nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2015‒08‒25
seven papers chosen by
Yuji Tamura
La Trobe University

  1. Migration and families left behind By Sylvie Démurger
  2. The Native-Born Occupational Skill Response to Immigration within Education and Experience Cells By Gu, Emily; Sparber, Chad
  3. Migration externalities in Chinese cities By Pierre-Philippe Combes; Sylvie Démurger; Shi Li
  4. New Evidence on Mobility and Wages of the Young and the Old By Hansen, Jörgen; Lkhagvasuren, Damba
  5. Sectoral Imbalance in Two-Sector Economy with Mobility Constraint and Firm Migration By Li, Xi Hao; Gallegati, Mauro
  6. Trade, Factor Mobility and the Extent of Economic Integration: Theory and Evidence By Irena Mikolajun; Jean-Marie Viaene
  7. Immigration Policy and Macroeconomic Performance in France By Ekrame Boubtane; Dramane Coulibaly; Hippolyte D'Albis

  1. By: Sylvie Démurger (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - CNRS)
    Abstract: The effect of a family member’s migration on those who stay behind can be either positive or negative, depending on individual circumstances. Although remittances are a potentially important means of easing family budget constraints and alleviating poverty, the most vulnerable populations may be hurt by a family member’s migration. Policymakers need to consider the specific circumstances behind the migration and of the family members in the home country. Support systems for these families may need to be bolstered to help them cope with any detrimental impacts of migration, especially its effect on education and human capital accumulation
    Date: 2015
  2. By: Gu, Emily (Department of Economics, Colgate University); Sparber, Chad (Department of Economics, Colgate University)
    Abstract: Studies estimating the consequences of immigration on wages paid to native-born workers often uncover small to nonexistent effects when using cross city or state variation (the “spatial approachâ€) but large deleterious effects when using variation across education-by-experience cells (the “national approachâ€). One mechanism of labor market adjustment emphasized in the spatial approach is that native-born workers respond to immigration by specializing in occupations demanding skills in which they have a comparative advantage, thereby helping to protect themselves from labor market competition and wage losses. This paper examines whether the national approach also identifies this skill response. We find evidence that such a response does occur, which reduced the magnitude of within-cell wage effects by more than 20%.
    Keywords: Immigration, Occupational Skills
    JEL: F22 J24 J61 J31
    Date: 2015–07–31
  3. By: Pierre-Philippe Combes (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université); Sylvie Démurger (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - CNRS); Shi Li (Beijing Normal University / Beijing)
    Abstract: We analyse the impact of internal migration in China on natives' labour market outcomes. We find evidence of a large positive correlation of the city share of migrants with natives' wages. Using different sets of control variables and instruments suggests that the effect is causal. The large total migrant impact (+10% when one moves from the first to the third quartile of the migrant variable distribution) arises from gains due to complementarity with natives in the production function (+6.4%), and from gains due to agglomeration economies (+3.3%). Finally, we find some evidence of a stronger effect for skilled natives than for unskilled, as expected from theory. Overall, our findings support large nominal wage gains that can be expected from further migration and urbanisation in China.
    Date: 2015–03–10
  4. By: Hansen, Jörgen (Concordia University); Lkhagvasuren, Damba (Concordia University)
    Abstract: We present new evidence on the wage and mobility of young and old workers, which is difficult to explain using standard human capital theory. Instead, we propose a simple dynamic extension of the Roy model, where worker migration and wages are jointly determined at the individual level. According to this model, a higher moving cost among older workers is the main factor driving the lower mobility among this group. Because of the higher moving costs, older workers require a higher wage increase to move across regions than younger workers, a pattern that is consistent with individual-level U.S. data. We also find an interesting dynamic effect suggesting that, given a persistent labor income shock, a higher future moving cost makes workers more mobile today.
    Keywords: geographic mobility, labor mobility by age, labor income shock, moving cost, multi-sector model
    JEL: E24 J31 J61 R23
    Date: 2015–08
  5. By: Li, Xi Hao; Gallegati, Mauro
    Abstract: We consider a two-sector economy with a low-technology agriculture sector (sector A) and a high-technology manufacture sector (sector M). We investigate the scenario with mobility constraint that worker in sector A, when unemployed, has to afford the migration cost in order to move to sector M. By developing an agent-based two-sector model with computational simulation, we show that productivity growth localized at agriculture sector with mobility constraint leads to a decrease of agricultural market price, sectoral imbalance that workers are trapped unemployed in agriculture sector, and the overall economy experiencing economic downturn. In particular, localized productivity growth leads to both sectors bearing with high unemployment, low level of aggregate output, and low level of aggregate real wage income. Regarding remedy for the economic downturn under this scenario, we investigate the policy of firm migration such that agriculture firms can migrate to manufacture sector together with their employed workers. Agent-based study shows that this policy restores employment in both sectors, with a side effect of an increase of agricultural market price.
    Keywords: two-sector model, agent-based economic modeling, productivity growth, sectoral imbalance, economic downturn, mobility constraint
    JEL: C63 E17 E24 L5
    Date: 2015–07
  6. By: Irena Mikolajun (Erasmus University Rotterdam, the Netherlands); Jean-Marie Viaene (Erasmus University Rotterdam, the Netherlands)
    Abstract: The Middle East was once seen as a medieval great globalized force. Nowadays it shows one of the lowest intra-regional trade in the world and therefore it is claimed that the region is poorly integrated. Yet, with the steady flow of workers across national borders of the Middle East is this conjecture correct? To answer this question the paper develops an integration benchmark which consists of the steady state production equilibrium characterized by free trade and perfect factor mobility. We apply metrics to measure the distance between this benchmark and the data and compare three different regions of the world (EU, Latin America and Middle East). We find that, despite large differences in trade patterns, measures of economic integration in 2009 are remarkably close across regions. For example, we calculate that economic integration in the Middle East is just 2.4% below that of the European Union.
    Keywords: Economic integration; Euclidean distance; factor shares; international migration
    JEL: E13 F4 F15 F21 O11 O53 O54
    Date: 2015–08–11
  7. By: Ekrame Boubtane (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I); Dramane Coulibaly (EconomiX - EconomiX - UP10 - Université Paris 10, Paris Ouest Nanterre La Défense); Hippolyte D'Albis (CES - Centre d'économie de la Sorbonne - Université Paris 1 Panthéon-Sorbonne)
    Abstract: This paper quantitatively assesses the interaction between permanent immigration into France and France's macroeconomic performance as seen through its GDP per capita and its unemployment rate. It takes advantage of a new database where immigration is measured by the flow of newly- issued long-term residence permits, categorized by both the nationality of the immigrant and the reason of permit issuance. Using a VAR model estimation of monthly data over the period 1994-2008, we find that immigration flow significantly responds to France's macroeconomic performance: positively to the country's GDP per capita and negatively to its unemployment rate. At the same time, we find that immigration itself increases France's GDP per capita, particularly in the case of family immigration. This family immigration also reduces the country's unemployment rate, especially when the families come from developing countries.
    Date: 2015–03–25

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