nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2013‒03‒09
eight papers chosen by
Yuji Tamura
Australian National University

  1. The labor market impact of refugee immigration in Sweden 1999–2007 By Ruist, Joakim
  2. Wage Effects of Immigration in a Bargaining Economy By Lundborg, Per
  3. Skilled labor flows : lessons from the European Union By Kahanec, Martin
  4. The value of earning for learning: Performance bonuses in immigrant language training By Åslund, Olof; Engdahl, Mattias
  5. An Equilibrium Search Model of the Labor Market Entry of Second-Generation Immigrants and Ethnic Danes By Nabanita Datta Gupta; Lene Kromann
  6. Paid parental leave to immigrants: An obstacle to labor market entrance? By Vikman, Ulrika
  7. Immigrant Women and Entrepreneurship: A Study of the Health Care Sector in Sweden, 2002-2006 By Korpi, Martin; Hedberg, Charlotta; Pettersson, Katarina
  8. Patterns and Determinants of Off-Farm Migration: Transfer frictions and persistency of relative income gaps By Olper, Alessandro; Raimondi, Valentina; Bertoni, Danilo; Cavicchioli, Daniele

  1. By: Ruist, Joakim (Department of Economics, University of Gothenburg)
    Abstract: This study estimates labor market effects of refugee immigration in Sweden 1999–2007. The setting is particularly suitable for using spatial variation within the country to estimate labor market effects of immigration. Bias from endogenous immigrant settlement is likely to be smaller when estimating the effect of only refugee immigration. Bias from internal migration of previous inhabitants is reduced by using data where the same individuals are identified over time. No significant effect of refugee immigration on total unemployment is found, but there is a large effect on the unemployment of previous immigrants from low- and middle-income countries, indicating that newly arrived refugee immigrants are substantially more easily substituted for this group than for natives in production.
    Keywords: unemployment; refugee immigration
    JEL: J23 J61 J64
    Date: 2013–02–14
  2. By: Lundborg, Per (Stockholm University Linnaeus Center for Integration Studies - SULCIS)
    Abstract: Most empirical studies on wage effects of immigration disregard common labour market institutions like the requirement of job offer before entry to the host country and wage bargaining. The model presented here accounts for these institutions and finds a rationale for the empirical studies’ treatment of the migrant share as a determinant of natives’ wages. A higher migrant share is shown to lower the native’s wage but only temporarily. After assimilation the wage subsequently returns to its original level. The results suggest that empirical studies of wage effects of immigration should focus on unassimilated immigrants having low reservation wages.
    Keywords: Immigration; bargaining; institutions
    JEL: J53 J61
    Date: 2013–02–14
  3. By: Kahanec, Martin
    Abstract: This study evaluates European Union (EU) experience of the mobility of skilled labor migrants after the 2004 and 2007 EU enlargements and from the European Neighborhood Policy (ENP) countries. The study concludes that migration generally improves the allocated efficiency of labor markets and there is little if any evidence of statistically significant or economically relevant negative aggregate effects of migration on receiving labor markets. While outflow of young and skilled workers may pose risks to sending countries'economic prospects and public finance, circular migration, brain gain, and remittances attenuate such risks, and have the potential to become powerful engines of convergence. Obstructive legislation and ill-designed migration policies impede migration and deprive sending and receiving of such potential benefits.
    Keywords: Population Policies,Labor Markets,Labor Policies,Health Monitoring&Evaluation,Voluntary and Involuntary Resettlement
    Date: 2013–02–01
  4. By: Åslund, Olof (Uppsala Center for Labor Studies); Engdahl, Mattias (Uppsala Center for Labor Studies)
    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: I24 J08 J15
    Date: 2013–01–28
  5. By: Nabanita Datta Gupta (Department of Economics and Business, Aarhus University); Lene Kromann (CBS, Copenhagen, Denmark)
    Abstract: Using a search model for Danish labor market entrants, we are one of the first studies to test whether second-generation immigrants have the same job-offer arrival and layoff rates as ethnic Danes have. We contribute to the search literature by incorporating matching as a way to ensure sub-sample homogeneity. Thus, we match second-generation immigrants to their ethnic Danish twins on the basis of parental characteristics and informal network quality. There are big differences before matching, but after matching, second-generation immigrants perform as well or better than their ethnic Dane counterparts do on the labor market, though not with respect to layoffs. This result is mainly driven by the group of high school graduates and those with a primary school education only. Second generation immigrants with vocational education, males in particular, face both significantly lower arrival rates when unemployed and significantly higher layoff rates than those of their ethnic Danish twins.
    Keywords: J15, J61, J71
    Date: 2013–02–28
  6. By: Vikman, Ulrika (IFAU - Institute for Evaluation of Labour Market and Education Policy)
    Abstract: This paper evaluates how access to paid parental leave affects labor market entrance for immigrating mothers with small children. Paid parental leave together with job protection may increase labor force participation among women but if it is too generous it may create incentives to stay out of the labor force. This incentive effect may be especially true for mothers immigrating to a country where having small children automatically makes the mothers eligible for the benefit. To evaluate the differences in the assimilation process for those who have access to the parental leave benefit and those who do not, Swedish administration data is used in a difference-in-differences specification to control for both time in the country and the age of the youngest child. The results show that labor market entrance is delayed for mothers and that they are less likely to be a part of the labor force for up to seven years after theír residence permit if they had access to parental leave benefits when they came to Sweden. This reduction in the labor force participation is to some extent driven by unemployment since the effect on employment is smaller. But there is still an effect on employment of 3 percentage points lower participation rates 2-6 years after immigration.
    Keywords: Immigrant assimilation; labor market entrance; paid parental leave benefit
    JEL: J13 J15 J21
    Date: 2013–02–01
  7. By: Korpi, Martin (Institute for Economic and Business History Research, Stockholm School of Economics); Hedberg, Charlotta (Stockholm University Linnaeus Center for Integration Studies - SULCIS); Pettersson, Katarina (Nordic Centre for Spatial Development)
    Abstract: Using unique Swedish longitudinal full-population data and logistic regression, this paper explores whether start-ups of foreign born female heath care workers are structurally (i.e. comparatively higher unemployment and lower wages) or culturally (defined as country of birth) motivated. While structural factors are significantly related to female entrepreneurship regardless of origin, no additional effect is found whether for foreign born more broadly defined, or when adding specific country of birth. Thus, we conclude that structural disadvantage motives, based on gender rather than ethnicity, dominate over possible cultural motives for entrepreneurship.
    Keywords: Immigration; Gender; Entrepreneurship
    JEL: I11 J15 J16 L26
    Date: 2013–02–14
  8. By: Olper, Alessandro; Raimondi, Valentina; Bertoni, Danilo; Cavicchioli, Daniele
    Abstract: The inter-sectoral migration of agricultural labour is a complex but fundamental process of economic development largely affected by the growth of agricultural productivity and the evolution of the agricultural relative income gap. Theory and some recent anecdotal evidence suggest that as an effect of large fixed and sunk costs of out-farm migration, the productivity gap between the agricultural and non-agricultural sectors should behave non-monotonically or following a U-shaped evolution during economic development. Whether or not this relationship holds true across a sample of 38 developing and developed countries and across more than 200 EU regions was empirically tested. Results strongly confirm this relationship, which also emphasises the role played by national agricultural policy.
    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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.