    Date: 2012–03–09
  19. By: Richard P.C. Brown (School of Economics, The University of Queensland); Fabrizio Carmignani (School of Economics, The University of Queensland)
    Abstract: We investigate the effect of remittances on bank credit in developing countries. Understanding this link is important in view of the growing relevance of remittances as a source of external finance and of the beneficial impact that financial intermediation is likely to have on economic growth. Using a simple theoretical formalization, we predict the relationship to be U-shaped. We test this prediction using panel data for a large group of developing and emerging economies over the period 1960-2009. The empirical results suggest that at initially low levels of remittances, an increase in remittances reduces the volume of credit extended by banks. However, at sufficiently high levels of remittances, the effect becomes positive. The turning point of the relationship occurs at a level of remittances of about 2.5% of GDP.
    Date: 2012
  20. By: Yasser Abdih; Christian Ebeke; Adolfo Barajas; Ralph Chami
    Abstract: This paper identifies a remittances channel that transmits exogenous shocks, such as business cycles in remittance-sending countries, to the public finances of remittance-receiving countries. Using panel data for remittance-receiving countries in the Middle East, North Africa, and Central Asia, three types of results emerge. First, remittances appear to be strongly procyclical vis-à-vis sending country income. Second, remittances tend to be spent on consumption of both imported and domestically produced goods, rather than on investment. Third, shocks in the sending countries are transmitted via remittances to the public finances - specifically, tax revenues - of receiving countries. In the case of the 2009 global downturn, this impact was particularly strong for several countries in the Caucasus and Central Asia, whereas in the subsequent recovery in 2010 virtually all receiving countries benefitted from an upturn in remittance-driven tax revenues.
    Keywords: Business cycles , Capital inflows , Cross country analysis , Demand , External shocks , Middle East and Central Asia , North Africa , Private consumption , Tax revenues , Workers remittances ,
    Date: 2012–04–25
  21. By: Lidia Farré; Francesco Fasani
    Abstract: This paper investigates the impact of television on internal migration in Indonesia. We exploit the differential introduction of private television throughout the country and the variation in signal reception due to topography to estimate the causal effect of media exposure. Our estimates reveal important long and short run effects. An increase of one standard deviation in the number of private TV channels received in the area of residence reduces future inter-provincial migration by 1.7-2.7 percentage points, and all migration (inter and intra-provincial) by 4-7.4 percentage points. Short run effects are slightly smaller, but still sizeable and statistically significant. We also show that respondents less exposed to private TV are more likely to consider themselves among the poorest groups of the society. As we discuss in a stylized model of migration choice under imperfect information, these findings are consistent with Indonesia citizens over-estimating the net gains from internal migration.
    Keywords: Information; Migration decisions; Television
    JEL: J61 L82 O15
    Date: 2011–09
  22. By: Ian Gordon; Ioannis Kaplanis
    Abstract: Growth of 'global cities' in the 1980s was supposed to have involved an occupational polarisation, including growth of low paid service jobs. Though held to be untrue for European cities, at the time, some such growth did emerge in London a decade later than first reported for New York. The question is whether there was simply a delay before London conformed to the global city model, or whether another distinct cause was at work in both cases. This paper proposes that the critical factor in both cases was actually an upsurge of immigration from poor countries providing an elastic supply of cheap labour. This hypothesis and its counterpart based on growth in elite jobs are tested econometrically for the British case with regional data spanning 1975-2008, finding some support for both effects, but with immigration from poor countries as the crucial influence in late 1990s London.
    Keywords: regional labour markets, wages, employment, international migration, consumer demand
    JEL: J21 J23 F22 R12
    Date: 2012–04
  23. By: Ian Gordon
    Abstract: This paper examines the relation between ambition, as a form of dynamic human capital, and the escalator role of high order metropolitan regions, as originally identified by Fielding (1989). It argues that occupational progression in such places particularly depends on concentrations both of people with more of this asset and of jobs offering preferential access to valued elements of tacit knowledge, interacting in thick, competitive labour markets. This is partially confirmed with analyses of BHPS data on long term progression showing that only the more ambitious gain from residence in the extended London region, and that they only progress faster there.
    Keywords: Escalator region, migration, urban labour market, London, social mobility, human capital
    JEL: J24 J61 J62 R23
    Date: 2012–04
  24. By: Chalkley, Martin; Wang, Shaolin; Tilley, Colin
    Abstract: Many OECD countries are increasingly relying on migrants to address shortages of trained health professionals. One key concern is whether migrant health professionals provide equivalent health care. We compare the treatment provided by migrant and non-migrant health professionals using administrative data from the Scottish dental system. A difference-in-differences model is estimated to examine whether migrant dentists respond differently to case mix and individual circumstances as compared with their non-migrant counterparts, and assess the extent to which any differences diminish over time. After controlling for both observed and unobserved differences between individual dentists and the cohort of patients that they treat, we find that migrant dentists have marginally different practice styles, and the variation diminishes over time within two years of practice.
    Keywords: Migrant health professionals, Treatment difference, Assimilation, British NHS, Administrative data,
    Date: 2011
  25. By: Wessel N. Vermeulen (CREA, University of Luxembourg)
    Abstract: Relaxing the assumption of fixed labour in a general equilibrium model studying the impact of resource income on the allocation of labour across sectors offers insights on how labour mobility may mitigate adverse effects such as de-industrialisation caused by resource income. The theoretical model suggests clear signs of the impact of labour (downward) and the resource income (upward) on the relative size of the service sector. Indirect effects are visible through the interactions of both variables on each other. The model is estimated in a fixed effect panel model, which offers support to the model’s direct and indirect effects.
    Keywords: Booming sectors, Migration, de-industrialisation
    JEL: C33 J61 L16 Q33
    Date: 2011

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