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on Economics of Human Migration |
| By: | Jean-Denis Garon; Charles Séguin |
| Abstract: | We study the welfare effects of a revenue-neutral green tax reform in a federation. The reform consists of increasing a tax on a polluting input and reducing that on labor income. Households are fully mobile within the federation. Regions are unequally endowed with a non-renewable natural resource. Resource rents are owned by regions and are redistributed to citizens on a residence basis, which generates a motive for inefficiently relocating to the resource-rich jurisdiction. Since the resource-poor region has a higher marginal product of labor than does the resource-rich region, the tax reform mitigates the scope of inefficient migration. This positive welfare effect may significantly reduce abatement costs of pollution and calls for higher environmental tax, as compared with a model where migration is assumed away. |
| Keywords: | Federalism, Environment, Taxation, Equalization, Mobility, Externalities |
| JEL: | D62 H21 H23 H77 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:lacicr:1509&r=mig |
| By: | Fulford, Scott L. (Boston College); Petkov, Ivan (Boston College); Schiantarelli, Fabio (Boston College) |
| Abstract: | The United States provides a unique laboratory for understanding how the cultural, institutional, and human capital endowments of immigrant groups shape economic outcomes. In this paper, we use census micro-sample information to reconstruct the country-of-ancestry distribution for US counties from 1850 to 2010. We also develop a county-level measure of GDP per capita over the same period. Using this novel panel data set, we investigate whether changes in the ancestry composition of a county matter for local economic development and the channels through which the cultural, institutional, and educational legacy of the country of origin affects economic outcomes in the US. Our results show that the evolution of the country-of-origin composition of a county matters. Moreover, the culture, institutions, and human capital that the immigrant groups brought with them and pass on to their children are positively associated with local development in the US. Among these factors, measures of culture that capture attitudes towards cooperation play the most important and robust role. Finally, our results suggest that while fractionalization of ancestry groups is positively related with county GDP, fractionalization in attributes such as trust, is negatively related to local economic performance. |
| Keywords: | immigration, ethnicity, ancestry, economic development, culture, institutions, human capital |
| JEL: | J15 N31 N32 O10 Z10 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9060&r=mig |
| By: | Moretti, Enrico (University of California, Berkeley); Wilson, Daniel J. (Federal Reserve Bank of San Francisco) |
| Abstract: | Using data on the universe of U.S. patents filed between 1976 and 2010, we quantify how sensitive is migration by star scientists to changes in personal and business tax differentials across states. We uncover large, stable, and precisely estimated effects of personal and corporate taxes on star scientists’ migration patterns. The long run elasticity of mobility relative to taxes is 1.6 for personal income taxes, 2.3 for state corporate income tax and -2.6 for the investment tax credit. The effect on mobility is small in the short run, and tends to grow over time. We find no evidence of pre-trends: Changes in mobility follow changes in taxes and do not to precede them. Consistent with their high income, star scientists’ migratory flows are sensitive to changes in the 99th percentile marginal tax rate, but are insensitive to changes in taxes for the median income. As expected, the effect of corporate income taxes is concentrated among private sector inventors: no effect is found on academic and government researchers. Moreover, corporate taxes only matter in states where the wage bill enters the state’s formula for apportioning multi-state income. No effect is found in states that apportion income based only on sales (in which case labor’s location has little or no effect on the tax bill). We also find no evidence that changes in state taxes are correlated with changes in the fortunes of local firms in the innovation sector in the years leading up to the tax change. Overall, we conclude that state taxes have significant effect of the geographical location of star scientists and possibly other highly skilled workers. While there are many other factors that drive when innovative individual and innovative companies decide to locate, there are enough firms and workers on the margin that relative taxes matter. |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:2015-06&r=mig |
| By: | Bandyopadhyay, Subhayu (Federal Reserve Bank of St. Louis); Pinto, Santiago M. (Federal Reserve Bank of Richmond) |
