nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2016‒10‒09
seventeen papers chosen by
Yuji Tamura
La Trobe University

  1. Climatic Factors as Determinants of International Migration: Redux By Michel Beine; Christopher R. Parsons
  2. Does working abroad affect political opinions? Evidence from Moldova By Ruxanda Berlinschi
  3. Do migrants think differently? Evidence from East European and post-Soviet states By Ruxanda Berlinschi; Ani Harutyunyan
  4. Natives and migrants in home production: The case of Germany By Forlani, Emanuele; Lodigiani, Elisabetta; Mendolicchio, Concetta
  5. Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities By Bas Karreman; Martijn J. Burger; Frank G. van Oort
  6. The price of sharing: support for universal and equal access to health care in diversifying neighborhoods By Neundorf, Anja; Cavaille, Charlotte
  7. Estimating the economic effects of remittances on the left-behind in Cambodia By Vutha Hing; PHANN Dalis; Roth T.M.S Vathana; Sreymom Sum
  8. Immigrant Crime and Legal Status: Evidence from Repeated Amnesty Programs By Fasani, Francesco
  9. The Impact of Offshoring and Migration Policies on Migration Flows By Cosimo Beverelli; Gianluca Orefice; Nadia Rocha
  10. Time, Space and Skills in Designing Migration Policy By Michal Burzynski
  11. Third Country Effect of Migration: the Trade-Migration Nexus Revisited By Erik Figueiredo; Luiz Renato Lima; Gianluca Orefice
  12. Immigrant Birthcountry Networks and Unemployment Duration: Evidence around the Great Recession By Mundra, Kusum; Rios-Avila, Fernando
  13. Immigration and the UK: Reflections After Brexit By Marco Alfano; Christian Dustmann; Tommaso Frattini
  14. Brexit and the UK labour market By Barbara Petrongolo
  15. Migration, remittances, labour market and human capital in Senegal By Ameth Saloum Ndiaye; Oumoul Khayri NIANG; Sessinou DEDEHOUANOU; Ya Cor NDIONE
  16. On the Economics and Politics of Refugee Migration By Christian Dustmann; Francesco Fasani; Tommaso Frattini; Luigi Minale; Uta SchÓ§nberg
  17. Immigration Policy and Macroeconomic Performance in France By Hippolyte D'Albis; Ekrame Boubtane; Dramane Coulibaly

  1. By: Michel Beine (CREA, Université du Luxembourg); Christopher R. Parsons (University of Western Australia)
    Abstract: In this paper, we revisit the issue of environmental change as a potential determinant of international migration, thereby providing an extension of our earlier paper. In contrast to Beine and Parsons (2015) and in light of recent empirical contributions, we adopt an alternative identification strategy in which we only include fixed effects together with our measures of climatic change in order to quantify the net partial effect of climatic change on bilateral migration. Again drawing on panel data from 1960-2000, we further exploit the dyadic dimension of our data to highlight the importance of neighbouring countries and former colonial powers in determining the direction of climate-induced emigration. We additionally highlight the importance of how differences in modelling climate change can lead to differing results. Our baseline results suggest that climatic change affects individuals’ credit constraints more than their desire to move. Our key findings are that natural disasters deter emigration from all origin countries but importantly spur emigration to neighbouring countries while for middle income origins, natural disasters while deterring migration, foster emigration to former colonial powers.
    Keywords: International Migration, Environmental change; Natural disasters
    JEL: F22 J61
    Date: 2016
  2. By: Ruxanda Berlinschi
    Abstract: This paper investigates the effects of work experience abroad on political opinions using survey data from Moldova, a former soviet republic caught in an ideological battle between Russia and the West, with high emigration rates to both destinations. Contrarily to studies conducted in Africa or Latin America, we find no effect of past migration on democratic participation or on critical governance assessment. Likewise, no effect is found on domestic policy preferences. The one dimension strongly associated with migration experience is geopolitical preference, whereby return migrants from former Soviet countries are more likely to support closer ties with Russia, while return migrants from Western countries show higher support for EU integration, controlling for economic, demographic and ethnic confounding factors. For identification, we instrument individual migration with district level migrant networks. IV regressions show that only work experience in Western countries affects geopolitical preferences.
