nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2013‒12‒15
fifteen papers chosen by
Yuji Tamura
La Trobe University

  1. Childhood residential mobility and adult outcomes By Marianne Tønnessen; Kjetil Telle; Astri Syse
  2. Migration-Induced Women’s Empowerment: The Case of Turkey By Şule Akkoyunlu
  3. Immigrants' Genes: Genetic Diversity and Economic Development in the US By Ager, Philipp; Brückner, Markus
  4. Migrants' Home Town Associations and Local Development. Evidence from Mali By Lisa Chauvet; Flore Gubert; Marion Mercier; Sandrine Mesplé-Somps
  5. Acquiring Human Capital through the Generations by Migration By Smith, James P.; Delaney, Liam
  6. Housing Market Responses to Immigration; Evidence from Italy By Sona Kalantaryan
  7. Migration, Risk Attitudes, and Entrepreneurship: Evidence from a Representative Immigrant Survey By Batista, Catia; Umblijs, Janis
  8. Welfare Effects of Labor Migration By Vikhrov Dmytro
  9. Cost and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries By Luca Barbone; Matthias Luecke
  10. The Steadiness of Migration Plans and Expected Length of Stay – Based on a Recent Survey of Romanian Migrants in Italy By Michael Landesmann; Isilda Mara
  11. Are immigrants a burden for the state budget? Review paper By Paweł Kaczmarczyk
  12. Geographic Proximity and the Pro-trade Effect of Migration: State-level Evidence from Mexican Migrants in the United States By Michael Good
  13. Remittances and Well-Being among Rural-to-Urban Migrants in China By Alpaslan Akay; Corrado Giulietti; Juan D. Robalino; Klaus F. Zimmermann
  14. The European Crisis and Migration to Germany: Expectations and the Diversion of Migration Flows By Simone BERTOLI; Herbert BRÜCKER; Jesús FERNÁNDEZ-HUERTAS MORAGA
  15. Regional Mismatch and Labor Reallocation in an Equilibrium Model of Migration By Plamen Nenov

  1. By: Marianne Tønnessen; Kjetil Telle; Astri Syse (Statistics Norway)
    Abstract: This study analyses the relation between moving during childhood and four different outcomes later in life. We use detailed data on complete cohorts born in Norway between 1965 and 1980 (N=967 151), their parents and siblings, and information on all their moves between Norway’s municipalities. We use traditional logistic regression models and sibling fixed-effects models. First, we assess how different outcomes are affected by the number of times a child has moved. Next, we examine whether the child’s age at moving is important. The results show that children with more residential relocations during childhood are more likely to drop out of high school, to have low adult income, to experience early parenthood and to die at young age. The sibling fixed-effects models largely confirm this picture. We also found that children who moved prior to elementary school do not have severe long-term outcomes compared with children who did not move at that age, whereas children who moved during teens did have more adverse outcomes than those who did not move at that age.
    Keywords: Childhood; Residential mobility; Internal migration; Movers; Outcomes
    JEL: O15 R23
    Date: 2013–09
  2. By: Şule Akkoyunlu
    Abstract: Migration not only contributes to development through financial remittances, but also through flows of knowledge and through the diffusion of social, cultural and political norms and values. In fact, these more intangible contributions are more appreciated during economic and financial crises, as financial remittances become unstable or decrease in those circumstances. This paper, therefore, addresses the effect of migration on women’s empowerment in Turkey. The number of women in parliament in Turkey is chosen as a gauge of women’s empowerment and is explained by the emigration rate, the relative education of women to men, and a measure of democracy. Utilization of data over six decades from 1960 until 2011 gives the possibility that these series can be spuriously correlated. Therefore, the paper addresses the issue of spurious correlation in an analytical way. Spurious correlation is the risk of linking the share of women in parliament, for example, to the emigration rate when in fact there is no association. This study adopts the bounds testing procedure as a method to determine and to avoid spurious correlation. The results of bounds testing gives clear-cut evidence that women’s empowerment, the share of women in parliament in the present context, is related to the emigration rate, the relative education of women and to a measure of democracy. The bounds-testing procedure is replicated for emigration flows by destination country groups such as European and other core OECD countries, Arab countries, and Russia and CIS (Commonwealth Independent States) countries. Again, it is found that the share of women in parliament is related to the country groups with the largest effect in European and core OECD countries. The results are robust for the inclusion of asylum seekers and refugees in the emigration data. These results have important policy implications for sending as well as for destination countries, implications which are discussed in the paper.
