nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2013‒01‒26
thirteen papers chosen by
Yuji Tamura
Australian National University

  1. Genetic Diversity and the Origins of Cultural Fragmentation By Quamrul Ashraf; Oded Galor
  2. Age at immigration and crime. Findings for male immigrants in Norway By Synøve Nygaard Andersen and Torbjørn Skardhamar
  3. The value of earning for learning: Performance bonuses in immigrant language training By Olof Åslund; Mattias Engdahl
  4. Who leaves and who stays? Outmigration of Estonian immigrants from Finland and its impact on economic assimilation of Estonian immigrants in Finland By Mari Kangasniemi; Merja Kauhanen
  5. Links Between Transnationalism Integration and Duration of Residence: The Case of eastern European Migrants in Italy By Eralba CELA; Tineke FOKKEMA; Elena AMBROSETTI
  6. Immigrant Homeownership and Immigration Status: Evidence from Spain By Catalina Amuedo-Dorantes; Kusum Mundra
  7. How Do Tougher Immigration Measures Impact Unauthorized Immigrants? By Catalina Amuedo-Dorantes; Thitima Puttitanun; Ana Martinez-Donate
  8. A two-country model of high skill migration with public education By Naiditch, Claire; Vranceanu, Radu
  9. Characteristics and labour market performance of the new member state (NMS12) immigrants in Finland, Germany, the Netherlands and the United Kingdom By Mari Kangasniemi; Merja Kauhanen
  10. Wage effects of high-skilled migration : international evidence By Grossmann, Volker; Stadelmann, David
  11. Minority and Immigrant Homeownership Experience: Evidence from the 2009 American Housing Survey By Kusum Mundra
  12. Birthplace Diversity and Economic Prosperity By Alberto Alesina; Johann Harnoss; Hillel Rapoport
  13. Measuring Cultural Diversity and its Impact on Innovation: Longitudinal Evidence from Dutch firms By Ceren Ozgen; Peter Nijkamp; Jacques Poot

  1. By: Quamrul Ashraf; Oded Galor
    Abstract: Despite the importance attributed to the e§ects of diversity on the stability and prosperity of nations, the origins of the uneven distribution of ethnic and cultural fragmentation across countries have been underexplored. Building on the role of deeply-rooted biogeographical forces in comparative development, this research empirically demonstrates that genetic diversity, predominantly determined during the prehistoric ìout of Africaî migration of humans, is an underlying cause of various existing manifestations of ethnolinguistic heterogeneity. Further exploration of this uncharted territory may revolutionize the understanding of the e§ects of deeply-rooted factors on economic development and the composition of human capital across the globe. (JEL N30, O10, O50, Z10)
    Keywords: #
    Date: 2013
  2. By: Synøve Nygaard Andersen and Torbjørn Skardhamar (Statistics Norway)
    Abstract: Previous studies have identified an “immigrant paradox” in crime in which crime rates are highest among immigrants who are young when they arrive in the host country, even though social capital and integration in the labour market and social networks favour the young. We use Norwegian registry data to estimate the probability of committing at least one crime in any year after the year of immigration, and we include interaction terms between age and age at immigration to explore the troublesome temporal association between age, age at immigration and duration of residence. The results suggest an overall negative association between age at immigration and registered crime, which seems to be exaggerated by the residual effect of the omitted duration of residence variable. Comparability of results between studies depends crucially on how age at immigration is measured.
    Keywords: Crime; Immigrants; Age at immigration; Duration of residence
    Date: 2012–12
  3. By: Olof Åslund (IFAU, Uppsala University, UCLS, IZA and CReAM); Mattias Engdahl (Uppsala University, Department of Economics and UCLS)
    Abstract: We study the effects of performance bonuses in immigrant language training for adults. A Swedish policy pilot conducted in 2009-2010 gave a randomly assigned group of municipalities the right to grant substantial cash bonuses to recently arrived migrants. The results suggest substantial effects on average student achievement. But these were fully driven by metropolitan areas; in other parts of Sweden performance was unaffected. The relative effects were larger for younger students but similar for men and women, and present for migrants from different parts of the world. The bonus had a less clear impact on enrollment, but there are indications that it may have increased the probability of progressing to bonus-awarding courses in metropolitan areas.
    Keywords: immigration, language training, performance bonus
    JEL: J08 J15 I24
    Date: 2013–01
  4. By: Mari Kangasniemi (Labour Institute for Economic Research); Merja Kauhanen (Labour Institute for Economic Research)
    Abstract: This paper investigates outmigration of Estonian immigrants from Finland and their economic assimilation. We use a register-based panel data set on new Estonian immigrants from years 2000-2006 to analyse the determinants of outmigration in a duration model framework and to examine the economic assimilation of Estonian immigrants in terms of wages and employment. The results show that earnings have a negative coefficient in the estimated hazard function, in particular when interacted with the second to the fourth year of migration spells. In terms of employment, there is a considerable employment differential between immigrants and natives in the first year of immigration spells, but this gap narrows over time even at the longest observed durations, though changes in some of the earlier years are minimal. Employment assimilation also occurs within individual work histories. For wages, the initial immigrant-native gap is heavily dependent on the age at arrival and gender. Though immigrants initially gain in terms of wage, this trend fades after a few years. When we exclude those who are identified as outmigrants we observe largely similar patterns.
