nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2016‒04‒30
twelve papers chosen by
Yuji Tamura
La Trobe University

  1. Social status and public expectations: Self-selection of high-skilled migrants By Lumpe, Christian; Lumpe, Claudia; Meckl, Jürgen
  2. Self-Selection of Emigrants: Theory and Evidence on Stochastic Dominance in Observable and Unobservable Characteristics By Ilpo Kauppinen; Borjas; J. George; Poutvaara; Panu
  3. Family Decision of Investment in Human Capital and Migration in a Model of Spatial Agglomeration By Hiroki Kondo
  4. “Graduate migration in Spain: the impact of the great recession on a low mobility country” By Raul Ramos; Vicente Royuela
  5. Migration in Ireland: Challenges, opportunities and policies By Alberto González Pandiella
  6. The Almeria Exodus. Understanding the turn of the century Spanish migration. By Mari Carmen Pérez Artés
  7. Illegal migration and consumption behavior of immigrant households By Dustmann, Christian; Fasani, Francesco; Speciale, Biagio
  8. Social Capital, Entrepreneurship and Living Standards: Differences between Immigrants and the Native Born By Roskruge, Matthew; Poot, Jacques; King, Laura
  9. Public housing magnets: public housing supply and immigrants’ location choices By Gregory Verdugo
  10. The patenting performance of second-generation immigrants in Sweden: differentiated by parents’ region of origin By Zheng, Yannu
  11. Internal Migration, Structural Change, and Economic Growth By Saracoglu, Durdane Sirin; Roe, Terry L.
  12. Temporary Migration and Endogenous Risk Sharing in Village India By Melanie Morten

  1. By: Lumpe, Christian; Lumpe, Claudia; Meckl, Jürgen
    Abstract: We analyze public expectations about migrants' provision of work effort as a driving force in the self-selection process of high-skilled migrants. We adopt and extend Piketty's (1998) theoretical framework of social status and work out how country-specific public expectations affect the migrants' choice about their country of destination. As a result, we relate Germany's attested low attractiveness for high-skilled immigrants to its society's attitudes towards immigrants. We develop measures to increase Germany's attractiveness in the competition about talents.
    Abstract: Wir analysieren Erwartungen der Öffentlichkeit im Einwanderungsland an den Arbeitseinsatz von Immigranten als treibende Kraft für die Selbstselektion hochqualifizierter Immigranten. Dazu übernehmen und erweitern wir das theoretische Modell zum sozialen Status von Piketty (1998) und zeigen, dass länderspezifische öffentliche Erwartungen die Entscheidung von Immigranten, in welches Land sie migrieren, beeinflussen. Im Ergebnis verknüpfen wir Deutschlands attestierte geringe Attraktivität für hochqualifizierte Immigranten mit der Einstellung der Öffentlichkeit gegenüber Immigranten. Wir zeigen Maßnahmen auf, anhand derer Deutschland seine Attraktivität im internationalen Wettbewerb um Talente steigern kann.
    Keywords: immigration,social status
    JEL: F22
    Date: 2016
  2. By: Ilpo Kauppinen; Borjas; J. George; Poutvaara; Panu
    Abstract: We show that the Roy model has more precise predictions about the self-selection of migrants than previously realized. The same conditions that have been shown to result in positive or negative selection in terms of expected earnings also imply a stochastic dominance relationship between the earnings distributions of migrants and non-migrants. We use the Danish full population administrative data to test the predictions. We find strong evidence of positive self-selection of emigrants in terms of pre-emigration earnings: the income distribution for the migrants almost stochastically dominates the distribution for the non-migrants. This result is not driven by immigration policies in destination countries. Decomposing the self-selection in total earnings into self-selection in observable characteristics and self-selection in unobservable characteristics reveals that unobserved abilities play the dominant role.
    Keywords: international migration, Roy model, self-selection
    JEL: J61 F22
    Date: 2016–04–19
  3. By: Hiroki Kondo (Department of Economics, Sophia University)
    Abstract: This paper analyzes human capital investment decision and location choice, focusing on the intergenerational interactions within a family in an economy where geographic concentrations of high technology industries and high-level service sectors are proceeding. For highly educated young adults searching for job opportunities is much more frequently accompanied by long distance migrations, sometimes beyond the national border. That discourages parents to invest in human capital for their children. Public human capital investment decision is also discussed.
