nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2013‒02‒03
thirteen papers chosen by
Yuji Tamura
Australian National University

  1. Visa Policies, Networks and the Cliff at the Border By Bertoli, Simone; Fernández-Huertas Moraga, Jesús
  2. Returning Home at Times of Trouble? Return Migration of EU Enlargement Migrants during the Crisis By Zaiceva, Anzelika; Zimmermann, Klaus F.
  3. On the Interdependence of Illegal and Legal Immigration By Moritz Bonn
  4. Immigrant skills and employment. Cross-country evidence from the Adult Literacy and Life Skills Survey By Bernt Bratsberg, Torbjørn Hægeland and Oddbjørn Raaum
  5. A two-country model of high skill migration with public education By Claire Naiditch; Radu Vranceanu
  6. The Value of Earning for Learning: Performance Bonuses in Immigrant Language Training By Aslund, Olof; Engdahl, Mattias
  7. Wage Growth through Job Hopping in China By Ariga, Kenn; Ohtake, Fumio; Sasaki, Masaru; Wu, Zheren
  8. The Theory of Interhybridity: Socio-political Dimensions and Migration Experiences of Post-communist Western Balkan States By Aliu, Armando
  9. The Impacts of Social Networks on Immigrants’ Employment Prospects: The Spanish Case 1997-2007 By Luciana Méndez Errico
  10. The Determinants of International Migration in the European Union: An Empirical Analysis By Ekaterina Sprenger
  11. The European Crisis and Migration to Germany: Expectations and the Diversion of Migration Flows By Simone Bertoli; Herbert Brücker; Jesus Fernández-Huertas Moraga
  12. International migration, human capital formation, and saving By Stark, Oded; Dorn, Agnieszka
  13. Return Migration of Foreign Students By Govert Bijwaard; Qi Wang

  1. By: Bertoli, Simone (CERDI, University of Auvergne); Fernández-Huertas Moraga, Jesús (FEDEA, Madrid)
    Abstract: The scale of international migration flows depends on moving costs that are, in turn, influenced by host-country policies and by the size of migrant networks at destination. This paper estimates the influence of visa policies and networks upon bilateral migration flows to multiple destinations. We rely on a Poisson pseudo-maximum likelihood estimator to derive estimates that are consistent under more general distributional assumptions on the underlying RUM model than the ones commonly adopted in the literature. We derive bounds for the estimated direct and indirect effects of visa policies and networks that reflect the uncertainty connected to the use of aggregate data, and we show that bilateral migration flows can be highly sensitive to the immigration policies set by other destination countries, an externality that we are able to quantify.
    Keywords: international migration, networks, visa policies, multiple destinations, externalities
    JEL: F22 O15 J61
    Date: 2012–12
  2. By: Zaiceva, Anzelika (University of Modena and Reggio Emilia); Zimmermann, Klaus F. (IZA and University of Bonn)
    Abstract: The eastern enlargements of the EU in 2004 and 2007 have stimulated the mobility of workers from the new EU8 and EU2 countries. A significant proportion of these migrants stayed abroad only temporarily, and the Great recession may have triggered return intentions. However, a return may be postponed if the economic situation in a sending region is persistently worse. This paper documents emerging evidence on return migration in post-enlargement Europe combining several data sources to describe the characteristics and selection of the returnees, as well as the determinants of return migration and potential re-migration decisions. The findings suggest that brain circulation rather than brain drain is relevant for several new member states and that returnees are most likely to migrate again. Moreover, the proportion of potential movers is larger in countries most affected by the crisis. Repeat and circular migration is expected to alleviate the potential negative impacts of the crisis, leading to a more efficient allocation of resources within the enlarged EU.