    Keywords: return migration, political opinions, Moldova, survey data
    Date: 2016
  3. By: Ruxanda Berlinschi; Ani Harutyunyan
    Abstract: This research analyzes differences in values and beliefs between individuals in European and post-Soviet states who intend to emigrate and those who do not. In particular, we investigate which political, economic and social values and beliefs are significant determinants of the intention to emigrate, after controlling for relevant socio-economic and demographic confounding factors. The results indicate that self-selection patterns exist in some dimensions, such as evaluation of home country governance and institutions, political participation and trust in other people, while they are absent in other dimensions, such as economic liberalism, views on democracy and free markets. Results also indicate that migrant self-selection patterns are heterogeneous across regions. This analysis aims to improve our understanding of the determinants of emigration, as well as of its possible consequences on the dynamics of governance and institutions.
    Keywords: Migration determinants, Culture, Transition economies
    Date: 2016
  4. By: Forlani, Emanuele; Lodigiani, Elisabetta; Mendolicchio, Concetta (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: In this paper, we assess the impact of international migration, and the induced home-care service labour supply shock, on fertility decisions and labour supply of native females in Germany Specifcally, we consider individual data of native women from the German Socio-Economic Panel and we merge them with the data on the share of female immigrants and other regional labour market characteristics We fnd that an increase of the share of female immigrants at the local level induces women to work longer hours and positively afects the probability to have a child This efect strengthens for (medium) skilled women and, among them, for women younger than 35 years of age The negative change in household work attitude confrms the behavioural validity of our results.
    JEL: J13 J22 J61
    Date: 2016–10–04
  5. By: Bas Karreman (Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands); Martijn J. Burger (Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands); Frank G. van Oort (Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands)
    Abstract: Overseas Chinese communities are an important determinant in the location choice of greenfield investments made by mainland Chinese multinational enterprises across European regions. Conceptually embedded in a relational approach, this effect is shown through an empirical analysis of an exhaustive set of investment projects across NUTS-1 regions in 26 European countries for the period 2003-2010. When controlling for endogeneity bias and the embeddedness of existing Chinese economic activity, we find that the importance of overseas communities in the location choices of Chinese firms is based on increased access to strategic information. Our results confirm that the relationship between the size of an overseas Chinese community and the probability of Chinese investment is stronger for communities hosting newer generations of Chinese migrants; in addition, they partially corroborate that this relationship is stronger when the education level of the community’s Chinese migrants is higher. Our findings are particularly robust in the context of knowledge-intensive sectors and high value-added functions.
    Keywords: Overseas Chinese communities; China; Europe; greenfield FDI; relational view
    JEL: F20 L20 R30
    Date: 2016–09–30
  6. By: Neundorf, Anja; Cavaille, Charlotte
    Abstract: Is immigration undermining mass support for the welfare state? While an increase in the number of immigrants might not impact the willingness to fund existing universal programmes such as health care, it can undermine the normative commitment to universal and equal access to care. These norms are key to the support public health care systems usually command. Using British panel data matched to contextual data from the 1991 and 2001 censuses, we show that individuals who experience an increase in the share of foreign born in their neighborhood become less likely to support universal access to health care.
    Date: 2016–09–30
  7. By: Vutha Hing; PHANN Dalis; Roth T.M.S Vathana; Sreymom Sum
    Abstract: Using propensity score matching with the 2009 Cambodia Socio-Economic Survey of households, this study examines the effects of remittances on indicators of household wellbeing: poverty, consumption and labour participation of non-migrant members. The theoretical framework is built upon a “new economics of labour migration”, hypothesising that the emigration decision is jointly determined by households and individual migrants and that remittances basically represent a form of contractual arrangements between them. The results indicate that households with at least one migrant member and which receive remittances could reduce their poverty headcount rate by 3-7 percentage points vis-à-vis their matched controls. Remittances also reduce depth and severity of poverty of treated households. On the contrary, remittances generate a 5-9 percent “dependency effect” on working age adults who are employed due to reduced weekly hours worked. The impact of remittances on labour participation and salary income is, however, vulnerable to unobservable factors.
