nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2015‒01‒26
twelve papers chosen by
Yuji Tamura
La Trobe University

  1. House Value, Crime and Residential Location Choice By ZHANG, ZHAOHUA; HITE, DIANE
  2. Prospects and Challenges of Brain Gain from ASEAN Integration By Siar, Sheila V.
  3. Emigration, remittances and corruption experience of those staying behind By Artjoms Ivlevs; Roswitha M. King
  4. How Do Migrants Save? Evidence from the British Household Panel Survey on Temporary and Permanent Migrants versus Natives By Giuseppe De Arcangelis; Majlinda Joxhe
  5. Lifecycle Human Capital Accumulation Across Countries: Lessons From U.S. Immigrants By Tommaso Porzio; Todd Schoellman; Nancy Qian; Benjamin Moll; David Lagakos
  6. Migration, Youth, and Agricultural Productivity in Ethiopia By Brauw, Alan de
  7. Pareto-improving Immigration and Its Effect on Capital Accumulation in the Presence of Social Security By Hisahiro Naito
  8. The Effect of Workers’ Remittances on Poverty in Mexico: A Regional Analysis By Coon, Michael
  9. International migration in Ireland, 2013 By Philip J O'Connell; Corona Joyce
  10. Rural-Urban Migration, Structural Change, and Housing Markets in China By Yang Tang; Ping Wang; Carlos Garriga
  11. Labor Market Integration of German Immigrants and Their Children: Does Personality Matter? By Anna-Elisabeth Thum
  12. Directing Remittances to Education with Soft and Hard Commitments: Evidence from a Lab-in-the-field Experiment and New Product Take-up Among Filipino Migrants in Rome By Giuseppe De Arcangelis; Majlinda Joxhe; David McKenzie; Erwin Tiongson; Dean Yang

    Abstract: Households choose where to live by trading off wages, house prices and local amenities. In this paper, I estimate the effect of crime on household location choice using a two-stage residential sorting model which incorporates the effect of mobility cost. The choice set in this paper is defined at the level of the metropolitan areas. The results from the second stage show that people are willing to pay more to move to a location with lower violent crime occurrences and are willing to pay more to move to a place with higher property crime; however, the effect of violent crime is larger than property crime. When recovering the willingness to pay (WTP) for the two types of crime using elasticities, the results show that people are willing to pay $651 and $977 for a one hundred unit decrease in violent crime and $23 and $27 for a one hundred unit increase in property crime for 2005 and 2010 respectively. The difference in difference results for the sorting model show that people are willing to pay less to move to a location in which the police number increases, and pay more to move to a location where the crime rate decreases while police force increases. The results of the difference in difference analysis, shows that the elasticity of WTP for the increase in police number in the hedonic price model, is slightly lower than that from the sorting model.
    Keywords: Location choice, Crime Rate, Residential Sorting Model, Consumer/Household Economics, Research Methods/ Statistical Methods, R23, R21, C35,
    Date: 2015–02
  2. By: Siar, Sheila V.
    Abstract: This paper suggests that the ASEAN economic integration can be viewed as an opportunity for brain gain for the ASEAN member-countries. The envisaged ASEAN Economic Community (AEC) may boost both South-South and North-South movements of skilled labor as a result of the growth of cross-border education, increased mobility of professional workers with the implementation of the mutual recognition arrangements, and the possible return migration of expatriate professionals to the ASEAN region given a vibrant regional economy in the long run that can provide more competitive remuneration packages. In turn, these will facilitate knowledge exchanges and collaborations, technology transfers, economic and business linkages, investment flows, and increased remittances. However, the more advanced economies in the region will have an edge in exploiting these opportunities in the initial years of the AEC. The ASEAN integration can be a double-edged sword for member-countries that may not be able to improve their competitiveness in the long run.
    Keywords: brain gain, ASEAN Economic Community (AEC), brain drain, cross-border education, mutual recognition arrangements, return migration
    Date: 2014
  3. By: Artjoms Ivlevs (University of the West of England, Bristol); Roswitha M. King (University of the West of England, Bristol)
    Abstract: We examine the effects of emigration and remittances on the corruption experience of migrant household members staying in the countries of origin. We hypothesize that the effects of emigration on corruption can be both positive (via migrant value transfer) and negative (via misuse of monetary remittances). Using Gallup Balkan Monitor survey data in instrumental variable analysis, we find that migrant households are more likely to face bribe situations and be asked for bribes by public officials. At the same time, having relatives abroad reduces the probability of actually paying a bribe. This beneficial effect is offset by receiving monetary remittances.