    Keywords: migration, temporary migration, immigrant assimilation, employment, earnings
    JEL: J15 J61
    Date: 2013–01
  5. By: Eralba CELA (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); Tineke FOKKEMA (Netherlands Interdisciplinary Demographic Institute (NIDI)); Elena AMBROSETTI (Universir… La Sapienza, Roma)
    Abstract: Transnationalism of first-generation migrants, usually considered as the core element of their migratory projects, is taken nowadays to some extent for granted. Several migration scholars have mainly focused their research on demonstrating the complementarity or dualism between integration and transnationalism and the degree of persistence of the latter over one's life course and generations. In line with this research, the aim of the present study is to examine empirically the relations of transnationalism with duration of residence and integration of Eastern Europe communities in the specific case of Italy. Data come from the Integrometro survey 2008-2009, encompassing more than 4500 Eastern European migrants, currently representing half of the foreign population in Italy, allowing us to study nationalities that have been overlooked by migration research in transnational topics. Our results clearly show a positive relationship between migrants' economic integration and transnationalism, suggesting that economic resources facilitate the maintenance and development of cross-border ties. Being more integrated socio-culturally, however, is accompanied with weaker transnational practices. Moreover, the level of transnational behaviour decreases the more years Eastern European migrants spend in Italy, which cannot be fully attributed to a higher level of socio-cultural integration.
    Keywords: integration, migration, transnationalism
    JEL: F22 F24
    Date: 2012–11
  6. By: Catalina Amuedo-Dorantes (San Diego State University); Kusum Mundra (Rutgers University)
    Abstract: Because of the many advantages of homeownership for immigrants and for the communities where immigrants reside, a variety of countries have implemented policies that facilitate immigrant homeownership. Although these policies hinge on immigration status, the link between immigration status and homeownership is yet to be carefully explored. Using a recent survey of immigrants in Spain, we find that permanent residents from the EU15 enjoy the highest homeownership rates, even after accounting for a wide range of individual and family characteristics known to impact housing ownership. Permanent residents from countries outside the EU15, temporary residents and undocumented immigrants are, respectively, 12 percentagepoints, 29 percentage-points and 33 percentagepoints less likely to own a home than permanent residents from the EU15. Overall, the findings highlight the differences in homeownership by immigrant status, possibly reflecting differences in cultural adaptation and integration across immigrants in host country.
    Keywords: Immigrant Homeownership, Immigration Status, Spain.
    JEL: R21 J61
    Date: 2013–01
  7. By: Catalina Amuedo-Dorantes (San Diego State University); Thitima Puttitanun (San Diego State University); Ana Martinez-Donate (University of Wisconsin-Madison)
    Abstract: The recent impetus of tougher immigration-related measures passed at the state-level raises concerns about the impact of such measures on the migration experience, trajectory and future plans of unauthorized immigrants. In a recent and unique survey of Mexican unauthorized immigrants interviewed upon their voluntary return or deportation to Mexico, almost a third reports experiencing difficulties in obtaining social or government services, finding legal assistance or obtaining health care services. Additionally, half of them report fearing deportation despite all of them being unauthorized. When we assess how the enactment of punitive measures against unauthorized immigrants, such as E-Verify mandates, has impacted their migration experience, we find no evidence of a statistically significant association between these measures and the difficulties reported by unauthorized immigrants in accessing a variety of services. However, the enactment of these mandates infuses deportation fear and reduces inter-state mobility among voluntary returnees during their last migration spell, and helps curb deportees’ intent to return to the United States in the near future.
    Keywords: Immigration, policy, undocumented, illegal, unauthorized, Mexico.
    Date: 2013–01
  8. By: Naiditch, Claire (ESSEC Business School); Vranceanu, Radu (ESSEC Business School)
    Abstract: This paper proposes a two-country model of migration in a transferable skill sector, where workers'education is provided free of charge by governments. We study firstly the non-cooperative equilibrium where the poor country decides on the education level and the rich country decides on the quota of skilled migrants. Additional migration raises earnings prospects in the source country and attracts more talented people to that profession, what we refer to as the sector-specific brain gain effect. This game presents a single stable equilibrium with positive migration. Compared to the cooperative equilibrium, in the noncooperative equilibrium the poor country systematically under-invests in education. Whether migration is too strong or too weak depends on the size of the brain gain effect. Furthermore, the size of the welfare gain to be reaped by moving from non-cooperative to the cooperative organization of migration also depends on the strength of the sector-specific brain gain.