    Keywords: Human Capital; Spatial Agglomeration; Intergenerational Interactions; Migration.
    JEL: R12 R13 R23 I25 I28
    Date: 2016–03
  4. By: Raul Ramos (AQR Research Group-IREA. University of Barcelona); Vicente Royuela (AQR Research Group-IREA. University of Barcelona)
    Abstract: This work studies the impact that the Great Recession has had on the migration of graduates in Spain, a country with low international mobility for graduates but where push factors associated to the crisis have probably changed their mobility patterns. Our empirical analysis first adopts a macro approach by estimating a gravity model taking advantage of the recent publication of the IAB brain-drain data. This dataset covers information for 20 OECD destination countries by gender, country of origin and educational level, for the period 1980-2010. Next, we use individual data from different surveys addressed to Catalan graduates and recent Ph.D. holders carried out by AQU in order to provide new evidence on the drivers and impacts of changing trends in their migration behaviour. Our hypothesis is that internal mobility has been replaced by international migration for recent graduates for two reasons: first, due to the generalized increased in unemployment across the whole country (push factor), and second, due to the better skill and educational matches in other European labour markets (pull factor) than in the Spanish one, where the incidence of overeducation is among the highest of OECD countries.
    Keywords: Graduate migration; overeducation; international migration; great recession. JEL classification: F22; J61; R23; I25
    Date: 2016–04
  5. By: Alberto González Pandiella
    Abstract: The Irish labour market is exceptionally open to international migration flows, thus making labour supply highly responsive to changes in cyclical conditions. Immigration provides the skills that the Irish economy needs. The crisis triggered a sharp reversal in migration flows, with immigration suddenly halting and emigration increasing. A large proportion of emigration is highly qualified, as is a high proportion of immigration. This pattern of “brain exchange” can contribute to reducing skills mismatches, but also raises the challenge of remaining attractive for skilled workers. This paper examines how the crisis has affected migration, how related policies have evolved and proposes avenues to spread the benefits of migration beyond the scope of multinational enterprises, in particular to Irish SMEs. The proportion of Irish-born population living abroad is very large and the paper also analyses what role return migration could play, what policies are in place to maintain links with emigrant’s communities abroad and how they can be strengthened. Ireland has recently experienced, for the first time in its history, large-scale immigration. As a result, it currently hosts a large and very heterogeneous immigrant community, with diverging challenges and needs. Getting integration policies right is therefore a complex, but crucial task. The paper identifies what are the key challenges in this area and proposes some avenues to foster the labour market integration of immigrants. Ireland is also starting to experience challenges associated with the integration of second generation immigrants. To respond to those challenges, the paper recommends early action in education and social domains. Migration en Irlande : Défis, opportunités et politiques Le marché du travail irlandais est exceptionnellement ouvert au flux migratoires internationaux, rendant ainsi l'offre de main-d'oeuvre hautement sensible aux changements de conditions cycliques. Immigration fournit les compétences que l'économie irlandaise a besoin. La crise a déclenché une forte inversion des flux migratoires. L'immigration a soudainement arrêté et l'émigration a augmentée. Une grande partie de l'émigration est hautement qualifié. Une forte proportion de l'immigration est aussi hautement qualifiée. Ce modèle de «l'échange des cerveaux» peut contribuer à réduire l'inadéquation des compétences, mais soulève aussi le défi de rester attractif pour les travailleurs qualifiés. Ce document examine comment la crise a affecté la migration, comment les politiques connexes ont évolué et propose des pistes d'étendre les avantages de la migration au-delà de la portée des entreprises multinationales, en particulier aux PME irlandaises. La proportion de la population d'origine irlandaise vivant à l'étranger est très grande et le document analyse aussi le rôle que la migration de retour pourrait jouer, que politiques sont en place pour maintenir des liens avec les communautés à l'étranger et comment ils peuvent être renforcés. L'Irlande a connu récemment, pour la première fois de son histoire, l'immigration à grande échelle. En conséquence, il accueille actuellement une communauté d'immigrants vaste et très hétérogène, avec des défis et des besoins divergents. Obtenir les politiques d'intégration est donc juste une tâche complexe, mais crucial. Le document identifie quels sont les principaux défis dans ce domaine et propose quelques pistes pour favoriser l'intégration des immigrants au marché du travail. L'Irlande est également commence à éprouver des difficultés liées à l'intégration des immigrants de deuxième génération. Pour répondre à ces défis, le document recommande une action précoce dans l'éducation et les domaines sociaux.