    Keywords: Emigration, Social Remittances, Women's Empowerment, Women share in parliament, Turkey
    Date: 2013–10
  3. By: Ager, Philipp; Brückner, Markus
    Abstract: We examine the effect of genetic diversity on economic development in the United States. Our estimation strategy exploits that immigrants from different countries of origin differed in their genetic diversity and that these immigrants settled in different regions. Based on a sample of over 2250 counties, we find that increases in genetic diversity of US counties that arose due to immigration during the 19th century had a significant positive effect on US counties' economic development. We also detect a significant positive long-run effect of 19th century immigrants' genetic diversity on contemporaneous measures of income.
    Keywords: Economic Growth, Genetic Diversity, Immigration, Melting Pot
    JEL: J11 O51 Z13
    Date: 2013–12–04
  4. By: Lisa Chauvet (IRD, UMR DIAL, PSL, Université Paris-Dauphine); Flore Gubert (IRD, UMR DIAL, PSL, Université Paris-Dauphine); Marion Mercier (IRD, UMR DIAL, Paris School of Economics); Sandrine Mesplé-Somps (IRD, UMR DIAL, PSL, Université Paris-Dauphine)
    Abstract: This paper explores the impact of Malian migrants' Home Town Associations (HTAs) located in France on the provision of local public goods in Mali. To this end, we compute an original dataset on all the HTAs that have been created by Malian migrants in France since 1981 and geo-localize their interventions on the Malian territory. Thanks to four waves of Malian census, we also build a panel dataset on the provision of a range of public goods in all Malian villages over the 1976-2009 period. These two sources of data allow us to implement a difference-in-differences strategy, and to compare villages with and without an HTA, before and after HTAs developed their activity in Mali. We find that Malian HTAs have significantly contributed to improve the provision of schools, health centers and water amenities over the 1987-2009 period. When looking at the timing of the treatment, we observe that the difference between treated and control villages in terms of water amenities is mainly driven by the second period of observation (1998-2009), while schools and health centers exhibit significant differences during the whole period.________________________________ Nous analysons l’impact des associations de migrants (AM) de Maliens vivant en France sur la disponibilité en biens publics au Mali. Pour ce faire, nous avons constitué une base originale de données qui recense l’ensemble des AM maliennes enregistrées au Journal Officiel français depuis 1981 et qui géo-référence leurs lieux d’intervention. Cette base est couplée avec quatre recensements exhaustifs qui permettent de connaître la disponibilité en biens publics de chaque village malien de 1976 à 2009. En mettant en oeuvre une estimation en double différences, nous montrons que les AM maliennes ont significativement contribué à l’augmentation du nombre d’écoles, de centres de santé et d’adduction d’eau sur la période 1987-2009. Plus précisément, on observe que la différence entre le groupe de villages traités et le groupe de contrôle concernant l’adduction en eau est dû à des investissements menés durant la seconde période (1998-2009) tandis que les financements des AM concernant les écoles et les centres de santé ont eu lieu tout au long de la période 1987-2009.
    Keywords: Local public goods, Migration, Mali, biens publics locaux.
    JEL: F22 H41 H75 O55
    Date: 2013–11
  5. By: Smith, James P. (RAND); Delaney, Liam (University of Stirling)
    Abstract: Our focus will be on the role of migration to the United States from a set of important European sending countries as a device for improving the human capital of the children and grandchildren of migrants as measured by their education. In this paper, we derive a new and conceptual more appropriate measure of the generational gains in schooling attributable to migration by taking into account the correct counter-factual – the generational education gains that would have taken place if these migrants had remained in their sending countries. We find that the two European countries where the descendants gained the most in terms of human capital are Italy and Poland.
    Keywords: human capital, education, migration
    JEL: I24 I25
    Date: 2013–11
  6. By: Sona Kalantaryan
    Abstract: In this study I empirically examine the impact of immigration on the dynamics of housing prices across Italian provinces from 1996 till 2007. The massive debate upon the impact of current intensive immigration flows on the wellbeing of the native Italian population and Europeans in general is mainly focused on labor market outcomes which is, however, only one of the channels though which the real income and wealth can alter. This paper contributes to our understanding of the influence that recent intensive immigration flows have on the Italian economy by estimating its impact on the housing market. Moreover, it exploits different methodological approach with respect to the approach dominating in migration literature. Using the number of valid residence permits as a measure of immigration stock and the self-reported housing values from the Survey of Households Income Wealth in Italy I find that the increase in the concentration of immigrants in the Italian provinces has a positive but declining effect on the average housing prices in provinces. The obtained results also indicate that an increase of in immigrant population leads to an increase in average housing prices. The performed Difference and System GMM estimations confirm both the positive response of average housing prices to the increase in immigrant population and the non-linearity of its response to immigrants’ concentration in all specifications.
