nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2014‒03‒15
twenty papers chosen by
Yuji Tamura
La Trobe University

  1. Impact of Internal Migration on Political Participation in Turkey By Ali T. Akarca; Aysit Tansel
  2. Turning Back to Turkey - or Turning the Back to Germany?: Remigration Intentions and Behavior of Turkish Immigrants in Germany between 1984 and 2011 By Claudia Diehl; Elisabeth Liebau
  3. Cultures of Female Entrepreneurship By Foreman-Peck, James; Zhou, Peng
  4. Entrepreneurship and Immigration: A Study of Africans in the Korean Economy By DeLancey, Rebecca Mbuh
  5. Economic Enclaves or Bridges to the Global Economy? Foreign and Diaspora Investments in Developing Countries By Vito Amendolagine; Nicola D. Coniglio
  6. Two Centuries of International Migration By Tim Hatton; Joseph P. Ferrie
  7. Are immigrants a burden for the state budget? Review paper By Pawel Kaczmarczyk
  8. Was migrating beneficial? Comparing social mobility of Turks in Western Europe to Turks in Turkey and Western European natives By Carolina V. Zuccotti; Harry Ganzeboom; Ayse Guveli
  9. The Impact of Internal Migration on Local Labour Markets in Thailand By Eliane El Badaoui; Eric Strobl; Frank Walsh
  10. The global race for talent: Europe's migration challenge By Rainer Münz
  11. Reforming Korea's Migration Policy By Kim, Soojin
  12. Ethnic Goods and Immigrant Assimilation By Abdulloev, Ilhom; Epstein, Gil S.; Gang, Ira N.
  13. The Impact of Resident Status Regulations on Immigrants' Labor Supply: Evidence for France By Joachim Jarreau
  15. The Dynamic Effects of Changes to Japanese Immigration Policy By Ryne Belliston; Scott Bradford; Kerk L. Phillips
  16. How does immigration affect natives’ task-specialisation? Evidence from the United Kingdom By Bisello, Martina
  17. Migration and Regional Sorting of Skills By Tano, Sofia
  18. The impact of Migrant Workers ' Remittances on the Living Standards of families in Morocco: a Propensity Score Matching Approach By Miftah, Amal; Bouoiyour, Jamal
  19. Remittances and Child Labour in Africa: Evidence from Burkina Faso By Bargain, Olivier; Boutin, Delphine
  20. Does federalism induce patients’ mobility across regions? Evidence from the Italian experience By Elenka Brenna; Federico Spandonaro

  1. By: Ali T. Akarca (Department of Economics, University of Illinois at Chicago); Aysit Tansel (Department of Economics, METU)
    Abstract: During last sixty years, Turkish population moved from one province to another at the rate of about 7-8 percent per five-year interval. As a consequence of this massive internal migration, population residing in a province other than the one they were born in increased from 12 percent in 1950 to 39 percent in 2011. Impact of this population instability on provincial turnout rates in 2011 parliamentary election is studied, controlling for the effects of other socio-economic, demographic, political and institutional factors. Consequences of migration both at destinations and origins are considered. According to robust regressions estimated, the relationship between turnout and education is inverse U-shaped, and between turnout and age, U-shaped. The latter reflects generational differences as well. Large population, large number parliament members to be elected from a constituency, participation by large number of parties, and existence of a dominant party depress the turnout rate. A percentage increase in the proportion of emigrants among the people born in a province reduces turnout rate in that province by 0.13 percentage points, while a percentage increase in the ratio of immigrants in the population of a province reduces it by 0.06 percentage points. However, at destinations where large numbers of immigrants from different regions are concentrated, the opportunity afforded to immigrants to elect one of their own, reduces the latter adverse impact significantly and in some cases turns it to positive.
    Keywords: election turnout, internal migration, political participation, Turkey, voter behavior.
    JEL: D72 J61
    Date: 2014–03
  2. By: Claudia Diehl; Elisabeth Liebau
    Abstract: By applying event-history analysis to all available waves of the German Socio-Economic Panel, we analyze how remigration intentions and actual remigration of Turkish migrants to Germany have evolved over time. The study draws from a broad set of theoretical approaches to remigration and it takes a different focus than previous studies by concentrating on long-term change in these rates. Our findings reveal an increase in remigration intentions and rates for first generation migrants after the turn of the millennium. Those who plan to return have a stronger emotional attachment to Turkey than those who plan to stay. Nevertheless, the two groups differ neither with respect to their educational levels nor in terms of their identification with Germany and perceptions of discrimination. Similarly, the small though slightly increasing group of immigrants that actually returns does not have a clear profile in terms of educational level, national identification, and perceptions of being disadvantaged in Germany. We thus argue that for first-generation migrants from Turkey after 2001, rising remigration intentions and actual remigration are unrelated to their integration into German society. Rather, the increase seems to be triggered by macro-structural changes in the country of origin.
