nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2012‒05‒29
nineteen papers chosen by
Yuji Tamura
Australian National University

  1. Human Trafficking and Regulating Prostitution By Samuel Lee; Petra Persson
  2. Sale of Visas: A Smuggler's Final Song? By Auriol, Emmanuelle; Mesnard, Alice
  3. New insights into the selection process of Mexican migrants.What can we learn from discrepancies between intentions to migrate and actual moves to the U.S.? By Isabelle Chort
  4. Migration Networks in Senegal By Isabelle Chort
  5. Are Better Educated Migrants Returning? Evidence from Multi-Dimensional Education Data By Enel Pungas; Ott Toomet; Tiit Tammaru; Kristi Anniste
  6. The impact of financial literacy training for migrants By Gibson, John; McKenzie, David; Zia, Bilal
  7. Income Inequality and Health: Lessons from a Refugee Residential Assignment Program By Grönqvist, Hans; Johansson, Per; Niknami, Susan
  8. The Role of Borders, Languages, and Currencies as Obstacles to Labor Market Integration By Bartz, Kevin; Fuchs-Schündeln, Nicola
  9. Productivity in innovation: the role of inventor connections and mobility By Favaro, Donata; Ninka, Eniel; Turvani, Margherita
  10. Poverty and Program Participation among Immigrant Children By Borjas, George J.
  11. Unemployment of immigrants and natives over the business cycle: evidence from the Austrian labor market By Nora Prean; Karin Mayr
  12. A "Glass-Ceiling" Effect for Immigrants in the Italian Labour Market? By Dell'Aringa, Carlo; Lucifora, Claudio; Pagani, Laura
  13. Which immigrants stimulate exports in their host country? (en homenaje a José Vicente Blanes) By Francisco Requena; Vicente Pallardó; Andrés Artal
  14. International Migration and the European Union Relations in the Context of a Comparison of Western Balkans and North African Countries: Controlling Migration and Hybrid Model By Aliu, Armando
  15. Do Local Amenities Affect the Appeal of Regions in Europe for Migrants? By Ketterer, Tobias; Rodríguez-Pose, Andrés
  16. Does Immigration into Their Neighborhoods Incline Voters Toward the Extreme Right? The Case of the Freedom Party of Austria By Martin Halla; Alexander F. Wagner; Josef Zweimüller
  17. Skill-biased technological change, unemployment and brain drain By Harald Fadinger; Karin Mayr
  18. The French Unhappiness Puzzle: the Cultural Dimension of Happiness By Claudia Senik
  19. L'emigrazione italiana nell'Africa mediterranea By Antonio Cortese

  1. By: Samuel Lee; Petra Persson
    Date: 2012
  2. By: Auriol, Emmanuelle; Mesnard, Alice
    Abstract: We study how smugglers respond to different types of migration policies - legalisation through the sale of migration visas, or more traditional repressive policies through borders' enforcement, employers' sanctions or deportation - by changing the price they propose to illegal migrants. In this context a government that aims at eradicating smugglers and controlling migration flows faces a trade-off. Eliminating smugglers by the sale of visas increases the flows of migrants and may worsen their skill composition. In contrast, repressive policies decrease the flows of illegal migrants and may improve their skill composition but do not eliminate smugglers. We then study how a combination of increased repression -through reinforced external and internal controls- and sale of visas may be effective at eliminating smugglers and controlling migration flows while not weighing on public finances. Simulations allow us to quantify the partial equilibrium effects of the policies under study.
