nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2016‒07‒16
twelve papers chosen by
Yuji Tamura
La Trobe University

  1. On the global determinants of visiting home By Faruk, Balli; Syed Abul, Basher; Rosmy, Jean Louis; Ahmed Saber, Mahmud
  2. Home sweet home? Macroeconomic conditions in home countries and the well-being of migrants. By Akay, Alpaslan; Bargain, Olivier; Zimmermann, Klaus F.
  3. Labour Mobility and Labour Market Adjustment in the EU By Alfonso Arpaia; Aron Kiss; Balazs Palvolgyi; Alessandro Turrini
  4. Aging, trade, and migration By Chisik,Richard Asher; Onder,Harun; Qirjo,Dhimitri
  5. The impact of migration on tourism demand: evidence from Japan By Etzo, Ivan
  6. Cultural Assimilation during the Age of Mass Migration By Ran Abramitzky; Leah Platt Boustan; Katherine Eriksson
  7. 'Cultural Persistence' of Health Capital: Evidence from European Migrants By Costa-Font, J.; Sato, A.
  8. Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success By Michele Battisti; Giovanni Peri; Agnese Romiti
  9. Immigrant Entrepreneurship By Sari Pekkala Kerr; William R. Kerr
  10. Illegal Migration and Consumption Behavior of Immigrant Households By Dustmann, Christian; Fasani, Francesco; Speciale, Biagio
  11. The Elasticity of the Migrant Labor Supply: Evidence from Temporary Filipino Migrants By Bertoli, Simone; Fernández-Huertas Moraga, Jesús; Keita, Sekou
  12. The role of conflict for optimal climate and immigration policy By Prieur, Fabien; Schumacher, Ingmar

  1. By: Faruk, Balli; Syed Abul, Basher; Rosmy, Jean Louis; Ahmed Saber, Mahmud
    Abstract: In this paper, we examine possible macro-level determinants underlying the number of trips emigrants make back home by exploiting a panel of data comprising 25 countries over the period 1995-2010. To guide the empirical work, we first construct a simple model of the decision by emigrants to visit their home country. The model predicts, among other things, that the effects of distance on the frequency of visiting home are negative but the impact of the host country's wage on the decision to visit home is ambiguous: it depends on the legal status of the emigrants in the host country. Our empirical results based on a pooled estimator support these predictions. First, the number of trips back home is inversely related to distance but positively related to income and institutional quality. Second, emigrants living in Africa and North America are less likely to visit home, whereas emigrants living in the Arabian Gulf countries visit home more often. The results from cross-sectional estimations provide very similar results, indicating that our results are robust to alternative estimation approaches.
    Keywords: International Migration; Geographic Labor Mobility; Tourism; Panel Data.
    JEL: C23 F22 J61 L83
    Date: 2016–06–30
  2. By: Akay, Alpaslan (UNU-MERIT, Maastricht University, and University of Gothenburg); Bargain, Olivier (Aix-Marseille University); Zimmermann, Klaus F. (UNU-MERIT, Maastricht University, and Harvard University)
    Abstract: This paper examines whether the subjective well-being of migrants is responsive to fluctuations in macroeconomic conditions in their country of origin. Using the German Socio-Economic Panel for the years 1984 to 2009 and macroeconomic variables for 24 countries of origin, we exploit country-year variation for identification of the effect and panel data to control for migrants' observed and unobserved characteristics. We find strong evidence that migrants' well-being responds negatively to an increase in the GDP of their home country. That is, migrants seem to regard home countries as natural comparators, which grounds the idea of relative deprivation underlying the decision to migrate. The effect declines with years-since-migration and with the degree of assimilation in Germany.
