nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2012‒11‒24
two papers chosen by
Yuji Tamura
Australian National University

  1. Unemployment of immigrants and natives over the business cycle: evidence from the Austrian labor market By Nora Prean; Karin Mayr
  2. Inter-jurisdictional migration and the size of government By Giuranno, Michele G.; Rongili, Biswas

  1. By: Nora Prean (University of Vienna, Austria); Karin Mayr
    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. According to existing theory, a greater variability in the employment of immigrants can be due to a selection of immigrant workers into specific industries or temporary jobs. However, we do not find this confirmed in our data.
    Keywords: Unemployment rate, Immigration, Guestworker, Immigrant Labor
    JEL: J64 J61
    Date: 2012–09
  2. By: Giuranno, Michele G.; Rongili, Biswas
    Abstract: This paper develops a model of centralized public spending where decision-makers are the regional median voters instead of the national median voter of the received literature. Regional representatives decide the level of public spending by bargaining in the central legislature. We study how exogenous changes in the composition of the regional electorate either deteriorate or mitigate inter-jurisdictional redistributive conflicts and how these, in turn, influence the size of the government. We find the conditions under which migration-induced inter-regional income convergence (divergence) leads either to a bigger or a smaller government. Finally, the relationship between migration and efficiency is explored within the present framework.
    Keywords: Demographic Changes; Government Spending; Inequality; Redistribution; Bargaining; Political Economy Theory
    JEL: H50 R1 D30 H41 D78 H00
    Date: 2012–10–29

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