    Keywords: legalisation; market structure; migration; migration policies
    JEL: F22 I18 L51 O15
    Date: 2012–05
  3. By: Isabelle Chort (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: Comparing intentions to migrate and actual migration of Mexicans, I intend to assess the impact of unexpected shocks and misevaluated costs on the materialization of migration plans. I show that both sets of reasons may explain discrepancies between intentions and subsequent actions without denying the rationality of intentions by resorting to the theoretical framework of the Roy model. I use intention and migration data from the Mexican Family Life Survey, together with precipitations monthly series, hurricane and crime data to represent different sets of shocks. Correlations between intentions and migration on the one hand, and between intentions and individual labor market characteristics show that intentions are not devoid of informational content. Then, modelling intentions and migration with a bivariate probit, I find that shocks, and in particular rainfall and hurricanes, affect the probability to migrate conditional on initial intentions. The key finding is nonetheless the much lower propensity for women to migrate abroad conditional on intentions, which suggests that women incur specic costs or constraints misestimated at the intention stage. Alternative explanations, such as gendered preferences are discussed, but convergent empirical evidence suggest that women are more constrained than men on the international migration market. Moreover the data suggest that migrants are positively selected with respect to their unobserved characteristics whereas those with intention to migrate abroad are negatively selected. The shift in selection between the two stages of the migration process may be due to the cost reducing effect of individuals' unobserved characteristics that explain their higher local wages. Mots-clés : Migration, Roy model, migrant self-selection, subjective data, shocks, Mexico
    Keywords: Migration ; Roy Model ; Migrant Self-Selection ; Subjective Data ; Shocks ; Mexico
    Date: 2012–04
  4. By: Isabelle Chort (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: This paper investigates the importance and role of migration networks in Senegal using a new nationally representative survey conducted in 2006-2007. Using a sample of 1707 Senegalese households I explore potentially differential effects of networks on international migration depending on their characteristics in terms of composition and destination. Results from logit and multinomial logit regressions show that household networks seem to be destination-specific and have a greater positive influence on migration than community networks. Networks also seem to have heterogeneous effects on migration depending on gender, household wealth or size which is consistent with previous findings in the literatureand backs up a networks effects story.
    Keywords: Migration ; Migrant Networks ; Senegal
    Date: 2012–04
  5. By: Enel Pungas (University of Tartu); Ott Toomet (University of Tartu); Tiit Tammaru (University of Tartu); Kristi Anniste (University of Tartu)
    Abstract: This study examines the relationship between migrants' education and their intentions to return. Previous research has presented mixed evidence on the association between the level of education and return migration. This study takes a multidimensional approach by analysing, aside from the level of education, the type and country of education and over-education as predictors of intentions to return based on a unique survey of Estonian migrants in Finland. The results indicate that the level of education is not related to the tendency to return. The most important education variable that shapes return migration is over-education ―migrants who work below their training express higher intentions to return back home. We also find some evidence that education obtained in the host country improves the socialisation prospects later on.
    Keywords: Education, return migration, East-West migration, Estonia, Finland
    Date: 2012–05
  6. By: Gibson, John; McKenzie, David; Zia, Bilal
    Abstract: Remittances are a major source of external finance for many developing countries but the cost of sending remittances remains high for many migration corridors. International efforts to lower costs by facilitating the entry of new financial products and new cost comparison information sources rely heavily on the financial literacy of migrants. This paper presents the results of a randomized experiment designed to measure the impact of providing financial literacy training to migrants. Training appears to increase financial knowledge and information seeking behavior and reduce the risk of switching to costlier remittance products. But it does not change either the frequency or level of remittances.
    Keywords: Financial Literacy,Access to Finance,Remittances,Population Policies,Education For All
    Date: 2012–05–01
  7. By: Grönqvist, Hans (SOFI, Stockholm University); Johansson, Per (IFAU); Niknami, Susan (SOFI, Stockholm University)
    Abstract: This paper examines the effect of income inequality on health for a group of particularly disadvantaged individuals: refugees. Our analysis draws on longitudinal hospitalization records coupled with a settlement policy where Swedish authorities assigned newly arrived refugees to their first area of residence. The policy was implemented in a way that provides a source of plausibly random variation in initial location. The results reveal no statistically significant effect of income inequality on the risk of being hospitalized. This finding holds also for most population subgroups and when separating between different types of diagnoses. Our estimates are precise enough to rule out large effects of income inequality on health.
    Keywords: income inequality, immigration, quasi-experiment
    JEL: I10 J15
    Date: 2012–05
  8. By: Bartz, Kevin; Fuchs-Schündeln, Nicola
    Abstract: Based on a modified Spatiotemporal Autoregressive Model (STAR), we analyze whether borders still constitute significant impediments to labor market integration in the European Union, despite the formal law of free movement of labor. Using regional data from the EU-15 countries over 21 years, we find that this is the case. We further investigate whether the abolishment of border checks through the Schengen agreement or the introduction of the Euro improved our measure of labor market integration across borders, and do not find evidence in favor. Last, we investigate the role of languages, and potentially cultures, as obstacles to labor market integration. We find that indeed language borders play a larger role than country borders in explaining the lack of labor market integration across borders.
