nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2015‒06‒13
twelve papers chosen by
Yuji Tamura
La Trobe University

  1. Peer effects in language training for migrants By Sprietsma, Maresa; Pfeil, Lisa
  2. The effect of ethnic clustering on migrant integration in Germany By Schaffner, Sandra; Treude, Barbara
  3. Ungrateful children: migration intensity and remittances in Nepal By François Libois; Vincent Somville
  4. The Effect of Board Directors from Countries with Different Genetic Diversity Levels on Corporate Performance By Delis, Manthos; Gaganis, Chrysovalantis; Hasan, Iftekhar; Pasiouras, Fotios
  5. How to Generate Spell Data from Data in "Wide" Format: Based on the Migration Biographies of the IAB-SOEP Migration Sample (SOEP 2013, data set bdp_mig) ; Including the Employed Stata Syntax By Klaudia Erhardt
  6. Can environmental migrations be measured? By Jacques Véron; Valérie Golaz
  7. The Persistence of Local Joblessness By Michael Amior; Alan Manning
  8. Immigration and educational spillovers: evidence from Sudeten German expellees in post-war Bavaria By Semrad, Alexandra
  9. Explaining the Unexplained: Residual Wage Inequality, Manufacturing Decline, and Low-Skilled Immigration By Gould, Eric D
  10. How Do Native and Migrant Workers Contribute to Innovation? By Fassio, Claudio; Montobbio, Fabio; Venturini, Alessandra
  11. Computational economic modeling of migration By Klabunde, Anna
  12. Factors Affecting Former Residents' Returning to Rural Communities By Cromartie, John; von Reichert, Christiane; Arthun, Ryan

  1. By: Sprietsma, Maresa; Pfeil, Lisa
    Abstract: We investigate the effect of peer group composition on language improvement in language classes for adults. Using unique survey data of migrants participating in an intensive language course in Germany, we find that the age and skill composition of groups affect skill acquisition as assessed by the teacher. Moreover, groups that are more heterogenuous in terms of regions of origin on average obtain improvements in language skills with a higher probability.
    Keywords: language skills,peer effects,migrants
    JEL: I21 I28 J15
    Date: 2015
  2. By: Schaffner, Sandra; Treude, Barbara
    Abstract: Since ethnic clustering is common in Germany, a better understanding of its effects on the integration of immigrants could be important for integration policies, especially in the light of rising immigration and a skilled worker shortage. Yet, both economic theory and empirical research for other countries cannot give a clear-cut answer to whether clustering is benefi cial or detrimental for immigrants' integration. In this paper, the effect of residential clustering on the labour market outcome of first-generation immigrants in Germany is analysed empirically. It, thus, contributes to the literature by extending it to Germany on which hardly any research has been conducted. For the analysis, two measures for labour market integration are used: the employment probability and wage levels. In order to control for the endogeneity of the location decision, a two-step strategy is used, combining a control function and an instrumental variable (IV) approach. The results suggest a negative enclave effect on both employment and wages, that is even larger when sorting is taken into account.
    Abstract: Im Zuge stärkerer Einwanderung nach Deutschland und drohendem Fachkräftemangel ist die Integration von Immigranten von großer Bedeutung. Hier lässt sich häufig beobachten, dass Migranten gleicher oder ähnlicher Herkunft gemeinsam in der gleichen Nachbarschaft wohnen. Sowohl die ökonomische Theorie als auch andere empirische Arbeiten geben keinen eindeutigen Hinweis darauf, ob diese ethnische Segregation förderlich oder hinderlich für die Integration von Migranten ist. Insbesondere für Deutschland existiert bisher kaum Evidenz zu dieser Fragestellung. In diesem Papier wird der Effekt ethnischer Segregation auf den Arbeitsmarkterfolg von Migranten analysiert. Dabei wird der Arbeitsmarkterfolg als Erwerbsbeteiligung zum einen und als Lohnniveau zum anderen definiert. Um für mögliche Endogenität der Wohnortwahl zu kontrollieren, wird eine zweistufige Vorgehensweise aus einer Kontrollfunktion und einem Instrumentvariablenansatz gewählt. Die Ergebnisse zeigen, dass es einen negativen Effekt der ethnischen Segregation sowohl auf die Erwerbsbeteiligung als auch das Lohnniveau gibt. Dieser Effekt ist sogar größer, wenn für die Endogenität der Wohnortwahl kontrolliert wird.