    Date: 2014
  3. By: Foreman-Peck, James (Cardiff Business School); Zhou, Peng (Cardiff Business School)
    Abstract: The present research shows how entrepreneurial culture contributes to the widely noted difference in entrepreneurial propensities between men and women. The consequences of the assumed differential importance of household and family generate testable hypotheses about the gender effects of entrepreneurial culture. The principal hypothesis is that there is a greater chance of females in ‘unentrepreneurial’ cultures being relatively entrepreneurial compared to males. Also women from different entrepreneurial cultures show greater similarity of behaviour (lower variance) than men. But proportionate gender gaps within entrepreneurial cultures are less than those between males of different cultures. These hypotheses are tested on US immigrant data from the 2000 census and are not rejected.
    Keywords: Entrepreneurship; Culture; Gender; Migrants
    JEL: D01 J15 J23 J61 J16
    Date: 2014–01
  4. By: DeLancey, Rebecca Mbuh
    Abstract: Entrepreneurship has long been recognized as an important player in the development of Korea's economy. This is clearly demonstrated in the humble beginnings of Korea's giant conglomerates such as Samsung, Hyundai, Posco, and LG that started as small businesses. This research presents analysis of entrepreneurial activities of African immigrants in Korea. This study combines data from questionnaires of 45 respondents and in-depth interviews with six of the respondents. The findings of this present research are different from other studies in that this study shows how immigrants fill economic gaps by creating employment for themselves while providing needed services to the immigrant and Korean populations. By creating informal employment, immigrants demonstrate that they are assets in their new environments. Coping mechanisms utilized by immigrant entrepreneurs as they confront challenges that might hinder them from pursuing entrepreneurial activities were revealed in this study.
    Keywords: African immigrant entrepreneurs, Korea, entrepreneurial opportunities, entrepreneurial challenges, coping strategies
    JEL: M13 M16
    Date: 2014–02–15
  5. By: Vito Amendolagine; Nicola D. Coniglio
    Abstract: This paper examines the main determinants of linkages between foreign and domestic firms in developing countries. Based on existing evidence, we highlight the relevance of linkages generated by MNEs in developing countries and then we discuss the factors which boost or hamper the interactions between foreign and domestic firms and draw some policy implications. A particular attention is given to diaspora investments – i.e. investments carried out by members of the diaspora or return migrants – that represent a potentially powerful engine of growth and structural change in poor countries.
    Keywords: Foreign Direct Investment, local sourcing, diaspora, developing countries
    Date: 2014–01
  6. By: Tim Hatton; Joseph P. Ferrie
    Abstract: This is a draft chapter for B. R. Chiswick and P. W. Miller (eds.) Handbook on the Economics of International Migration. It provides an overview of trends and developments in international migration since the industrial revolution. We focus principally on long-distance migration to rich destination countries, the settler economies in the nineteenth century and later the OECD. The chapter describes the structure, direction and determinants of migration flows and the assimilation experience of migrants. It also examines the impact of migration on destination and source countries, and explores the political economy behind the evolution of immigration policy. We provide an historical context for current debates on immigration and immigration policy and we conclude by speculating on future trends.