    Keywords: European integration; labor market integration; spatial econometrics
    JEL: C4 J4 J6
    Date: 2012–05
  9. By: Favaro, Donata; Ninka, Eniel; Turvani, Margherita
    Abstract: We study the transmission of knowledge arising from working relationships established by inventors, and its impact on firms’ innovation production. The study’s contribution to the literature is twofold. First, we consider those relationships that originate through inventor connections (”multi-applicant” inventors) and inventor mobility. Second, we analyse their effect on companies’ innovation production. The study focuses on the role played by geographical proximity, and the dynamic effects of knowledge flows. The geographical question is dealt with on a detailed level, by measuring knowledge spillovers observed within the same Local Labour System (LLS), between different LLSs of the region and, finally, with extra-regional LLSs. Dynamics are captured by measuring inventor mobility and connections occurring up to 20 years before patent filing. The analysis is carried out on the Italian region of Veneto and is based upon the original OECD REGPAT database of patent applications filed at the European Patent Office. The manual procedure we used to clean the data allows us to resolve some issues raised in the literature. Our results show that the impact of working relationships on innovation production depends on both geography and dynamics. Therefore, we can not conclude that productivity effects of knowledge flows occurring through the labour market are localized. However, we can conclude that working relationships have sizable productivity effects on innovation, either in the short or in the long run, depending on the geographical distance.
    Keywords: labour mobility; inventor connections; knowledge diffusion; innovation; geographical proximity;
    JEL: J61 J24 O3
    Date: 2012–05–20
  10. By: Borjas, George J.
    Abstract: Researchers have long known that poverty in childhood is linked with a range of negative adult socioeconomic outcomes, from lower educational achievement and behavioral problems to lower earnings in the labor market. But few researchers have explored whether exposure to a disadvantaged background affects immigrant children and native children differently. George Borjas uses Current Population Survey (CPS) data on two specific indicators of poverty—the poverty rate and the rate of participation in public assistance programs—to begin answering that question. He finds that immigrant children have significantly higher rates both of poverty and of program participation than do native children.
    Date: 2011
  11. By: Nora Prean (University of Vienna); Karin Mayr (University of Vienna)
    Abstract: We analyze differences in unemployment between natives and immigrants over the business cycle. Using matched employer-employee data for Austria, we find that immigrants' unemployment rate and flows into and out of unemployment are significantly more sensitive to labor market shocks than those of comparable natives. This is particularly true for immigrants from outside the European Economic Area. We find that our results are not driven by a potential selection of immigrant workers into specific industries or temporary jobs.
    Keywords: Unemployment rate; Immigration, Guestworker, Immigrant Labor
    JEL: J64 J61
    Date: 2012–05
  12. By: Dell'Aringa, Carlo (Università Cattolica del Sacro Cuore); Lucifora, Claudio (Università Cattolica del Sacro Cuore); Pagani, Laura (University of Milan Bicocca)
    Abstract: This paper investigates earnings differentials between immigrants and natives. We focus on returns and on the (imperfect) international transferability of human capital. Data are drawn from the 2009 Italian Labour Force Survey (LFS). We show that returns to human capital are considerably lower for immigrants as compared to natives and that there is no return to pre-immigration work experience, suggesting imperfect transferability of human capital. We also explored the role of human capital, for immigrants and natives, in explaining inter-occupational and intra-occupational earnings progression (differentials). Our findings suggest that the returns on human capital (main source of wage progression) for immigrants (is) are mainly driven by intra-occupational earnings progression. Moreover, and contrary to what is observed for natives, we detect through quantile analysis a "glass-ceiling" effect for immigrant workers, who appear to face a large penalty in accessing high paying occupations. A number of robustness checks confirm our main results.
    Keywords: migration, earnings, human capital portability, occupational attainment, wage differentials, human capital
    JEL: J31 J24 J61 F22
    Date: 2012–05
  13. By: Francisco Requena (Universidad de Valencia); Vicente Pallardó (Universidad de Valencia); Andrés Artal (Universidad Politécnica de Cartagena)
    Abstract: We use province migration-trade panel data to examine the importance of geographic proximity in the effectiveness of ethnic networks on bilateral trade. Empirical findings from the gravity model show that the migration-trade link is clearly in-province: exports from a province to a country do not receive any stimuli from immigrants from this country living outside of the province, once we control for country-province time-invariant fixed effects.
    Keywords: province-level exports, immigration, ethnic networks, gravity
    JEL: C23 F22 O24
    Date: 2012–05
  14. By: Aliu, Armando
    Abstract: This study investigates migration flows from Western Balkans and North African countries to the high-income countries of the EU. Migration and asylum issues were analysed with taking into account empirical, analytical and political comparisons of Western Balkans and North African countries from the triple win solution point of view. The research attempts to emphasize Western Balkans migration experience in order to respond how to manage and/or control chaotic migration with respect to North African countries. In addition, the EU enlargement and neighbourhood policies have significant effects on EU migration dynamics of demographic change (i.e. ageing population) and convergence/divergence of EU member states’ migration priorities. In this context, the role of the triangle (hybridity) – state, private and civil society in migration research ought to be argued to verify whether a controlling migration by an ideal hybrid structure and decentralisation will be more effective and accurate or not? The research presents dialectics of triple win approach and hybrid model (i.e. home country-state, host country-private, and civil society-migrants) with using governance models. The main argument was tested methodologically through using case study research, grounded theory, constructivist and normative approaches.