    Keywords: ethnic enclaves,residential clustering,labour market integration,migrants,wage differentials
    JEL: J61 J64 J31 R23
    Date: 2014
  3. By: François Libois; Vincent Somville
    Abstract: Poverty has declined dramatically in Nepal since the end of the conflict. The sharp increase in revenues primarily comes from remittances. From a household’s perspective, choosing the appropriate number of migrants is crucial: they must trade-off the direct cost and loss of local income earners versus the potential remittances. We build a standard game theory model of remittances to emphasize two effects of the number of migrants on the total remittances received that go in opposite directions. On one hand, if each migrants earns more than when he stays home, then there is more to remit, and we expect higher total remittances. On the other hand, when there are more migrants, the incentive to free ride also increases: each of them remits less and the total remittances could decrease. We use the last nationally representative survey to test our theoretical predictions. We find that the total remittances received (per household member) in fact substantially decreases with the number of migrants, in line with the free-riding argument. We use past conflict intensity in the district to predict current number of migrants and clear our estimates of endogeneity biases. We also discuss the plausibility of alternative explanations.
    Keywords: Remittances, migration, fertility, poverty
    Date: 2014
  4. By: Delis, Manthos; Gaganis, Chrysovalantis; Hasan, Iftekhar; Pasiouras, Fotios
    Abstract: We link genetic diversity in the country of origin of firms’ board members with corporate performance via board members’ nationality. We hypothesize that our approach captures deep-rooted differences in cultural, institutional, social, psychological, physiological, and other traits that cannot be captured by other recently measured indices of diversity. Using a panel of firms listed in the North American and U.K. stock markets, we find that adding board directors from countries with different levels of genetic diversity (either higher or lower) increases firm performance. This effect prevails when we control for a number of cultural, institutional, firm-level, and board member characteristics, as well as for the nationality of the board of directors. To identify the relationship, we use as instrumental variables for our diversity indices the migratory distance from East Africa and the level of ultraviolet exposure in the directors’ country of nationality.
    Keywords: Genetic diversity; corporate performance; nationality of board members
    JEL: G0 G00 G30 M21
    Date: 2015–06–01
  5. By: Klaudia Erhardt
    Date: 2015
  6. By: Jacques Véron (INED); Valérie Golaz (INED)
    Abstract: Though environmental migration is an issue of growing importance, it is often difficult to determine whether environmental change is the main factor involved. Climate change is likely to result in more frequent and severe “natural” disasters, but mobility is only one possible response; others involve adapting the exposed territories to new constraints. If mobility is to become a strategy for anticipating and responding to the effects of natural disasters, it is crucial to understand the mechanisms at play when populations move.
    Date: 2015
  7. By: Michael Amior; Alan Manning
    Abstract: Local differences in US employment-population ratios and unemployment rates have persisted over many decades. Using decennial census data from 1950-2010, we investigate the reasons for this. The persistence cannot be explained by permanent differences in amenities, local demographic composition or the propensity of women to work. Population does respond strongly to differences in economic fortunes, although these movements are not large enough to eliminate shocks within a decade. Over the longer run, persistence in local joblessness is largely explained by serial correlation in the demand shocks themselves.
    Keywords: Local labor markets, unemployment, inactivity, internal migration, commuting
    JEL: J61 J64 R23
    Date: 2015–06
  8. By: Semrad, Alexandra
    Abstract: This paper analyses long-term effects of forced WWII migration on educational outcomes. Specifically Sudeten German expellees in post-war Bavaria coming from highly industrialized Sudetenland (Czechoslovakia) had strong preferences for higher secondary schooling, especially in form of a practical, business-related, and general education school. As a result they became actively engaged in the development of post-war middle track education (Realschule, Fachschule). Employing county-level data on student numbers and graduates of secondary education, empirical analysis including ordinary least squares, instrumental variable, and differences-in-differences models reveals that counties housing a higher share of Sudeten Germans after the war are significantly associated with higher educational development some 20 years later. An increase in the share of Sudeten Germans by 1 percentage point increases the share of children (graduates) in middle track education by at least 0.8 (0.1) percentage points, respectively. Calculations suggest that these effects are not mechanically caused by Sudeten Germans and their children demanding education, but are the actual result of educational spillovers to the local population.
    Keywords: Educational spillovers; Forced migration; Post-war Bavaria
    JEL: I29 N34 O15
    Date: 2015–05
  9. By: Gould, Eric D
    Abstract: This paper investigates whether the increasing “residual wage inequality” trend is related to manufacturing decline and the influx of low-skilled immigrants. There is a vast literature arguing that technological change, international trade, and institutional factors have played a significant role in the inequality trend. However, most of the trend is unexplained by observable factors. This paper attempts to “explain” the growth in the unexplained variance of wages by exploiting variation across locations (states or cities) in the United States in the local level of “residual inequality.” The evidence shows that a shrinking manufacturing sector increases inequality. In addition, an influx of low-skilled immigrants increases inequality, but this effect is concentrated in areas with a steeper manufacturing decline. Similar results are found for two alternative measures linked to increasing inequality: the increasing return to education and the decline in the employment rate of non-college men. The overall evidence suggests that the manufacturing and immigration trends have hollowed-out the overall demand for middle-skilled workers in all sectors, while increasing the supply of workers in lower skilled jobs. Both phenomena are producing downward pressure on the relative wages of workers at the low end of the income distribution.