    Keywords: International migration history, development of immigration policy
    JEL: F22 N30 N40
    Date: 2014–02
  7. By: Pawel 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.
    Date: 2013–11–04
  8. By: Carolina V. Zuccotti (European University Institute); Harry Ganzeboom (Vrije Universiteit Amsterdam); Ayse Guveli (University of Essex)
    Abstract: Research on educational and occupational achievement of immigrants in Europe has mainly followed an assimilationist approach, focused on comparisons with natives or other immigrant groups (see for example Heath & Cheung 2007). However, this may not be at all the perspective that migrants themselves find most relevant, if we assume that people move to improve their life chances relative to what they would have been in the origin society without migrating. Following this argument, the paper studies social mobility and status attainment among Turkish migrants and their descendants in nine Western European countries in comparison with Turks in Turkey (and native populations in Western Europe). The emphasis is therefore on the origins, through a twofold perspective: with respect to parents and with respect to non-migrants in Turkey. This way, the widely used approach of 'ethnic penalties' (also included in the analysis) is complemented with a focus on the benefits (and limitations) of migrating, not only in terms of average achievements with respect to those left behind, but also in terms of the possibilities that migration opens for social mobility processes. The study is based on a combined dataset from the European Social Survey (2002-2010) and the European Values Study (2008). Among the main findings, the paper shows that 'ethnic penalties' in terms of occupational status have been declining between the generations, as more Turks in Western Europe have been educated in the destination country. However, the comparison with Turks in Turkey shows that migration has not favoured immigrants on all accounts. While second generation Turks are on average less dependent on their parental background than Turks in Turkey, and those with lower class backgrounds (which comprises most of cases) are indeed better able to move relative to their parents in terms of education, they continue to be disadvantaged in terms of the occupations they get. This is due to the fact that in Turkey the same education leads to a higher occupational status, which makes the occupational 'gains' that second generation Turks obtain in Western Europe (on average) transform into lags with respect to those left behind. These lags also seem to be particularly pronounced for higher educated women.
    Keywords: Turkish migrants; first generation; second generation; Turks in Turkey; social mobility; status attainment
    JEL: J15
    Date: 2014–03–04
  9. By: Eliane El Badaoui; Eric Strobl; Frank Walsh
    Abstract: We estimate the impact of internal migration on local labour markets in Thailand.Using an instrumental variable approach based on weather and distance we estimate an exogenous measure of the net migration in ow into each region. Our results show that instrumenting for the possible endogeneity of net inward migration is crucial to the analysis. The results suggest substantial adjustments in hours worked and weekly wages in response to short term changes in labour supply for low skilled males. We find no effect on high skilled workers. A theoretical section shows that a reduction in hours per worker in response to an increase in inward migration is consistent with the predictions of a standard search model.
    Keywords: Internal migration, Labour markets, Thailand
    JEL: O15 J10
    Date: 2014
  10. By: Rainer Münz
    Abstract: See also comment '"Give me your tired, your poor, your huddled masses"' In an ageing world with demographic and economic imbalances, the number of international migrants is likely to rise during the twenty-first century. The geography of migration flows is changing, however. Mobile people will be increasingly attracted by faster-growing economies. Therefore, some traditional destinations in western Europe will face stronger competition for skilled labour â?? not least from countries like China where the working-age population will shrink after 2020. At the same time, the sentiment in many European receiving societies is turning against migration and intra-European Union mobility. In the short run, Europe needs more labour mobility between EU member states given excessively high unemployment reported in some regions, while others face a shortage of skills. In the long run this will not be sufficient to close gaps in European labour markets. But many Europeans are not ready to accept more international migrants, and give their support to political parties with restrictive agendas. This creates at least three challenges. First: organising political majorities in favour of more proactive migration policies. Second: making Europe more attractive for mobile people with talent and skills. Third: moving away from unilateral migration policies towards negotiated win-win solutions aiming at reducing the costs of, and enhancing the welfare gains from, migration and remittances
    Date: 2014–03
  11. By: Kim, Soojin
    Abstract: In the era of globalization, the notion of the migrant worker is not an unfamiliar one, albeit not a welcomed notion by countries intent on maintaining the semblance of a homogeneous society. As one of the earlier industrialized countries in East Asia, the Republic of Korea experienced firsthand the benefits of having migrant workers. It would certainly not be an understatement to state that the migrant worker has played an integral role in helping the Korean economy recover from the Asian economic crisis in the late 1990s and sustain itself in recent years. With the number of migrant workers only expected to grow in years to come, the impact of the migrant worker on Korean society will no longer be economical, but also social, political, and cultural. No longer is the migrant worker a temporary solution to overcome labor shortages but rather, it is, and has become a permanent part of today's Korean society. It would therefore seem imperative that the Korean government devise long-term strategies as to how it will address these issues. This paper seeks to highlight the emergence and evolution of the migrant worker in the Republic of Korea, discuss consequences and implications for Korea's continued migration policy, and make recommendations for reforming Korea's migration policy.