    Keywords: migration, immigration, labour market, integration, return migration, migration de retour, marché du travail, migration, immigration, intégration
    JEL: E24 F22 J21 J24 J61
    Date: 2016–04–19
  6. By: Mari Carmen Pérez Artés (Universidad de Almería)
    Abstract: From 1888 until 1920 Almería threw out 22% of its population. It becomes the province with the largest gross rate of emigration of Spain. The paper analyzes this phenomenon with the objective to contribute to the literature on external and internal migrations in Spain. The source used are population censuses and 1888’s corrections census of Almeria, source not studied until today. We have obtained a database of 5,297 migrants. The source allows us to analyze the profile of migrant and family groups, social, economic, political and physical factors and the role of networks migration. We present a new empirical evidence, causes and characteristics of migration in late 19th century in Spain.
    Keywords: Migrations, 19th Century, Almería.
    JEL: N0 N3 N5 N7
    Date: 2016–03
  7. By: Dustmann, Christian; Fasani, Francesco; Speciale, Biagio
    Abstract: We analyze the effect of immigrants' legal status on their consumption behavior using unique survey data that samples both documented and undocumented immigrants. To address the problem of sorting into legal status, we propose two alternative identification strategies as exogenous source of variation for current legal status: First, transitory income shocks in the home country, measured as rainfall shocks at the time of emigration. Second, amnesty quotas that grant legal residence status to undocumented immigrants. Both sources of variation create a strong first stage, and - although very different in nature- lead to similar estimates of the effects of illegal status on consumption, with undocumented immigrants consuming about 40% less than documented immigrants, conditional on background characteristics. Roughly one quarter of this decrease is explained by undocumented immigrants having lower incomes than documented immigrants. Our findings imply that legalization programs may have a potentially important effect on immigrants' consumption behavior, with consequences for both the source and host countries.
    Keywords: consumption behavior; legal status; weather shocks
    JEL: D12 F22 K42
    Date: 2016–03
  8. By: Roskruge, Matthew (University of Waikato); Poot, Jacques (University of Waikato); King, Laura (University of Waikato)
    Abstract: Both migrant entrepreneurship and social capital are topics which have attracted a great deal of attention. However, relatively little econometric analysis has been done on their interrelationship. In this paper we first consider the relationship between social capital and the prevalence of entrepreneurship. We also investigate the relationship between social capital and the living standards of entrepreneurs. In both cases we ask whether these interrelationships differ between migrants and comparable native‐born people. We utilize unit record data from the pooled 2008, 2010 and 2012 New Zealand General Social Surveys (NZGSS). The combined sample consists of 15,541 individuals who are in the labour force. Entrepreneurs are defined as those in the sample who obtained income from self‐employment or from owning a business. Social capital is proxied by responses to questions on social networks, volunteering and sense of community. The economic standard of living is measured by either personal income or by an Economic Living Standards Index (ELSI) score developed by the New Zealand Ministry of Social Development. We find significant differences between migrants and the native born in terms of the attributes of social capital that are correlated with entrepreneurship, but volunteering matters equally for both groups. The positive association between social capital attributes and ELSI scores is similar between migrant and natives. Social capital contributes little to explaining incomes of either group.