    Keywords: emigration, corruption, institutions, diaspora externalities, Western Balkans
    JEL: F22 F24 D73
    Date: 2014–01–11
  4. By: Giuseppe De Arcangelis (Dipartimento di Scienze Sociali ed Economiche, Sapienza University of Rome (Italy).); Majlinda Joxhe (Department of Economics and Social Science, American University of Rome John Cabot (Italy).)
    Abstract: This paper investigates the saving behavior of migrants in UK across different dimensions, i.e. comparing temporary versus permanent migrants and migrants versus natives. Established theoretical predictions show that migrants save more when they plan to stay at destination only temporarily as target savers. Our empirical evidence takes into account the contemporaneous choice of savings and remittances. Moreover, when comparing the saving profiles of both natives and migrants, we uncover the weight of observable socio-economic characteristics other than income and wealth. We use the British Household Panel Survey for the period 1991-2008. The estimation results confirm that temporary migrants have a propensity to save 26% per cent higher than permanent migrants in UK. We also introduce an index of financial capability adjusted for income and, when employing the Blinder-Oaxaca decomposition for the Tobit model of saving choice, migrants are more affected by other observable social economic characteristics than natives.
    Keywords: Temporary Migration, Savings, Remittances, Blinder-Oaxaca Decomposition.
    JEL: F22 D91 C40
    Date: 2014–11
  5. By: Tommaso Porzio (Yale University); Todd Schoellman (Arizona State University); Nancy Qian (Yale University); Benjamin Moll (Princeton University); David Lagakos (University of California, San Diego)
    Abstract: Does lifecycle human capital accumulation vary across countries? If so, why? This paper seeks to answer these questions by studying U.S. immigrants, who come from a wide variety of countries but work in a common labor market. We document that returns to potential experience among U.S. immigrants are higher on average for workers coming from rich countries than for those coming from poor countries. To understand this fact we build a Ben-Porath model of lifecycle human capital accumulation that features three potential theories, working respectively through cross-country differences in: selection, skill loss, and human capital accumulation. To distinguish between theories, we use new data on the characteristics of immigrants and non-migrants in a large set of countries. We conclude that the most likely theory is that immigrants from poor countries accumulate relatively less human capital in their home countries before migrating. Our data suggest that lower quality schooling in poor countries may be the proximate cause of their workers’ lower lifecycle human capital accumulation.
    Date: 2014
  6. By: Brauw, Alan de
    Abstract: This paper explores the relationship between migration and agricultural productivity in Ethiopia. Given that there are fairly significant returns to either rural-urban or international migration for labor in Ethiopia, it could be that credit constraints hindering migration start-up are an unexplored constraint against migration. The paper primarily uses the Ethiopia Rural Household Survey panel and a migrant listing exercise completed after the 2009 survey round to explore whether past agricultural productivity (e.g. in 2004) explains later migration. Using standard regression techniques, it finds that among young migrants, there appears to be a positive, significant relationship between productivity and households sending out a migrant. This relationship holds even when proxies for credit are included in the model; the effect appears to, in fact, be stronger among households who are less endowed with land. However, the magnitude of this effect is small. The paper also considers feedback effects from migration to later agricultural productivity; this correlation is weaker suggesting that migration does not have negative productivity impacts.
    Keywords: Agribusiness, Community/Rural/Urban Development, International Development,
    Date: 2015
  7. By: Hisahiro Naito
    Abstract: The effect of accepting more immigrants on welfare in the presence of a pay-as-you-go social security system is analyzed qualitatively and quantitatively. First, it is shown that if initially there exist intergenerational government transfers from the young to the old, the government can lead an economy to the (modified) golden rule level within a finite time in a Pareto-improving way by increasing the percentage of immigrants to natives (PITN). Second, using the computational overlapping generation model, the welfare gain is calculated of increasing the PITN from 15.5 percent to 25.5 percent and years needed to reach the (modified) golden rule level in a Pareto-improving way in a model economy. The simulation shows that the present value of the welfare gain of increasing the PITN comprises 23 percent of the initial GDP. It takes 112 years for the model economy to reach the golden rule level in a Pareto-improving way.