    Keywords: High-skill migration; Brain-gain; Public education; Human capital; Government
    JEL: F22 H11 I25
    Date: 2013–01
  9. By: Mari Kangasniemi (Labour Institute for Economic Research); Merja Kauhanen (Labour Institute for Economic Research)
    Abstract: There is little previous comparative research on how new EU member state immigrant population (NMS) and their labour market performance differ across the old member states. This paper extends the earlier literature by investigating NMS immigrants’ composition and labour market performance in Finland, Germany, the Netherlands, and the United Kingdom which are characterized by considerable differences in their labour market institutions. These institutional structures might also influence the labour market outcomes of NMS immigrants and these countries’ abilities to absorb immigrants. As measures of labour market performance we use labour force participation, employment, type of employment, and occupational attainment. We use pooled cross-sectional data from the European Union Labour Force Survey from years 2004-2009 in the analyses. We find that NMS12 immigrants had on average a lower probability of employment in comparison to natives in all other countries except for the UK during period 2004-2009. With the time spent in the host country the employment gap between NMS12 immigrants and natives narrows in Finland, Germany and the Netherlands. The type of employment and a higher risk of working in low skilled jobs NMS immigrants have in comparison to similar natives also indicate that the NMS immigrants have a more disadvantaged position in the host country labour market.
    Keywords: new EU member states, composition of immigrants, labour market outcomes, labour force participation, employment, self-employment, occupational attainment, role of institutions
    JEL: J61 F22
    Date: 2013–01
  10. By: Grossmann, Volker; Stadelmann, David
    Abstract: The international migration of high-skilled workers may trigger productivity effects at the macro level such that the wage rate of skilled workers increases in host countries and decrease in source countries. The authors exploit data on international bilateral migration flows and provide evidence consistent with this theoretical hypothesis. They propose various instrumentation strategies to identify the causal effect of skilled migration on log differences of GDP per capita, total factor productivity, and the wages of skilled workers between pairs of source and destination countries. These strategies aim to address the endogeneity problem that arises when international wage differences affect migration decisions.
    Keywords: Population Policies,Labor Markets,International Migration,Labor Policies,Human Migrations&Resettlements
    Date: 2013–01–01
  11. By: Kusum Mundra
    Abstract: Using data from the 2009 American Housing Survey and Hazard Model, this paper provides empirical evidence that the homeownership experience during the recent housing boom and housing bust was not homogenous across all groups in the U.S. The recent deterioration of underwriting practices and a boom in mortgage lending did not benefit minorities and immigrant homeownership in the U.S. Blacks experienced significantly lower increase in homeownership than the whites but highest exit from homeownership particularly if they obtained the mortgage during subprime boom period from 2004 - 2006. Hispanics, on the other hand, did not experience significant increase in homeownership and neither did they face a higher exit from homeownership compared to whites. However, Hispanic immigrants were worse off in the recent housing market than Hispanic natives. Immigrants were worse off in the recent housing market than the natives, but naturalized immigrants fared better than the non-naturalized immigrants.
    Keywords: Homeownership, Exit, Subprime, Minorities, Immigrants, Citizenship, Hazard Model
    JEL: J15 J11 R21
    Date: 2013–01
  12. By: Alberto Alesina (Harvard University and IGIER Bocconi); Johann Harnoss (EQUIPPE, University of Lille, Harvard University and HWWI Hamburg); Hillel Rapoport (Bar-Ilan University, EQUIPPE and Center for International Development, Harvard University)
    Abstract: The diversity of people has economic costs and benefits. Using recent immigration data from 195 countries, we propose an index of diversity based on people's birthplaces. This new index is decomposed into a "size" (share of foreign born) and a "variety" (diversity of immigrants) component and is available for 1990 and 2000 and for the overall as well as for the high (workers with college education) and low-skill fractions of the workforce. We show that birthplace diversity is largely uncorrelated with ethnic and linguistic fractionalization and that - unlike fractionalization - it is positively related to economic development even after controlling for education, institutions, ethnic and linguistic fractionalization, trade openness, geography, market size, and origin-effects. This positive association appears particularly strong for the diversity of skilled immigrants in richer countries. We make progress towards addressing endogeneity by specifying a gravity model to predict the diversity of immigration based on exogenous bilateral variables. The results are robust across various OLS and 2SLS specifications.
    Keywords: Birthplace diversity, ethnic diversity, economic growth, productivity, immigration.
    JEL: O1 O4 F22 F43
    Date: 2013–01
  13. By: Ceren Ozgen (Department of Spatial Economics, VU University Amsterdam); Peter Nijkamp (Department of Spatial Economics, VU University Amsterdam); Jacques Poot (National Institute of Demographic and Economic Analysis, University of Waikato)
    Abstract: To investigate econometrically whether cultural diversity of a firm’s employees boosts innovation, we create a unique linked employer-employee dataset that combines data from two innovation surveys in The Netherlands with administrative and tax data. We calculate three distinct measures of diversity. We find that firms that employ fewer foreign workers are generally more innovative, but that diversity among a firm’s foreign workers is positively associated with innovation activity. The positive impact of diversity on product or process innovations is greater among firms in knowledge-intensive sectors and in internationally-oriented sectors. The impact is robust to accounting for endogeneity of foreign employment.
    Keywords: immigration, innovation, cultural diversity, knowledge spillovers, linked administrative and survey data
    JEL: D22 F22 O31
    Date: 2013–01

This nep-mig issue is ©2013 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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