    Keywords: Housing market, Immigration, GMM, House prices, Italy
    Date: 2013–11
  7. By: Batista, Catia (Universidade Nova de Lisboa); Umblijs, Janis (Ragnar Frisch Centre for Economic Research)
    Abstract: Do more risk loving migrants opt for self-employment? This is a question especially relevant for policymakers designing selective immigration policies in countries of destination. In order to provide a rigorous answer to it, we use a novel vignette-adjusted measure of risk preferences in the domain of work to investigate the link between risk aversion and entrepreneurship in migrant communities. Using a representative household survey of the migrant population in the Greater Dublin Area, we find a significant negative relationship between risk aversion and entrepreneurship. In addition, our results show that the use of vignettes improves the significance of the results, as they correct for differential item functioning (where respondents interpret the self-evaluation scale in different ways) between entrepreneurs and non-entrepreneurs, and corrects for variation in the use of self-evaluation scales between migrants from different countries of origin.
    Keywords: migration, risk aversion, entrepreneurship
    JEL: F22 J01 J15 J61 L26
    Date: 2013–11
  8. By: Vikhrov Dmytro
    Abstract: The developed theoretical model analyzes the welfare effects of labor migration. I find that for the receiving country immigration enhances welfare as long as the marginal benefits to the natives' income exceed the social costs of immigration. Over-emigration of workers generated by free mobility is welfare detrimental to the source country because of the diaspora effect - migrants negatively affect their own income. The source country prefers to coordinate the immigration quota with the destination country, because the coordinated solution internalizes the negative diaspora effect. Contrary to popular opinion, under certain conditions unilateral enforcement of the immigration quota benefits the source country also, because it reduces the extent of the migrants' income decline.
    Keywords: migration costs; wage effect; immigration policy; coordination;
    JEL: F22 J15 D61 E61
    Date: 2013–09
  9. By: Luca Barbone; Matthias Luecke
    Abstract: Migration from Eastern Partnership (EaP) countries has only become a large and important phenomenon over the last twenty years At its heart, labour migration reflects entrepreneurial decisions by individuals and families looking to improve their lives while facing complex challenges and opportunities. In the past, the language of "migration management" was sometimes used to suggest that migrants and migration needed to be “managed” to achieve government objectives. By contrast, in adopting a migrant-centered perspective, our project aimed to understand, first, EaP migrants’ incentives and the effects of migration on migrants and their families, on non - migrants in the country of origin, and on residents of the destination country. Second, we investigated how labour migration is shaped by and interacts with a wide range of government policies and which policy interventions can enhance the benefits of migration for the affected groups.
    Keywords: Labor market, social policy and social services, Europe, Eastern Europe, Caucasus and Central Asia, labour migration, Eastern Partnership, EU
    Date: 2013–10
  10. By: Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Isilda Mara (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Abstract The study analyses migration intentions and expected length of stay in the host country, taking account of the propensity to change (or retain) migration plans during the course of the migration experience in the host country. We analyse the particular case of Romanian migrants in Italy, using a survey conducted in 2011 in the context of the TEMPO/NORFACE project. We used different specifications to analyse the exogeneity vs endogeneity of steady/changing migration plans regarding expected length of stay and migration intentions. The survey and the analysis showed that Romanian migrants, both men and women, who arrived in Italy after May 2004 have modified their migration plans, the main determinants being employment and family reasons. Migrants who have maintained similar migration plans to the ones upon arrival are mostly those with a preference for long-term and permanent migration. Gender differences in analysing migration plans matter as diverse patterns emerge for men compared to women. Differently from women, men plan their length of stay based on the employment context, especially on whether the job is adequate to the level of qualification and whether earnings match expectations. For women, on the other hand, family context variables play a significant role. The paper concludes that migration intentions could be a good predictor of migration behaviour if we account for the endogeneity of steadiness/switching of such plans.
    Keywords: migration, temporary/permanent, Romanian migrants, applied econometrics, bivariate ordered probit, migrants in Italy
    JEL: J61 D84
    Date: 2013–09
  11. By: Paweł Kaczmarczyk
    Abstract: The twentieth century is commonly acknowledged as the “age of migration”. During the last 100 years population movements have intensified and, more importantly, their structure changed significantly. In terms of the geographical distribution of immigrants the European Union and traditional immigration countries became the most important target regions. In these countries immigration is commonly presented as a threat to host economies and societies. Along with this the fiscal impact of immigration are ones of the most controversial topics in recent debates on migration. Against this background this paper aims at discussing and synthesizing both theoretical and empirical literature on the fiscal impact of immigration. We hypothesize that the fiscal impacts of immigration are complex and dynamic and thus a proper assessment demands a careful empirical strategy. There is no clear or coherent theoretical framework to explain the fiscal effects of migration. The outcomes of empirical studies are mixed and they are not unequivocal. Notwithstanding, they show that, generally speaking, the fiscal impact of immigration is small. Moreover, there is no clear impact of skill level on the fiscal position of foreigners. What really matters is, instead, the type of migration, labor market incorporation (absorption) and the institutional framework at destination (the structure of the welfare state). In terms of empirical strategies we would recommend dynamic approaches, which account for the effects resulting from demographic ageing.