    Keywords: Migration; Reformation; Korea; Migrant Worker; Labor; Human Resources Development
    JEL: J4 J40 J61
    Date: 2014–02–15
  12. By: Abdulloev, Ilhom (Open Society Institute Assistance Foundation, Tajikistan); Epstein, Gil S. (Bar-Ilan University); Gang, Ira N. (Rutgers University)
    Abstract: Some immigrants try to keep their ethnicity hidden while others become ever deeply more mired in their home culture. We argue that among immigrants this struggle manifests itself in the ethnic goods they choose to consume. Different types of ethnic goods have vastly different effects on immigrant assimilation. We develop a simple theoretical model useful for capturing the consequences of this struggle, illustrating it with examples of Central Asian assimilation into the Muscovite economy.
    Keywords: assimilation, migrants, culture, ethnic goods
    JEL: J15
    Date: 2014–02
  13. By: Joachim Jarreau (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)
    Abstract: Many OECD countries have changed the rules for immigrants in recent decades, generally making harder to enter and to stay. France is one example. This paper studies the immigrants' response to the 2004 reform of the immigration law, which made it harder for foreigners to obtain resident status. The strategy for identification exploits a discontinuity in exposure to the reform, determined by the time of entry. The first result is that the 2004 reform prompted a wave of departures among low-skilled, unemployed, unmarried men. This effect is observed among those with previous work experience in France and searching for work, indicating that the difficulty to find a job without resident status creates an incentive for outmigration. Second, the obtention of resident status lowers significantly but marginally the labor supply of women, consistently with an adjustment role of women's work, and with a small substitution effect of labor income with welfare benefits. Overall, these results suggest that restrictions on access to resident status prompted outmigration, but not among the population with the most elastic labor supply. Thus, the reform did not reach its main objectives: selection occurred, but not of those less willing to work; cutting access to benefits increased labor supply, but only marginally.
    Keywords: Immigration Policy, Labor Markets, Welfare Magnets.
    JEL: F22 J61 J65
    Date: 2014–02–28
    Date: 2014
  15. By: Ryne Belliston (Department of Economics, Brigham Young University); Scott Bradford (Department of Economics, Brigham Young University); Kerk L. Phillips (Department of Economics, Brigham Young University)
    Abstract: This paper constructs a single-sector dynamic stochastic general equilibrium (DSGE) model for a trading economy. We are able to examine the effects on output, consumption, factor prices, and utility. We do this for both steady states and for transition paths. By including macroeconomic shocks, we are able to calculate confidence bands around our policy impulse response functions. We find that while the effects of immigration are likely to be observable in aggregate data, the welfare effects on households of all types is small relative to the natural fluctuations in utility coming from economic fluctuations at business cycle frequencies. The effects are also small relative to the upward trend in utility due to technical progress. We find that household utility rises most for immigration policies that favor skilled immigrants, though different types of domestic households will favor slightly different policies.
    Keywords: labor migration, factor mobility, dynamic general equilibrium, Japan
    JEL: F15 F22 F42
    Date: 2014–03
  16. By: Bisello, Martina
    Abstract: In this paper we empirically test the predictions of Peri and Sparber (2009) model of comparative advantage in tasks performance to evaluate whether in the United Kingdom immigration affected the way natives specialise in the task they perform on the job. Using Labour Force Survey and UK Skills Survey data from 1997 through 2006, we find that less-educated natives responded to immigration inflows of similarly educated workers by increasing their supply of communication tasks, relative to manual tasks. We also show that this effect varies across demographic groups, being higher among men, young people and workers with primary education (or less).
    Date: 2014–03–07
  17. By: Tano, Sofia (Department of Economics, Umeå School of Business and Economics)
    Abstract: This thesis consists of an introductory part and four papers. Paper [I] estimates jointly the choice of whether to enroll in education and the choice of location among young people. Being a particularly mobile group, the location choices of young individuals shape much of the regional distribution of human capital, growth, and local public sector budgets. Applying Swedish register data on nest leavers, we seek to determine factors deciding the education and location choice of young people. The results indicate a systematic selection higher education based on school grades and preferences for locations with higher per capita tax bases and with lower shares of elderly people. The importance of family networks for the choice of location is confirmed. Paper [II] examines how individual ability, reflected by the grade point average (GPA) from comprehensive school affects the probability of migration among university graduates. The econometric analysis applies detailed micro-data of two entire cohorts of young individuals retrieved from the Swedish population registers. The results indicate that individual abilities are strongly influential both concerning completion of a university degree and for the migration decision. In addition, we find a positive relationship between the GPA and migrating from regions with lower per capita tax bases and/or a relatively small share of highly educated individuals. Analogously, individuals with a high GPA tend to stay in more densely populated regions, suggesting a clustering of human capital vis-à-vis school grades. Paper [III] estimates the relationship between migration across labour market regions and the subsequent changes in earnings by using the GPA from the final year of comprehensive school as a proxy for ability. This measure aims to capture heterogeneity in the returns to migration for individuals conditional on education attainment. Using Swedish register data on young adults, a difference-in-difference propensity score matching estimator is applied to estimate income differences measured up to seven years after migration. The results show variation between different ability groups regarding the returns to regional migration. There are indications of larger gains for individuals holding top grades, while the bottom half seems to benefit less, or face slightly negative effects. Paper [IV] examines whether power couple formation and the location choice of such couples are driven by factors already inherent in young people during their formative school years. The paper also extends the analysis by modeling location choice among different sizes of labor market areas, given different power statuses of the couples. Based on analysis of Swedish register data, we produce evidence that power spouses evolve from the population of high achieving school age individuals; the latter is identified by high academic performance during their years of compulsory school. Regarding location choice, the results indicate that power couples display a relatively high tendency to migrate from their regions of origin to large cities.
