nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2015‒09‒05
eight papers chosen by
Yuji Tamura
La Trobe University

  1. Economic incentives versus institutional frictions: migration dynamics within Europe By Chakrabarti, Anindya S.; Dutta, Aparna
  2. Migration, gender, and farming systems in Asia: Evidence, data, and knowledge gaps: By Mueller, Valerie; Kovarik, Chiara; Sproule, Kathryn; Quisumbing, Agnes R.
  3. Migration, Careers and the Urban Wage Premium: Does Human Capital Matter? By Korpi, Martin; Clark, William A.V.
  4. International Import Competition and the Decision to Migrate: Evidence from Mexico By Majlesi, Kaveh; Narciso, Gaia
  5. Network Effects, Ethnic Capital and Immigrants' Earnings Assimilation: Evidence from a Spatial, Hausman-Taylor Estimation By Maani, Sholeh A.; Wang, Xingang; Rogers, Alan
  6. Short-term Migration and Intergenerational Persistence of Industry in Rural India By Nandi, Tushar Kanti; Kar, Saibal
  7. Remittance and Migration Prospects for the Twenty-First Century By Frédéric DOCQUIER; Joël MACHADO
  8. Migration, Entrepreneurship and Development: A Critical Review By Naudé, Wim; Siegel, Melissa; Marchand, Katrin