    Keywords: welfare system, distributional and fiscal impacts of immigration, welfare magnet
    JEL: F22 H55 H61 J11 J61 J68
    Date: 2013–11
  12. By: Michael Good
    Abstract: I estimate the effect that migrants have on international trade between states of current residence and states of origin. The pro-trade effect of migration has been thoroughly examined since the mid-1990s, connecting both destination countries with origin countries and destination sub-national divisions with origin countries, respectively. However, a recent emphasis on the importance of geographic proximity to the migration-trade link leads me to pose the questions of how localized the trade-enhancing effect of migrants actually may be and how proximity matters for this relationship. My analysis provides the first results as to the migration-trade nexus at the state level for both places of destination and origin, relying on a unique data set allowing the mapping of Mexican-born migrants' US states of residence to Mexican states of origin; this ensures a more precise measurement of both migrant networks and other potential determinants of international trade, including the distance and mass variables fundamental to the standard gravity model. In addition to an augmented gravity model, I employ generalized propensity scores in examining the potential of nonlinearities in the migration-trade relationship. Furthermore, I unmask the distinct levels of geographic proximity that a single migration estimate disguises, estimating statistically significant elasticities of exports to both in-state and neighboring-state migration. These figures are not only qualitatively but also quantitatively important, corresponding to partial contributions of $1984 (in-state) and $538 (neighboring-state) to annual exports between respective US and Mexican states associated with each average additional migrant.
    JEL: F1 F2 J6
    Date: 2013–12–08
  13. By: Alpaslan Akay (Institute for the Study of Labor); Corrado Giulietti (Institute for the Study of Labor); Juan D. Robalino (Cornell University); Klaus F. Zimmermann (Institute for the Study of Labor)
    Abstract: The main objective of this paper is to propose a systematic approach to empirically analyse the relationship between sending remittances and the utility of migrants, as proxied by their subjective well-being (SWB). Using data from a new survey on China, we estimate models in which a SWB measure is regressed on the level of remittances, finding a sizeable positive correlation. The estimates vary with the socio-economic characteristics of migrants, migration experience and the diversity of family arrangements. As a complementary objective, we use SWB measures to elicit the motivations behind remittances, finding evidence that both altruistic and contractual motivations are at work among rural-to-urban migrants in China.
    Keywords: Migrants, subjective well-being, remittances
    JEL: J61 D64 I3
    Date: 2013–02
  14. By: Simone BERTOLI (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Herbert BRÜCKER (IAB - IAB - University of Bamberg); Jesús FERNÁNDEZ-HUERTAS MORAGA (IAE - FEDEA - CSIC)
    Abstract: The European crisis has diverted migration flows away from countries affected by the recession towards Germany. The diversion process creates a challenge for traditional discrete-choice models that assume that only bilateral factors account for dyadic migration rates. This paper shows how taking into account the sequential nature of migration decisions leads to write the bilateral migration rate as a function of expectations about the evolution of economic conditions in alternative destinations. Empirically, we incorporate 10-year bond yields as an explanatory variable capturing forward-looking expectations and apply our model to an empirical analysis of migration from the countries of the European Economic Association to Germany in the period 2006-2012. We show that disregarding alternative destinations leads to substantial biases in the estimation of the determinants of migration rates.
    Keywords: cerdi
    Date: 2013–12–04
  15. By: Plamen Nenov (Norwegian Business School (BI))
    Abstract: This paper examines the importance of regional labor reallocation for unemployment and studies the link between inter-regional mobility and reallocation. I construct a multi-region economy with segmented labor markets, endogenously determined regional house prices, and limited worker mobility, and structurally estimate it using state level data for the U.S. The estimated model can account for the comovements of relative house prices and unemployment with gross out- and in-migration observed in a panel of U.S. states. The estimation reveals large reallocation barriers across local labor markets in the form of imperfect directed migration, relative house price differences compensating for labor market differences, and a high moving cost for unemployed workers. These reallocation barriers dampen the response of individual migration decisions to regional labor market differences and contribute to regional mismatch and to shifts in the U.S. Beveridge curve. I apply this framework to understand the reallocation effects of the recent housing bust in the U.S.
    Date: 2013

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