    Keywords: Hybrid Model; Controlling Migration; Social Transformation; Western Balkans; North Africa; Decentralisation
    JEL: F22 O15 R5 R23 A14 F24
    Date: 2012–05–21
  15. By: Ketterer, Tobias; Rodríguez-Pose, Andrés
    Abstract: This paper delves into the factors which determine the attractiveness of regions in Europe for migrants. Contrary to the literature on the US which has increasingly focused on the role of amenities, existing research in Europe tends to highlight the predominance of economic conditions as the main drivers of migration. Differentiating between economic, socio-demographic and amenity-related territorial features, we examine the appeal of various regional characteristics for migrants by analyzing net migration data for 133 European regions between 1990 and 2006. Our results show that, in addition to economic, human capital-related and demographic aspects, network effects and – in contrast to existing literature – different types of regional amenities exert an important influence on the relative attractiveness of sub-national territories across the European Union (EU). Our findings therefore indicate that locational choices in Europe may be much more similar to place-based preferences in the US than originally thought.
    Keywords: amenities; economic conditions; Europe; inter-regional migration; location choice; regions; social networks
    JEL: O15 R23
    Date: 2012–05
  16. By: Martin Halla; Alexander F. Wagner; Josef Zweimüller
    Abstract: This paper explores one potentially important channel through which immigration may drive support for extreme right-wing parties: the presence of immigrants in one’s neighborhood. We study the case of the Freedom Party of Austria (FPÖ). Under the leadership of Jörg Haider, this party increased its share of votes from less than 5 percent in the early 1980s to 27 percent by the year 1999. Using past regional settlement patterns as a source of exogenous variation, we find a significantly positive effect of the residential proximity of immigrants on FPÖ votes, explaining roughly a quarter of the cross-community variance in FPÖ votes. It is the presence of low- and medium-skilled immigrants that drives this result; high-skilled immigrants have no (or even a negative) effect on FPÖ votes.
    Keywords: Immigration, political economy, voting
    JEL: P16 J61
    Date: 2012–05
  17. By: Harald Fadinger; Karin Mayr
    Abstract: We develop a model of directed technological change, frictional unemployment and migration to examine the effects of a change in skill endowments on wages, employment rates and emigration rates of skilled and unskilled workers. We find that, depending on the elasticity of substitution between skilled and unskilled workers and the elasticity of the matching function, an increase in the skill ratio can reduce the relative unemployment rate of skilled workers and decrease the relative emigration rate of skilled workers (brain drain). We provide empirical estimates and simulations to support our findings and show that effects are empirically relevant and potentially sizeable.
    Keywords: Directed Technological Change, Skill Premia, Unemployment, Brain Drain
    JEL: F22 J61 J64 O33
    Date: 2012–05
  18. By: Claudia Senik (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA, UP4 - Université Paris 4, Paris-Sorbonne - Université Paris IV - Paris Sorbonne - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique)
    Abstract: This article sheds light on the important differences in self-declared happiness across countries of equivalent affluence. It hinges on the different happiness statements of natives and immigrants in a set of European countries to disentangle the influence of objective circumstances versus psychological and cultural factors. The latter turns out to be of non-negligible importance in explaining international heterogeneity in happiness. In some countries, such as France, they are mainly responsible for the country's unobserved idiosyncratic level of (un-)happiness.
    Keywords: Happiness ; Subjective Well-Being ; International Comparisons ; France ; Immigration ; European Social Survey
    Date: 2011–10
  19. By: Antonio Cortese
    Abstract: From the period of Unification until the mid-seventies of last century, Italy – latter a country of immigration – has witnessed considerable migratory flows towards foreign countries. In the paper are analyzed, from a predominantly demographic perspective, the outflows which covered the Mediterranean countries of Africa aiming at tracing back the extent and nature. Following the process of decolonization, the important Italian presence in the countries of the Southern shore of the Mediterranean is extremely limited and presents very different features from those that characterized the period of our “mass migration”.
    Keywords: Migrazioni internazionali, International migration, Emigrazione italiana, italian emigration
    JEL: F22 F54 J11
    Date: 2012–05

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