  8. By: Coon, Michael
    Abstract: This study estimates the impact of income remittances on poverty rates by estimating household income under the counter-factual scenario that migration does not occur. Estimation of the counter-factual is performed at the national level, as well as across two separate sub-national groupings of states, first according to historical migration patterns, then according to current migration intensity. Findings indicate that the ability of remittances to reduce poverty levels varies between groups, and across differing poverty thresholds. I find that remittances generally tend to reduce poverty in recipient communities. However, in some cases, I find that remittances lead to an increase in the poverty rate.
    Keywords: Remittances, Poverty, Mexico
    JEL: F24 O15
    Date: 2012–06–21
  9. By: Philip J O'Connell (UCD Geary Institute for Public Policy); Corona Joyce (The Economic and Social Research Institute, Dublin)
    Abstract: This working paper is based on the Irish report to the OECD Expert Group on Migration, and is the key Irish input to the preparation of the annual OECD International Migration Outlook. The principal reference year is 2012, although information relating to early- 2013 is included where available and relevant. Inward migration increased slightly to almost 56,000 in the twelve months to April 2013. With the recession, emigration increased, to over 89,000 over the same period. Net migration, which had peaked at a net inward flow of almost 105,000 in 2006-7 turned negative in 2009-10 and was -33,100 in 2012-13, a similar level of net emigration as the previous year.
    Date: 2015–01–07
  10. By: Yang Tang (Nanyang Technological University); Ping Wang (Washington University in St. Louis); Carlos Garriga (Federal Reserve Bank of St. Louis)
    Abstract: market fundamentals
    Date: 2014
  11. By: Anna-Elisabeth Thum
    Abstract: Educational attainment, length of stay, differences in national background and language skills play an acknowledged important role for the integration of immigrants. But integration is also a social process, which suggests that psychological factors are relevant. This paper explores whether and to what extent immigrants and their children need to believe in their ability to control their own success. To quantify this personal trait I use a measure of an individualÂ’s sense of control overoutcomes in life - such as finding a job. This measure is known in psychology as "the locus of control". I fiÂ…rst estimate an exogenous measure. Then I address the problem that this measure is actually endogeneous in a labor market outcomeequation by employing a model in which the sense of control is an endogenized latent factor in a simultaneous equation model. The determinants of this sense of control as well as its effect on the probability of being employed are examined. The model is estimated using a Bayesian Markov Chain Monte Carlo algorithm. Results with endogenized personality indicate that, on average, immigrants believe less than natives in being able to control outcomes in life, but children of immigrants have already a stronger sense of control than their parents. The paper also fiÂ…nds that sense of control over lifeÂ’s outcomes positively contributes to the probability of being employed. This means that immigrants and their children face a double disadvantage on the labor market: they are disadvantaged because of their status as an immigrant and they have a lower sense of being able to control their situation, which is a personality trait that matters on the labour market.
    Date: 2014
  12. By: Giuseppe De Arcangelis; Majlinda Joxhe; David McKenzie; Erwin Tiongson; Dean Yang
    Abstract: This paper tests how migrants’ willingness to remit changes when given the ability to direct remittances to educational purposes using different forms of commitment. Variants of a dictator game in a lab-in-the-field experiment with Filipino migrants in Rome are used to examine remitting behavior under varying degrees of commitment. These range from the soft commitment of simply labeling remittances as being for education, to the hard commitment of having funds directly paid to a school and the student’s educational performance monitored. We find that the introduction of simple labeling for education raises remittances by more than 15 percent. Adding the ability to directly send this funding to the school adds only a further 2.2 percent. We randomly vary the information asymmetry between migrants and their most closely connected household, but find no significant change in the remittance response to these forms of commitment as information varies. Behavior in these games is then shown to be predictive of take-up of a new financial product called EduPay, designed to allow migrants to directly pay remittances to schools in the Philippines. We find this take-up is largely driven by a response to the ability to label remittances for education, rather than to the hard commitment feature of directly paying schools.
    JEL: C9 D19 F24 O15
    Date: 2015–01

This nep-mig issue is ©2015 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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