    Keywords: Agglomeration; early markers; human capital; income; interregional migration; individual ability; location choice; marital matching; propensity score matching; regional clustering; skills; university graduates
    JEL: I21 I23 J12 J24 J31 J61 R23
    Date: 2014–03–04
  18. By: Miftah, Amal; Bouoiyour, Jamal
    Abstract: This article attempts to assess empirically the impact of remittances on household expenditure and relative poverty in Morocco. We apply propensity score matching methods to the 2006/2007 Moroccan Living Standards Measurement Survey. We find that migrants’ remittances can improve living standards among Moroccan households and affect negatively the incidence of poverty. The results show a statistically significant and positive impact of hose remittances on recipient households’ expenditures. They are also significantly associated with a decline in the probability of being in poverty for rural households; it decreases by 11.3 percentage points. In comparison, this probability decreases by 3 points in urban area.
    Keywords: Poverty; Remittances; propensity score matching; Morocco;
    JEL: F24 I32 O15 O55
    Date: 2014–02
  19. By: Bargain, Olivier (University of Aix-Marseille II); Boutin, Delphine (EDHEC Business School)
    Abstract: This paper explores the effects of remittance receipt on child labour in an African context. We focus on Burkina Faso, a country with a high prevalence of child labour and a high rate of migration. Given the complex relationship between remittance receipt and child labour, our identification relies on different instruments capturing the employment conditions in remittance-sending countries. We first find that receiving remittances has no significant effect on child labour on average. However, when the disruptive effect from the absence of a family member is ruled out, remittances significantly reduce child labour. We provide an extensive robustness check and estimate heterogeneous effects. These show no gender difference but a significant age effect: remittances affect the labour market participation of younger children only, suggesting a progressive integration of children into work activities.
    Keywords: remittances, migration, child labour, Africa
    JEL: F24 I25 J22
    Date: 2014–02
  20. By: Elenka Brenna (Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Federico Spandonaro (Università degli Studi di Roma "Tor Vergata")
    Abstract: In recent years, the accreditation of private hospitals followed by the decentralisation of the Italian NHS into 21 regional health systems, has furnished a good empirical ground for investigating the "voting with their feet" Tiebout principle. We consider the competition between public and private hospitals - and the rules supervising the financial agreements between regional authorities and providers of hospital care - as a potential determinant factor for cross border mobility in the Italian NHS. The model we propose considers an institutional variable set at a regional level that, ceteris paribus, succeeds in driving CBM flows towards accredited private hospitals. We assume that some northern and central regions accredited private providers not only to meet the internal need of hospital care, but also with the aim of attracting patients' inflows from other regions, particularly from the South of Italy, where the services supplied do not cover such a broad range of hospital specialization and/or do not guarantee the same perceived quality of care. The geographical gradient in this context is considerable: in 2011 the southern regions show a negative balance of - 1.046 billion euro for patients' migration, while the northern ones report a surplus of 863 million euro. Evidence, both from the normative inspection and the statistical analysis, suggests the presence of strategic incentives provided by some regions with the twofold objective of accrediting a good quality health system and contextually overcoming the risk of production excess by driving financial resources from patients' inflows.
    Keywords: patient choice, hospital accreditation, competition, cross border mobility, federal NHS.
    JEL: I11 I18 H3
    Date: 2014–02

This nep-mig issue is ©2014 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.