    Keywords: Remittances, Propensity Score Matching, Cambodia, Poverty, Labour Participation, New Economics of Labour Migration, Migrant-sending households
    Date: 2015
  8. By: Fasani, Francesco (Queen Mary, University of London)
    Abstract: Do general amnesty programs lead to reductions in the crime rate among immigrants? We answer this question by exploiting both cross-sectional and time variation in the number of immigrants legalized generated by the enactment of repeated amnesty programs between 1990 and 2005 in Italy. We address the potential endogeneity of the "legalization treatment" by instrumenting the actual number of legalized immigrants with alternative predicted measures based on past amnesty applications patterns and residential choices of documented and undocumented immigrants. We find that, in the year following an amnesty, regions in which a higher share of immigrants obtained legal status experienced a greater decline in non-EU immigrant crime rates, relative to other regions. The effect is statistically significant but relatively small and not persistent. In further results, we fail to find any evidence of substitution in the criminal market from other population groups - namely, EU immigrants and Italian citizens - and we observe a small and not persistent reduction in total offenses.
    Keywords: illegal migration, legalization, migration policy
    JEL: F22 J61 K37
    Date: 2016–09
  9. By: Cosimo Beverelli; Gianluca Orefice; Nadia Rocha
    Abstract: In a theoretical framework that extends Ottaviano et al. (2013) to three countries, we investigate two research questions. First, whether offshore workers directly compete with migrants from the same origin country to perform tasks of low/medium complexity (migration-offshoring substitutability). Second, whether migrants from different origin countries compete among each other (migration diversion). These questions are addressed empirically using a dataset covering 28 OECD high-income countries (as destinations of migrants flows) and 144 non high-income countries (as origins of migrant flows) for the period 1996-2010. The empirical results suggest strong direct substitutability between migrant and offshore workers from the same origin country and the absence of policy driven migration diversion across different origin countries.
    Keywords: Migrant Employment;Migration-Offshoring Substitutability;Migration Diversion
    JEL: F22 F23
    Date: 2016–09
  10. By: Michal Burzynski (CREA, Université du Luxembourg)
    Abstract: This paper proposes a multi-country model of international migration in which college-educated workers choose their destination country, preferred type of visa, and the optimal duration of stay. Combining these elements into a unified theoretical framework provides a micro-foundation for the multilateral resistance to migration. The proposed theory is applied to investigate the global implications of decreasing the costs of six-year visas for highly skilled professionals in the EU, calibrated as an introduction of H1B visas. This is compared with a policy of reducing income tax for medium-term, college-educated, foreign workers. The two counterfactuals indicate a significant rise in the yearly inflows and total stocks of highly skilled immigrants into the EU. The outcomes of the former policy are driven by a “visa-substitution” effect within the group of current emigrants, while the latter scenario results in an increase in the pool of international migrants. Both policies induce a “destination-substitution” effect—losses of skilled migrants by non-EU states, which is reinforced by a multilateral resistance to migration.
    Keywords: migration policy, temporary migration, discrete choice models, H1B visas
    JEL: F22 J61
    Date: 2016
  11. By: Erik Figueiredo; Luiz Renato Lima; Gianluca Orefice
    Abstract: This paper proposes a new channel through which migrants can affect the import demand of the host country. In migrating from origin to destination country, migrants observe a change in the prices of the bundle of consumable goods. In particular, the migration decision can reflect a reduction in the price of imported goods (due to lower applied tariff) for the consumption bundle of migrants: emigration towards less (tariff) protected countries allows the consumption of products that were prohibitively protected in the origin countries of migrants. To test this channel we estimate the import demand effect of migrant groups coming from third high (tariff) protected countries. We use a theory-grounded gravity estimations and a fresh econometric techniques able to address both the zero migration flows problem and the endogeneity of migrants. Our results suggest that such a third-country immigrant effect is significant and positive.