    Keywords: Migrants, well-being, GDP, unemployment, relative concerns/deprivation
    JEL: C90 D63 F22 O15
    Date: 2016–06–28
  3. By: Alfonso Arpaia (European Commission); Aron Kiss (European Commission); Balazs Palvolgyi (European Commission); Alessandro Turrini (European Commission, IZA and Centro Studi Luca d'Agliano)
    Abstract: This paper assesses macroeconomic determinants of labour mobility and its role in the adjustment to asymmetric shocks. First, the paper develops stylised facts of mobility at the national and sub-national levels in the EU. Then, it explores the macroeconomic determinants of bilateral migration flows. Econometric evidence suggests that labour mobility increases significantly when a country joins the EU. While euro area membership seems not to be associated with an overall rise in the magnitude of mobility flows, workers do appear more ready to move from countries where unemployment is high to those where it is lower. Thirdly, the paper looks at mobility as a channel of economic adjustment by means of a VAR analysis in the vein of Blanchard and Katz (1992). Results indicate that mobility absorbs about a quarter of an asymmetric shock within 1 year. Movements in response to shocks have almost doubled since the introduction of the euro. Real wages have also become more responsive to asymmetric shocks during the same period.
    Keywords: Labour mobility; geographic mobility; migration; gravity; adjustment; asymmetric shocks; optimal currency areas; European Union
    JEL: J61 J64
    Date: 2016–06–10
  4. By: Chisik,Richard Asher; Onder,Harun; Qirjo,Dhimitri
    Abstract: This study considers the role of demand-driven changes arising from population aging and how they affect the pattern of international trade as well as trade and immigration policy. An aging society can see a welfare-reducing reduction in its share of manufacturing output and this reduction is magnified by a decrease in trade costs (an increase in globalization). Immigration can ameliorate this outcome if it is directed toward younger immigrants. A unilateral tariff increase can also reduce firm delocation from an aging country, however, a reciprocated tariff increase will unambiguously harm the country with the older average population.
    Keywords: Debt Markets,Economic Theory&Research,Emerging Markets,Markets and Market Access,Population Policies
    Date: 2016–06–30
  5. By: Etzo, Ivan
    Abstract: This paper investigates the impact of migration on both inbound and outbound Japanese tourism flows during the period 2000-2013. The results reveal that the stock of immigrants in Japan represents an important determinant of inbound tourism flows. The effect remains positive and statistically significant after disaggregating the flows by purpose of visit, though the impact is higher for “holiday” than for “business” arrivals. The number of Japanese residing abroad does not affect the inbound tourist arrivals. On the contrary, they exert a noticeable effect on outbound tourism flows, whilst immigrants in Japan seem not to have a significant effect.
    Keywords: outbound tourism, inbound tourism, migration, Japan
    JEL: F22 L83
    Date: 2016–06
  6. By: Ran Abramitzky; Leah Platt Boustan; Katherine Eriksson
    Abstract: Using two million census records, we document cultural assimilation during the Age of Mass Migration, a formative period in US history. Immigrants chose less foreign names for children as they spent more time in the US, eventually closing half of the gap with natives. Many immigrants also intermarried and learned English. Name-based assimilation was similar by literacy status, and faster for immigrants who were more culturally distant from natives. Cultural assimilation affected the next generation. Within households, brothers with more foreign names completed fewer years of schooling, faced higher unemployment, earned less and were more likely to marry foreign-born spouses.
    JEL: J15 N32
    Date: 2016–07
  7. By: Costa-Font, J.; Sato, A.
    Abstract: Culture is an under-studied determinant of health production and seldom measured. This paper empirically examines the persistence and association of health capital assessments of first and second-generation migrants with that of their ancestral countries. We draw on European data from 30 countries, including over 90 countries of birth and control for timing of migration, selective migration and other controls including citizenship and cultural proxies. Our results show robust evidence of cultural persistence of health assessments. Culture persists, rather than fades, and further, appears to strengthen over generations. We estimate a one standard deviation increase in ancestral health assessment increases first generation migrant’s health assessments by an average of 16%, and that of second generation migrants between 11% and 25%. Estimates are heterogeneous by gender (larger for males) and lineage (larger for paternal lineage).