  1. By: Chakrabarti, Anindya S.; Dutta, Aparna
    Abstract: The immobility puzzle in European Union takes the form that the observed level of migration within Europe is substantially less than is expected in an union which allows free labor mobility, indicating that there are possibly institutional barriers inhibiting migration. In order to pin down the missing mass of migrants, we propose a theory of cross-region migration in a multi-region setting with heterogeneity in sectoral compositions, productivity and endowments of productive inputs. Migration arises as the result of adjustment process of workers in response to uneven region and sector-specific shocks in factor productivity. When tested on U.S. which we consider to be a benchmark for institutional homogeneity, this model explains substantial part of variability in both the nominal and the relative levels of state-to-state migration. However, for Europe, the model explains the relative ow network well but predicts a higher nominal ow than is seen in the data illustrating the puzzle. Following the hypothesis that heterogeneity across European countries in institutional factors induce a friction on such labor reallocation process driven by economic incentives, we use dyadic regression to analyze the effects of pair-wise institutional distances which broadly captures various types of socio-cultural and political differences between countries, on the missing mass of migrants. Linguistic differences appear to be an important factor explaining the gap.
  2. By: Mueller, Valerie; Kovarik, Chiara; Sproule, Kathryn; Quisumbing, Agnes R.
    Abstract: This paper reviews the literature on migration in Asia, with specific attention given to how gendered migration may influence future agricultural productivity. The first section examines the current body of evidence on the state of international and internal migration, using large-scale datasets that cover several Asian countries. The second section summarizes the findings of an extensive literature review on gendered determinants of migration, employment, and remittances. The third section lays out the gains and losses of migration and discusses the evidence on possible changes in gender roles owing to migration.
    Keywords: gender, women, agriculture, migration, productivity, wages, income, remittances,
    Date: 2015
  3. By: Korpi, Martin (The Ratio institute); Clark, William A.V. (California Center for Population Research, UCLA)
    Abstract: Using detailed Swedish full population data on regional migrants, this paper addresses the question of whether the urban wage premium, and “thick” labor market matching effects, are found only among the higher educated or across all educational groups, and whether the urban population threshold for these type of effects varies by educational category. Estimating initial wages, average wage level and wage growth 2001-2009, we find similar matching effects for all educational groups in the three largest metropolitan areas, but very weak effects for cities ranked 4th - 6th in the urban hierarchy. Our findings suggest that positive urban matching effects are not limited to those with higher education, but that there are distinct population thresholds for these type of effects, regardless of educational background.
    Keywords: Human capital; urban wage premium; domestic migration; market thickness; mobility; agglomeration economies
    JEL: J31 J61 R10 R12
    Date: 2015–08–27
  4. By: Majlesi, Kaveh (Department of Economics, Lund University); Narciso, Gaia (Department of Economics, Trinity College Dublin)
    Abstract: We analyze the effects of the increase in China’s import competition on Mexican domestic and international migration. We exploit the variation in exposure to competition from China, following its accession to the WTO in 2001, across Mexican municipalities and estimate the effect of international competition on the individual decision to migrate. Controlling for individual and municipality features, we find that individuals living in municipalities more exposed to Chinese import competition are more likely to migrate to other municipalities within Mexico, while a negative effect is found on the decision to migrate to the US. In particular, we find that Chinese import competition reduces migrants’ negative self-selection: the rising international competition lowers the likelihood of low-educated, low-income people to migrate to the US, by making them more financially constrained.
    Keywords: Import competition; Migration; Trade; Mexico; WTO; China
    JEL: F14 F16 F22 O15 R12 R23
    Date: 2015–08–17
  5. By: Maani, Sholeh A. (University of Auckland); Wang, Xingang (University of Auckland); Rogers, Alan (University of Auckland)
    Abstract: Do ethnic enclaves assist or hinder immigrants in their economic integration? In this paper we examine the effect of 'ethnic capital' (e.g. ethnic network and ethnic concentration) on immigrants' earnings assimilation. We adopt a "spatial autoregressive network approach" to construct a dynamic network variable from micro-panel-data to capture the effects of spatial-ethnic-specific resource networks for immigrants. The spatial lag structure is combined with a Hausman-Taylor (1981) panel data model, which allows for some endogeneity. We examine the effects of ethnic capital and human capital using an eight-year Australian panel data set (HILDA). Results show that immigrants' labor market integration is significantly affected by the local concentration and resources of their ethnic group.
    Keywords: assimilation, ethnic capital, ethnic network, ethnic concentration, spatial autoregressive lag model, panel data
    JEL: J30 J31 Z13 Z18
    Date: 2015–08
  6. By: Nandi, Tushar Kanti (Centre for Studies in Social Sciences, Calcutta); Kar, Saibal (Centre for Studies in Social Sciences, Calcutta)
    Abstract: One of the well-known barriers to development is persistence of disadvantage among communities. The lack of occupational and therefore upward social mobility continues to restrain households from achieving socially desirable outcomes. This paper studies the effect of short-term internal migration experience on the intergenerational persistence of industry upon a migrant's return to native place. We develop an occupational choice model of a return migrant to study the relationship between the migrant's savings, skill or any other productive asset accumulation during migration and the decision to work upon return, in the industry where his/her father is employed. Using data from a nationally representative sample survey, we find that short-term migration by males reduces the probability of intergenerational persistence by 20% in rural India. Migration to urban areas, work experience in a different industry and higher frequency of migration reduce the return migrant's chance of being employed in the industry where his father is employed. The results suggest that skill formation during migration can play a key role in reducing labour market inequality by weakening the strength of intergenerational transmission of disadvantages.
    Keywords: migration, occupation, industry, household survey, rural India
    JEL: J24 O12 O18
    Date: 2015–08
  7. By: Frédéric DOCQUIER (Université Catholique de Louvain); Joël MACHADO (FERDI)
    Abstract: Remittances have been increasingly perceived as offering a vital lifeline for millions of poor households in developing countries. Their future will be affected by the evolution of emigration rates and cross-country disparities in income. In this paper, we provide integrated projections of income, population, migration stocks and remittances for the 21st century under alternative technological and policy scenarios. Our quantitative analysis reveals that remittances will be a sustainable source of funding for low-income countries. Due to rising income disparities and the take-off of emerging countries, their share in GDP is likely to increase in the future, notwithstanding the fact that population growth will be greater in low-income countries. The average remittances-to-GDP ratio will be constant in our worst-case scenario, multiplied by 3 in our baseline, and by 10 in our best-case scenario. The latter assumes that the BRIC’s catch up with high-income countries and open their borders to immigration, and a constant propensity to remit.
    JEL: F22 F24 J11 J61 O15
    Date: 2015–08
  8. By: Naudé, Wim (Maastricht University); Siegel, Melissa (Maastricht University); Marchand, Katrin (Maastricht University)
    Abstract: We provide an assessment of the state of scholarly and policy debates on migrant entrepreneurs in development. They are often described as super-entrepreneurs who contribute to development through (i) being more entrepreneurial than natives; (ii) providing remittances that fund start-ups in their countries of origin and (iii) returning entrepreneurial skills to their home countries when they re-migrate. We evaluate these three views and conclude that the empirical evidence to support the notion of the migrant as a super-entrepreneur is weak. We further argue that the evidence is less ambiguous on the general development contribution of migration over and above its contribution through entrepreneurship. The implication is that removal of discriminatory barriers against migrants and against migrant entrepreneurs in labour, consumer and financial markets will promote development in both sending and receiving countries, not least through reducing the shares of migrants that are reluctant entrepreneurs.
    Keywords: migration, entrepreneurship, development, remittances
    JEL: J60 L26 O15 F22
    Date: 2015–08

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