nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2013‒01‒12
eight papers chosen by
Yuji Tamura
Australian National University

  1. Migration and unemployment duration in OECD countries: A dynamic panel analysis By Vincent Fromentin
  2. Dutch Disease and the Mitigation Effect of Migration: Evidence from Canadian Provinces By Michel Beine; Serge Coulombe; Wessel N. Vermeulen
  3. Is there monopsonistic discrimination against immigrants? First evidence from linked employer employee data By Jahn, Elke; Hirsch, Boris
  4. Voting with Your Feet: Political Competition and Internal Migration in the United States By Liu, Wai-Man; Ngo, Phong
  5. Unequal Pay or Unequal Employment? What Drives the Skill-Composition of Labor Flows in Germany? By Arntz, Melanie; Gregory, Terry; Lehmer, Florian
  6. Heterogeneous Firms and Substitution by Tasks: the Productivity Effect of Migrants By Lucht, Michael; Haas, Anette
  7. Life (Dis)satisfaction and the Decision to Migrate: Evidence from Central and Eastern Europe By Vladimir Otrachshenko; Olga Popova
  8. Remittances and Gender-Speci fic Employment Patterns in Peru - a longitudinal Analysis By Göbel, Kristin

  1. By: Vincent Fromentin (CERFIGE, Université de Lorraine and CREA, University of Luxembourg)
    Abstract: This paper examines whether or not immigration has a positive influence on the duration of unemployment, in a macroeconomic perspective. The integration of immigrants into the labor market is a recurrent topic in literature on the economic consequences of immigration, and it is a central concern to policy makers aiming to design policies. However, to our knowledge, few researchers have studied the impact of immigration on the duration of unemployment. By using panel estimations (OLS and GMM), we show that migration seems to influence short– term unemployment positively and long-term unemployment negatively, for 14 OECD destination countries between 1975 and 2008.
    Keywords: International migration, unemployment duration, OECD countries, panel data
    Date: 2012
  2. By: Michel Beine (CREA, University of Luxembourg, IRES, CREAM and CES-Ifo); Serge Coulombe (University of Ottawa); Wessel N. Vermeulen (CREA, University of Luxembourg)
    Abstract: This paper looks at whether immigration can mitigate the Dutch disease effects associated with booms in natural resource sectors. We first derive predicted changes in the size of the non-tradable sector from a small general-equilibrium model `a la Obstfeld-Rogoff, supplemented by a resource income and a varying labour supply. Using data for Canadian provinces, we test for the existence of a mitigating effect of immigration in terms of an increase in the size of the non-tradable sector triggered by the positive resource shock in booming regions. We find evidence of such an effect for the aggregate inflow of migrants. Disentangling those flows by type of migrants, we find that the mitigation effect is due mostly to interprovincial migration and temporary international migration. There is no evidence of such an effect for permanent international immigration. Nevertheless, interprovincial migration also results in a spreading effect of Dutch disease from booming to non-booming provinces.
    Keywords: Natural Resources, Dutch Disease, Immigration, Mitigation Effect
    JEL: F22 O15 R11 R15
    Date: 2012
  3. By: Jahn, Elke; Hirsch, Boris
    Abstract: This paper investigates immigrants and natives labour supply to the firm within a semi-structural approach based on a dynamic monopsony framework. Applying duration models to a large administrative employer employee data set for Germany, we find that once accounting for unobserved worker heterogeneity immigrants supply labour less elastically to firms than natives. Under monopsonistic wage setting the estimated elasticity differential predicts a 4.6 log points wage penalty for immigrants thereby accounting for almost the entire unexplained native immigrant wage differential of 2.9 5.9 log points. Our results imply that discriminating against immigrants is profitable rather than costly. --
    JEL: J42 J61 J71
    Date: 2012
  4. By: Liu, Wai-Man; Ngo, Phong
    Abstract: Do people "vote with their feet" due to a lack of political competition? We formalize the theory of political competition and migration to show that increasing political competition lowers political rent leading to net in-migration. Our empirical application using US data supports this prediction. We …find that an increase in political competition - in the order of magnitude observed in US Southern states during the post-war period - leads to an increase in net migration of approximately 36 individuals per 1000 population. In comparison, birth rates over the last century ranged between 70 and 150 births per 1000 population.
    Keywords: political competition; internal migration; welfare; Voting Rights Act
    JEL: H70 J61 N92 D72
    Date: 2012–10–16
  5. By: Arntz, Melanie; Gregory, Terry; Lehmer, Florian