    Keywords: return migration, EU Eastern enlargement, economic crisis
    JEL: F22 J61
    Date: 2012–12
  3. By: Moritz Bonn (University of Siegen)
    Abstract: 15 pages
    Keywords: Illegal Immigration, Fiscal Contribution, Immigration Policy
    JEL: F22 H24 K4
    Date: 2013
  4. By: Bernt Bratsberg, Torbjørn Hægeland and Oddbjørn Raaum (Statistics Norway)
    Abstract: This paper studies the distributions of literacy skills, education, and employment of immigrants and natives in three host countries: Canada, the United States, and Norway. For natives, we uncover remarkably stable relations between literacy skills, schooling, and employment across countries. For immigrants, the relations differ strongly: whereas literacy skills form only a weak determinant of immigrant employment in the North American labor markets, in Norway literacy is much more important for immigrant than native employment. We investigate various sources of this discrepancy and fail to uncover evidence that the finding reflects differential immigrant sorting across host countries. Instead, results show that literacy skills are particularly important for groups characterized by low employment in the Norwegian labor market, consistent with the hypothesis that a compressed wage structure, employment protection, and social insurance with high replacement ratios create adverse employment effects for immigrants.
    Keywords: Immigrants; literacy skills; employment
    JEL: J15 J24 J61
    Date: 2013–01
  5. By: Claire Naiditch (Laboratoire économie quantitative intégration politiques publiques économétrie - Université de Lille 1); Radu Vranceanu (Economics Department - 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-speci…c brain gain e¤ect. This game presents a single stable equilibrium with positive migration. Compared to the cooperative equilibrium, in the non-cooperative 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 e¤ect. 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-speci…c brain gain.
    Keywords: High-skill migration ; Brain-gain ; Public education ; Human capital ; Government
    Date: 2013–01–21
  6. By: Aslund, Olof (IFAU); Engdahl, Mattias (Uppsala University)
    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: 2012–12
  7. By: Ariga, Kenn (Kyoto University); Ohtake, Fumio (Osaka University); Sasaki, Masaru (Osaka University); Wu, Zheren (Kinki University)
    Abstract: This paper uses a unique survey of the Chinese youth to construct a panel data in which we keep track of geographical and job mobilities. Our estimation results deliver the following major findings. (1) The sample individuals are highly mobile. Job quits and relocations are frequent and they are closely correlated. We find that job hopping to be highly productive as our estimates indicate each job quit generates more than .2 log increase in monthly wage. (2) The migrant disadvantage in urban labor market is compensated by their higher job mobility. After four jobs, the expected earnings differentials essentially disappear. We also find that migration and job mobility are highly selective processes. Our evidence indicates that the migrants are positively selected. (3) Job and location mobilities are highly dependent upon family back ground and personal traits which we interpret as representing unobservable characteristics associated with risk taking, active and optimistic personality, as well as the implied economic incentives to migrate and keep searching for better jobs.
    Keywords: wage growth, migration, school to work transition
    JEL: J31 J61 J62
    Date: 2012–12
  8. By: Aliu, Armando
    Abstract: The Western Balkans integration within the EU has started a legal process which is the rejection of former communist legal/political approaches and the transformation of former communist institutions. Indeed, the EU agenda has brought vertical/horizontal integration and Europeanization of national institutions (i.e. shifting power to the EU institutions and international authorities). At this point, it is very crucial to emphasize the fact that the Western Balkans as a whole region has currently an image that includes characteristics of both the Soviet socialism and the European democracy. The EU foreign policies and enlargement strategy for Western Balkans have significant effects on four core factors (i.e. Schengen visa regulations, remittances, asylum and migration as an aggregate process). The convergence/divergence of EU member states’ priorities for migration policies regulate and even shape directly the migration dynamics in migrant sender countries. From this standpoint, the research explores how main migration factors are influenced by political and judicial factors such as; rule of law and democracy score, the economic liberation score, political and human rights, civil society score and citizenship rights in Western Balkan countries. The proposal of interhybridity explores how the hybridization of state and non-state actors within home and host countries can solve labor migration-related problems. Indisputably, hybrid model (i.e. collaboration state and non-state actors) has a catalyst role in terms of balancing social problems and civil society needs. Paradigmatically, it is better to perceive the hybrid model as a combination of communicative and strategic action that means the reciprocal recognition within the model is precondition for significant functionality. This will shape social and industrial relations with moral meanings of communication.