    Keywords: migration, social capital, entrepreneurship, income, standard of living
    JEL: F22 J15 L26 Z13
    Date: 2016–04
  9. By: Gregory Verdugo (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, OFCE - OFCE - Sciences Po)
    Abstract: This paper investigates how a reform allowing immigrants with children in France access to public housing during the 1970s influenced their initial location choices across local labour markets. We find that cities with higher public housing supplies have a large 'magnetic effect' on the location choice. The estimated effect is substantial and quantitatively similar to the effect of the size of the ethnic group in the urban area. In cities with higher public housing supply, these immigrants tend to benefit from better housing conditions, but non-European immigrants are also more likely to be unemployed.
    Keywords: Public housing,Social housing,Logement social,Immigration
    Date: 2016
  10. By: Zheng, Yannu (CIRCLE, Lund University)
    Abstract: Children of immigrants inherit human capital attainment from their parents that impact on their innovative performance. Some of this stem from their migrant parents’ positive and negative selection traits, part from their physical or cognitive proximity of country of origin to the host society. In this paper, I examine how second-generation immigrants (with at least one foreign-born parent), taking into consideration their parents’ region of origin, perform in inventive activity compared with native Swedes (with two native-born parents) and how this is related to their parents’ background. The study is based on a new Swedish database of inventors, which matched with the entire population between 1985 and 2007. The results show that, in terms of probability of becoming an inventor and number of forward citations to their patents, second-generation immigrants with non-Nordic European backgrounds perform better than native Swedes. Their better performance is related to the positive selection of their foreign-born parents and a certain distance of proximity to Sweden. The study indicates that there is a trade-off effect between the selection and proximity of foreign-born parents on second-generation immigrants’ patenting performance, but that differs between groups. For second-generation immigrants with other Nordic backgrounds, their less well performance is mainly attributed to their lower education level, which is further related to their less positively selected parents. However, for second-generation immigrants with one native-born parent and one parent from another non-European country, their large distance of proximity to Sweden seems to impede their performance.
    Keywords: Native Swedes; Foreign-born; Innovation; Human capital; Selection
    JEL: J15 J24 N30 O31
    Date: 2016–04–08
  11. By: Saracoglu, Durdane Sirin; Roe, Terry L.
    Abstract: Structural change or the change in the sectoral composition of output is a common component in the growth process in developing economies. Not recognized in previous models of this process is the households' choice of urban - rural residency which not only alters the demand for regionally specific goods (e.g., housing, education, health), and hence the cost of living, but also the stock of rural - urban labor and the rate of growth and structural change. We investigate the relationship between GDP growth, regional imbalances, and rural-urban migration using a neoclassical multi-region-sector growth model. The household decision for migration is dependent on the cost-of living differentials implied by the relative changes in regional home goods prices across regions as capital deepening occurs and the capital stock within each region evolves. Results show that allowing for residency choice provides a much richer explanation of the forces of structural change and growth.
    Keywords: Rural-urban migration, structural transformation, growth, residency choice, multi-sector modeling, general equilibrium, Community/Rural/Urban Development, Public Economics, O41, R13, R23, C61,
    Date: 2015
  12. By: Melanie Morten
    Abstract: When people can self-insure via migration, they may have less need for informal risk sharing. At the same time, informal insurance may reduce the need to migrate. To understand the joint determination of migration and risk sharing I study a dynamic model of risk sharing with limited commitment frictions and endogenous temporary migration. First, I characterize the model. I demonstrate theoretically how migration may decrease risk sharing. I decompose the welfare effect of migration into the change in income and the change in the endogenous structure of insurance. I then show how risk sharing alters the returns to migration. Second, I structurally estimate the model using the new (2001-2004) ICRISAT panel from rural India. The estimation yields: (1) improving access to risk sharing reduces migration by 21 percentage points; (2) reducing the cost of migration reduces risk sharing by 8 percentage points; (3) contrasting endogenous to exogenous risk sharing, the consumption-equivalent gain from reducing migration costs is 18.9 percentage points lower. Third, I introduce a rural employment scheme. The policy reduces migration and decreases risk sharing. The welfare gain of the policy is 55-70% lower after household risk sharing and migration responses are considered
    JEL: D12 D52 D91 O12 R23
    Date: 2016–04

This nep-mig issue is ©2016 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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