    Abstract: This paper examines the determinants of gross labour flows in a context where modeling the migration decision as a wage-maximizing process may be inadequate due to regional wage rigidities that result from central wage bargaining. In such a context, the framework that has been developed by Borjas et al. (1992) on the selectivity of internal migrants with respect to skills has to be extended to allow migrants to move to regions that best reward their skills in terms of both wages and employment. The extended framework predicts skilled workers to be disproportionately attracted to regions with higher mean wages and employment rates as well as higher regional wage and employment inequalities. Estimates from a labour flow fixed effects model and a GMM estimator show that these predictions hold, but only the effects for mean employment rates and employment inequality are robust and significant. The paper may thus be able to explain why earlier attempts to explain skill selectivity in Europe within a pure wage-based approach failed to replicate the US results. --
    JEL: R23 J31 J61
    Date: 2012
  6. By: Lucht, Michael; Haas, Anette
    Abstract: Economic debate about the consequences of immigration in Germany has largely focused on the wage effects for natives at an aggregate level. Especially the role of imperfect substitutability of migrants and natives gained importance. A new micro oriented approach is to focus on the firm level by estimating production functions in an equilibrium framework to gain more detailed information including firm heterogeneity. Another branch of recent literature emphasizes the role of task dimension of occupations additionally to the qualification of workers: migrants work in different jobs than natives do and are concentrated in agglomerations. The task approach is thus a key to understand imperfect substitution on the firm level. Our contribution in this article is manifold: we examine the effects of the relative (dis-)advantages in performing certain tasks and their implications on the labor market outcomes. Using this framework we construct a general equilibrium model with monopolistic competition a la Dixit-Stiglitz considering heterogeneous firms with different productivity levels and two types of jobs for migrants and natives. Firms differ in the ability to employ migrants which gives rise to wage differences between natives and migrants. Therefore firms with a higher share of migrants realize wage cost advantages. In the long run equilibrium only those firms survive in the market which are highly productive or are able to compensate their lower productivity level by wage cost advantages. We show that a higher migrant share is able to explain the increase of productivity. Further, the heterogeneous distribution of migrants in our model is the source of regional disparities. Thus part of the agglomeration advantages can be explained by the empirical stable observation that migrants tend to move to cities. The conclusions of the model are in line with three empirical facts in Germany. Firstly, the average productivity of firms is higher in cities. Secondly, the wage difference between migrants and natives in a region is increasing in the share of migrants in that region. Thirdly, less productive firms are more likely to employ a higher share of migrants, as wage advantages and productivity acts as a substitute. keywords: immigration, firm heterogeneity, skills, tasks, regional labor markets JEL: R23, J15, J24, J61 --
    JEL: R23 J15 J63
    Date: 2012
  7. By: Vladimir Otrachshenko; Olga Popova
    Abstract: This paper provides empirical evidence of the impact of life satisfaction on the individual intention to migrate. The impacts of individual characteristics and of country macroeconomic variables on the intention to migrate are analyzed jointly. Differently from other studies, we allow for life satisfaction to serve as a mediator between macro-economic variables and the intention to migrate. Using the Eurobarometer Survey for 27 Central Eastern European (CEE) and Western European (non-CEE) countries, we find that people have a higher intention to migrate when dissatisfied with life. The socio-economic variables and macroeconomic conditions have an effect on the intention to migrate indirectly through life satisfaction. The impact of life satisfaction on the intention to migrate for middle-aged individuals with past experience of migration, low level of education, and with a low or average income from urban areas is higher in CEE countries than in non-CEE countries. JEL codes: I31, J61
    Keywords: life satisfaction, migration, decision making
    Date: 2012
  8. By: Göbel, Kristin
    Abstract: This study examines the role of migrant's remittances on labor supply in remittance receiving households. A simple labor choice model is developed which is extended to include self-employment. Unlike earlier studies, fixed effects estimations as well as an instrumental approach are applied. Estimates are provided for both participation and hours. Strong evidence is provided that remittances increase self-employment at the extensive margin for women. Overall, no robust effect of reduced labor supply in response to remittances is found. --
    JEL: O15 J22 F24
    Date: 2012

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