    Keywords: Interhybridity; Migration; Politics; Western Balkans
    JEL: F22 A1 C0 B4 P48 C1 F5 P3 J61 C8 J53
    Date: 2013–01–25
  9. By: Luciana Méndez Errico (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)
    Abstract: This paper studies the extent to which social networks influence the employment stability and wages of immigrants in Spain. By doing so, I consider an aspect that has not been previously addressed in the empirical literature, namely the connection between immigrants’ social networks and labor market outcomes in Spain. For this purpose, I use micro-data from the National Immigrant Survey carried out in 2007. The analysis is conducted in two stages. First, the impact of social networks on the probability of keeping the first job obtained in Spain is studied through a multinomial logit regression. Second, quantile regressions are used to estimate a wage equation. The empirical results suggest that once the endogeneity problem has been accounted for, immigrants’ social networks influence their labor market outcomes. On arrival, immigrants experience a mismatch in the labor market. In addition, different effects of social networks on wages by gender and wage distribution are found. While contacts on arrival and informal job access mechanisms positively influence women’s wages, a wage penalty is observed for men.
    Keywords: Immigration, Labor market, Social Networks, Quantile regression, Semi-parametric estimations
    JEL: J15 J31 J61 C15
    Date: 2013–01
  10. By: Ekaterina Sprenger (ZBW – Leibniz Information Centre for Economics)
    Abstract: This paper empirically investigates the determinants of migration between 21 developed countries which are members of the EU and the OECD. Using data on migration flows over the period 2000–2009, the paper examines the impact of traditional economic variables such as income and unemployment differentials, geographical and demographic factors. It also examines the effect of cultural differences on the mobility patterns in the EU before and after the 2004 enlargement round.
    Date: 2013–01
  11. By: Simone Bertoli; Herbert Brücker; Jesus Fernández-Huertas Moraga
    Abstract: The analys is of how the economic crisis in Europe has reshaped migration flows faces two challenges: (i)the confounding influence of correlated changes in the attractiveness of alternative destinations, and (ii)the role of rapidly changing expectations about the evolution of the economic conditions in various countries. This paper addresses the first challenge by controlling for multilateral resistance to migration, and the second one by incorporating 10-year bond yields as an explanatory variable in a study of European bilateral migration flows to Germany between 2006 and 2012. We show that, while expectations and current economic conditions at origin are signicant determinants of migration, diversion effects account for 78 percent of the observed increase in German gross migrationin ows.
    Date: 2013–01
  12. By: Stark, Oded; Dorn, Agnieszka
    Abstract: In the model of Stark et al. (1997, 1998), the possibility of employment in a developed country raises the level of human capital acquired by workers in the developing country. We show that this result holds even when workers have the option to save. --
    Keywords: Human capital formation,Savings,Intertemporal choice,Prospect of migrating
    JEL: D91 F22 J22 J24
    Date: 2013
  13. By: Govert Bijwaard (Netherlands Interdisciplinary Demographic Institute (NIDI)); Qi Wang (Netherlands Interdisciplinary Demographic Institute (NIDI))
    Abstract: Using unique administrative micro panel data, this paper presents a comprehensive empirical analysis of the return of recent foreign students in The Netherlands. The life course experiences of these students in the host, both on the labour market and in marriage formation, impact their decision to leave. Using a ”timing-of-events” model we estimate the impact of these processes on the return intensity. The model allows for correlated unobserved heterogeneity across the migration, the labour market and the marriage formation processes. The large size of the data permits us to stratify the analysis by five groups based on the country of birth. The empirical analyses reveal that employment induces students to stay and unemployment induces them to leave. Forming a family in The Netherlands makes the students more prone to stay. The size of the impact of these life course experiences on return differs by age at entry and gender.
    Keywords: student migration, timing of events method, labour dynamics, marriage.
    JEL: F22 J64 J12 C41
    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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