| Abstract: | Reflecting recent enforcement policy activism of US states, this paper examines federal-state overlap of illegal immigration policy in a spatial context. Keeping the US-Mexico context in mind, we assume that labor from a source nation enters a host nation through bordering states. Once in the host, illegal immigrants may stay in the state of entry or move to another state. The host nation's federal government and/or the state governments choose border and internal enforcement policies, and also provide local goods. As a benchmark, we define the completely centralized solution as the case where the federal government chooses all the policies, while the state governments are passive. At higher levels of decentralization (i.e., as states take more responsibility in deciding some of the policies), the overlap of federal and state policies is associated with both vertical and horizontal externalities. Among other results, we find that if inter-state mobility is costless, internal enforcement is overprovided, and border enforcement and local goods are under-provided under decentralization, leading to relatively high levels of illegal immigration. While inter-state migration costs moderate such overprovision/under-provision, extreme levels of inter-state immobility may lead to too little illegal immigration, and an overprovision of local goods. |
| Keywords: | illegal immigration, vertical and horizontal externalities, border and internal enforcement, publicly provided local goods |
| JEL: | F2 H4 H7 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9061&r=mig |
| By: | Fassio, Claudio (Lund University); Montobbio, Fabio (University of Turin); Venturini, Alessandra (University of Turin) |
| Abstract: | This paper uses the French and the UK Labour Force Surveys and the German Microcensus to estimate the effects of different components of the labour force on innovation at the sectoral level between 1994 and 2005. The authors focus, in particular, on the contribution of migrant workers. We adopt a production function approach in which we control for the usual determinants of innovation, such as R&D investments, stock of patents and openness to trade. To address possible endogeneity of migrants we implement instrumental variable strategies using both two-stage least squares with external instruments and GMM-SYS with internal ones. In addition we also account for the possible endogeneity of native workers and instrument them accordingly. Our results show that highly-educated migrants have a positive effect on innovation even if the effect is smaller relative to the positive effect of educated natives. Moreover, this positive effect seems to be confined to the high-tech sectors and among highly-educated migrants from other European countries. |
| Keywords: | innovation, migration, skills, human capital |
| JEL: | O31 O33 F22 J61 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9062&r=mig |
| By: | Gianmarco I.P. Ottaviano; Giovanni Peri; Greg C. Wright |
| Abstract: | This paper explores the impact of immigrants on the imports, exports and productivity of service-producing firms in the U.K. Immigrants may substitute for imported intermediate inputs (offshore production) and they may impact the productivity of the firm as well as its export behavior. The first effect can be understood as the re-assignment of offshore productive tasks to immigrant workers. The second can be seen as a productivity or cost cutting effect due to immigration, and the third as the effect of immigrants on specific bilateral trade costs. We test the predictions of our model using differences in immigrant inflows across U.K. labor markets, instrumented with an enclave-based instrument that distinguishes between aggregate and bilateral immigration, as well as immigrant diversity. We find that immigrants increase overall productivity in service-producing firms, revealing a cost cutting impact on these firms. Immigrants also reduce the extent of country-specific offshoring, consistent with a reallocation of tasks and, finally, they increase country-specific exports, implying an important role in reducing communication and trade costs for services. |
| JEL: | F16 F22 F23 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21200&r=mig |
| By: | Jesus Crespo Cuaresma; Peter Huber; Anna Raggl |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfepbr:y:2015:m:3:d:0:i:7&r=mig |
| 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 . As such, the focus of the report is largely shaped by the reporting requirements for the preparation of the annual OECD International Migration Outlook. The purpose of the paper is to outline major developments and trends in migration and integration data and policy. The principal reference year is 2013, although information relating to early-2014 is included where available and relevant. |
| Date: | 2015–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:201507&r=mig |
| By: | Bönke, Timm; Neidhöfer, Guido |
| Abstract: | We investigate the hypothesis of failed integration and low social mobility of immigrants. An intergenerational assimilation model is tested empirically on household survey data and validated against administrative data provided us by the Italian Embassy in Germany. Although we confirm substantial inequality of educational achievements between immigrants and natives, we find that the children of Italian immigrants exhibit high intergenerational mobility and no less opportunities than natives to achieve high schooling degrees. These findings suggest a rejection of the failed assimilation hypothesis. Additionally, we evaluate different patterns by time of arrival, Italian region of origin and language spoken at home. |
| Keywords: | Intergenerational Mobility; Education; Integration and Assimilation of Immigrants. |
| JEL: | I24 J15 J62 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:trf:wpaper:502&r=mig |