    Keywords: Trade-Migration;Third-Country Effect;Quantile Regression;Imputation
    JEL: F14 C21 C36
    Date: 2016–09
  12. By: Mundra, Kusum (Rutgers University); Rios-Avila, Fernando (Levy Economics Institute)
    Abstract: Using data from the CPS this paper examines the role of birth-country networks on immigrants' unemployment duration from 2001 to 2013. We find that networks significantly lower unemployment duration for all immigrants. Varying the effect of networks over duration categories we find that networks are more effective in lowering duration for immigrants unemployed for 1-2 months than immigrants who are unemployed for longer periods and this effect is further strengthened during the post recession period. This supports the Calvo-Armengol and Jackson hypothesis which posits that longer the agent is unemployed, less effective are her social networks in job search. Our findings are robust to different specifications.
    Keywords: social networks, immigrants, unemployment duration, Great Recession
    JEL: J61 J64 D10
    Date: 2016–09
  13. By: Marco Alfano (University of Strathclyde); Christian Dustmann (University College London); Tommaso Frattini (University of Milan)
    Abstract: This paper describes the main features of immigration in the UK, and puts it in perspective with the experience of other advanced economies. It then reviews the most recent available evidence on the labour market and fiscal effects of immigration in the UK. This evidence is assessed in relation to some of the claims that were made in the run up to the Brexit referendum.
    Keywords: Immigration, Brexit, labour market impact, fiscal impact
    JEL: J31 J61 J68
    Date: 2016–09–28
  14. By: Barbara Petrongolo
    Abstract: Following the referendum vote to leave the European Union, the UK faces a trade-off between retaining access to the Single Market and restricting free movement of labour. Barbara Petrongolo considers the likely impact of tougher immigration controls on the wages and employment prospects of the UK-born and the current stock of immigrants.
    Keywords: Brexit, EU Referendum, UK economy, immigration, labour market
    Date: 2016–10
  15. By: Ameth Saloum Ndiaye; Oumoul Khayri NIANG; Sessinou DEDEHOUANOU; Ya Cor NDIONE
    Abstract: This study investigates how migration and remittances affect labour market participation in Senegal. Further, it examines the effect of remittances on human capital development. The results reveal that migration and remittances reduce labour market participation of household members with migrants. More importantly, we find that the labour market participation depends negatively on the level of remittances, which supports the reservation wage theory. We also find that remittances increase expenditures on human capital development, as approximated by education and health spending. These findings hold true across specifications and econometric estimation procedures.
    Keywords: migration, remittances, labour market participation, human capital, Senegal
    JEL: F22 F24 J21 J24
    Date: 2016
  16. By: Christian Dustmann (University College London); Francesco Fasani (Queen Mary University London); Tommaso Frattini (University of Milan); Luigi Minale (Universidad Carlos III de Madrid); Uta SchÓ§nberg (University College London)
    Abstract: This paper provides a comprehensive analysis of refugee migration, with emphasis on the current refugee crisis. After first reviewing the institutional framework laid out by the Geneva Convention for Refugees, we demonstrate that, despite numerous attempts at developing a common European asylum policy, EU countries continue to differ widely in interpretation and implementation. We then describe key features of the current refugee crisis and document the overall magnitudes and types of refugee movements, illegal border crossings, and asylum applications to EU member states. We next turn to the economics of refugee migrations, contrasting economic and refugee migrants, discussing the trade-offs between long-term asylum and temporary protection, and highlighting the economic advantages of increasingly coordinating the different national asylum policies. Finally, we illustrate the economic integration of past refugee migrants to EU countries and conclude with several policy recommendations.
    Keywords: asylum policy, asylum seekers, refugee crisis
    JEL: F22 J15 J61
    Date: 2016–09–28
  17. By: Hippolyte D'Albis (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics); Ekrame Boubtane (CERDI - Centre d'études et de recherches sur le developpement international - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Dramane Coulibaly (EconomiX - UPOND - Université Paris Ouest Nanterre La Défense - CNRS - Centre National de la Recherche Scientifique)
    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.
    Keywords: VAR models,immigration,female and family migration,growth,unemployment
    Date: 2015–02

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