    Keywords: low-skilled immigration; manufacturing decline; residual wage inequality
    JEL: J31
    Date: 2015–06
  10. By: Fassio, Claudio; Montobbio, Fabio; Venturini, Alessandra (University of Turin)
    Abstract: This paper uses the French and the UK Labour Force Surveys and German Microcensus to estimate the effects of the different components of the labour force on innovation at the sectoral level between 1994 and 2005, focusing 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 for the 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 one of the educated natives. Moreover this positive effect seems to be confined to the high tech sectors and among highly educated migrants from other European countries.
    Date: 2015–05
  11. By: Klabunde, Anna
    Abstract: In this paper an agent-based model of endogenously evolving migrant networks is developed to identify the determinants of migration and return decisions. Individuals are connected by links, the strength of which declines over time and distance. Methodologically, this paper combines parameterization using data from the Mexican Migration Project with calibration. It is shown that expected earnings, an idiosyncratic home bias, network ties to other migrants, strength of links to the home country and age have a significant impact on circular migration patterns. The model can reproduce spatial patterns of migration as well as the distribution of number of trips of migrants. It is shown how it can also be used for computational experiments and policy analysis.
    Abstract: In dieser Studie wird ein agentenbasiertes Modell zum Migrationskreislauf mexikanischer Migranten in die USA eingeführt. Es handelt sich um ein vollständig empirisch fundiertes Modell, d.h. alle Parameter basieren auf empirischen Schätzungen. Insbesondere wurden die Koeffizienten der Verhaltensregeln der Individuen mit geläufigen ökonometrischen Methoden geschätzt. Hierbei wurde das Mexican Migration Project (MMP) verwendet, ein großer Haushaltsdatensatz. In einem ersten Schritt wird gezeigt, dass erwartetes Einkommen, eine idiosynkratische Heimatpräferenz und Netzwerkbeziehungen zu anderen Migranten die wichtigsten Determinanten der Migrationsentscheidung von Angehörigen einer Generation mexikanischer Migranten sind. Die Anzahl und Stärke der Beziehungen in das Heimatland beeinflusst hingegen die Rückkehrentscheidung. Es wird zudem gezeigt, dass die Verteilung der Migranten über die Städte der USA hinweg einer Power-Law-Verteilung folgt. Dies wird erklärt durch einen Preferential-Attachment'-Prozess, in dem Migranten häufig die Städte als Zielort wählen, in denen sie Bekannte und Verwandte haben. Die Verteilung der Anzahl der Migrationsbewegungen ist negativ binomialverteilt, was dadurch zu erklären ist, dass es viel wahrscheinlicher ist, dass Migranten nach der ersten Migrationsbewegung eine weitere Migrationsbewegung durchführen, als dass sie das erste Mal migrieren. Der Grund hierfür ist, dass sich die Entscheidung, zum zweiten Mal zu migrieren, stark von der unterscheidet, zum ersten Mal auszuwandern, weil migrationsspezifische Erfahrungen die Entscheidung erleichtern. Das agentenbasierte Modell ist in der Lage, beide Verteilungen und zwei aggregierte Zeitreihen nachzubilden. Daher wird es für geeignet befunden, Politikanalysen durchzuführen. Es wird gezeigt, wie mit Hilfe des Modells der Effekt einer Erhöhung der mexikanischen Löhne und einer Intensivierung der Grenzkontrollen untersucht werden kann.
    Keywords: circular migration,social networks,agent-based computational economics
    JEL: C63 F22 J61
    Date: 2014
  12. By: Cromartie, John; von Reichert, Christiane; Arthun, Ryan
    Abstract: Throughout rural America, especially in remote areas lacking scenic landscapes, hundreds of communities face the difficult challenge of adjusting economically and socially to dwindling populations. High school graduates leave for college, good-paying jobs, the military, or simply to see the world, and only a small number return. However, those who do return often bring spouses and young children back with them, along with education and skills gained elsewhere. This study reports on the factors that influence decisions to move back to rural areas and the impacts that return migrants make on home communities. Interviews at high school reunions show that limited rural employment opportunities are barriers for those considering a move back home. Those who do return find ways to secure employment, but are primarily motivated by family considerations. Return migrants use skills and experiences acquired elsewhere, and their commitment to their places of origin, to start businesses, fill professional positions, and take on leadership roles in ways that uniquely impact rural communities.
    Keywords: migration, return migration, qualitative research, high school reunions, rural America, rural development, life-cycle migration, population change, Community/Rural/Urban Development, Labor and Human Capital,
    Date: 2015–05

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