    Keywords: assimilation; health; health assessments; cultural persistence; first generation migrant; second generation migrant;
    JEL: I18 H23 Z13
    Date: 2016–06
  8. By: Michele Battisti; Giovanni Peri; Agnese Romiti
    Abstract: This paper investigates how the size of co-ethnic networks at arrival affected the economic success of immigrants in Germany. Applying panel analysis with a large set of fixed effects and controls, we isolate the association between initial network size and long-run immigrant outcomes. Focusing on refugees – assigned to an initial location independently of their choice – allows a causal interpretation of the estimated coefficient. We find that immigrants initially located in places with larger co-ethnic networks are more likely to be employed at first, but have a lower probability of investing in human capital. In the long run they are more likely to be mis-matched in their job and to earn a lower wage.
    JEL: J24 J61 R23
    Date: 2016–07
  9. By: Sari Pekkala Kerr; William R. Kerr
    Abstract: We examine immigrant entrepreneurship and the survival and growth of immigrant-founded businesses over time relative to native-founded companies. Our work quantifies immigrant contributions to new firm creation in a wide variety of fields and using multiple definitions. While significant research effort has gone into understanding the economic impact of immigration into the United States, comprehensive data for quantifying immigrant entrepreneurship are difficult to assemble. We combine several restricted-access U.S. Census Bureau data sets to create a unique longitudinal data platform that covers 1992-2008 and many states. We describe differences in the types of businesses initially formed by immigrants and their medium-term growth patterns. We also consider the relationship of these outcomes to the immigrants' age at arrival to the United States.
    JEL: F22 J15 J44 J61 L26 M13 O31 O32 O33
    Date: 2016–07
  10. By: Dustmann, Christian (University College London); Fasani, Francesco (Queen Mary, University of London); Speciale, Biagio (Université Paris 1 Panthéon-Sorbonne)
    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, weather shocks, legal status
    JEL: F22 D12 K42
    Date: 2016–06
  11. By: Bertoli, Simone (CERDI, University of Auvergne); Fernández-Huertas Moraga, Jesús (Universidad Carlos III de Madrid); Keita, Sekou (CERDI, University of Auvergne)
    Abstract: The effect of immigration on host and origin countries is mediated by the way migrants take their labor supply decisions. We propose a simple way of integrating the traditional random utility maximization model used to analyze location decisions with a classical labor demand function at destination. Our setup allows us to estimate a general upper bound on the elasticity of the migrant labor supply that we take to the data using the evolution of the numbers and wages of temporary overseas Filipino workers between 1992 and 2009 to different destinations. We find that the migrant labor supply elasticity can be very large. Temporary migrants are very reactive to economic conditions in their potential destinations.
    Keywords: labor supply elasticity, temporary migration, international migration, multilateral resistance to migration
    JEL: F22 J31 J38 J61 O15
    Date: 2016–07
  12. By: Prieur, Fabien; Schumacher, Ingmar
    Abstract: In this article we investigate the role that internal and external conflict plays for optimal climate and immigration policy. Reviewing the empirical literature, we put forward five theses regarding the link between climate change, migration, and conflict. Based on these theses, we then develop a theoretical model in which we take the perspective of the North who unilaterally chooses the number of immigrants from a pool of potential migrants that is endogenously determined by the extent of climate change. Accepting these migrants allows increases in local production which not only increases climate change but also gives rise to internal conflicts. In addition, those potential migrants that want to move due to climate change but that are not allowed to immigrate may induce external conflict. While we show that the external and internal conflict play a significant yet decisively different role, it is the co-existence of both conflicts that makes policy making difficult. Considering only one conflict induces significant immigration but no mitigation. Allowing for both types of conflict, then depending on parameters, either a steady state without immigration but with mitigation will be optimal, or a steady state with a larger number of immigrants but less mitigation. Furthermore, we find the possibility of Skiba points, signaling that optimal policy depends on initial conditions, too. During transition we examine the substitutability and complementarity between the mitigation and immigration policy.
    Keywords: climate change, immigration, conflict, mitigation.
    Date: 2016–06

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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