nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2017‒02‒26
eighteen papers chosen by
Yuji Tamura
La Trobe University

  1. How Immigrants Helped EU Labor Markets to Adjust during the Great Recession By Kahanec, Martin; Guzi, Martin
  2. The Impact of Migration on Child Labor: Theory and Evidence from Brazil By Genicot, Garance; Mayda, Anna Maria; Mendola, Mariapia
  3. Climate Change, Internal Migration and the Future Spatial Distribution of Population: A Case Study of New Zealand By Michael P. Cameron
  4. Family Size, Sibling Rivalry and Migration: Evidence from Mexico By Bratti, Massimiliano; Fiore, Simona; Mendola, Mariapia
  5. Between Life Cycle Model, Labor Market Integration and Discrimination: An Econometric Analysis of the Determinants of Return Migration By Schuß, Eric
  6. Do Migrant and Business Networks Promote International Royalty Receipts? By TOMOHARA Akinori
  7. High-skilled migration and agglomeration By Pekkala Kerr, Sari; Kerr, William; Özden, Çağlar; Parsons, Christopher
  8. EU Mobility By Ritzen, Jo; Kahanec, Martin; Haas, Jasmina
  9. Migration settlement networks in the Carpathian Basin, 2001–2011 By Kincses, Áron; Bálint, Lajos
  10. Labour market integration of immigrants - Evidence for the German guest workers By Smolny, Werner; Rieber, Alexander
  11. The ‘Paradox of Diversity’: Economic Evidence from US Cities 1980–2010 By Nazmun Ratna, R. Quentin Grafton, Hang To
  12. High-Skilled Immigration, STEM Employment, and Non-Routine-Biased Technical Change By Nir Jaimovich; Henry E. Siu
  13. International Migration, Return Migration, and their Effects. A Comprehensive Review on the Romanian Case By Remus Gabriel Anghel; Alina Botezat; Anatolie Coșciug; Ioana Manafi; Monica Roman
  14. Understanding the Economic Impact of the H-1B Program on the U.S. By John Bound; Gaurav Khanna; Nicolas Morales
  15. The Economic Impact of East-West Migration on the European Union By Martin Kahanec; Mariola Pytlikova
  16. The Effects of International Migration on Native Workers' Unionisation in Austria By Antón, José-Ignacio; Böheim, René; Winter-Ebmer, Rudolf
  17. Microeconomic Impact of Remittances on Household Welfare: Evidences from Bangladesh By Wadood, Syed Naimul; Hossain, Md. Amzad
  18. The Macroeconomic Impact of Remittances: A Sending Country Perspective By Baas, Timo; Melzer, Silvia

  1. By: Kahanec, Martin (Central European University); Guzi, Martin (Masaryk University)
    Abstract: The economic literature starting with Borjas (2001) suggests that immigrants are more flexible than natives in responding to changing sectoral, occupational, and spatial shortages in the labor market. In this paper, we study the relative responsiveness to labor shortages by immigrants from various origins, skills and tenure in the country vis-à-vis the natives, and how it varied over the business cycle during the Great Recession. We show that immigrants in general have responded to changing labor shortages across EU member states, occupations and sectors more fluidly than natives. This effect is especially significant for low-skilled immigrants from the new member states or with the medium number of years since immigration, as well as with high-skilled immigrants with relatively few (1-5) or many (11+) years since migration. The relative responsiveness of some immigrant groups declined during the crisis years (those from Europe outside the EU or with eleven or more years since migration), whereas other groups of immigrants became particularly fluid during the Great Recession, such as those from new member states. Our results suggest immigrants may play an important role in labor adjustment during times of asymmetric economic shocks, and support the case for well-designed immigration policy and free movement of workers within the EU. Paper provides new insights into the functioning of the European Single Market and the roles various immigrant groups play for its stabilization through labor adjustment during times of uneven economic development across sectors, occupations, and countries.
    Keywords: immigrant worker, labor supply, skilled migration, labor shortage, wage regression, Great Recession
    JEL: J24 J61 J68
    Date: 2016–12
  2. By: Genicot, Garance (Georgetown University); Mayda, Anna Maria (Georgetown University); Mendola, Mariapia (University of Milan Bicocca)
    Abstract: This paper investigates the impact of internal migration on child labor outcomes in Brazil. We develop a theoretical model and evaluate it on children aged 10 to 14 using two decades of Census data. In our model, migration impacts child labor through changes in the local labor market, which is made up of both adults and children. Thus we complement the individual-level child-labor analysis with an empirical study of the labor-market impact of internal migration within Brazil. We exploit variation in the concentration of both skilled and unskilled immigrants at the municipality level and employ an instrumental variable strategy that relies on the historical (1980) distribution of immigrants within the country. Our results show that internal migration of a given skill level has a negative impact on corresponding adults' labor market outcomes. We also find that unskilled (skilled) immigration has a negative (positive) and significant impact on child labor. Finally, unskilled immigration increases children school attendance and decreases their likelihood of being idle.
    Keywords: child labor, migration
    JEL: F22 J61 O12
    Date: 2016–12
  3. By: Michael P. Cameron (University of Waikato)
    Abstract: This paper evaluates the impact of climate change on the future spatial distribution of population in New Zealand, with a focus on the effects of climate variables on internal migration dynamics. Specifically, a gravity modelling framework is first used to identify climate variables that have statistically significant associations with internal migration. The gravity model is then embedded within a cohort-component population projection model to evaluate the effect of different climate change scenarios on regional populations. Three climate variables are found to have statistically significant associations with internal migration: (1) mean sea level pressure in the destination; (2) surface radiation in the origin; and (3) wind speed at ten metres at the destination. Including these variables in the population projection model makes a small difference to the regional population distribution, and the difference between different climate scenarios is negligible. Overall, the results suggest that, while statistically significant, climate change will have a negligible effect on the population distribution of New Zealand at the regional level.
    Keywords: climate change; internal migration; gravity model; New Zealand
    JEL: J11 Q54 R23
    Date: 2017–02–21
  4. By: Bratti, Massimiliano (University of Milan); Fiore, Simona (University of Bologna); Mendola, Mariapia (University of Milan Bicocca)
    Abstract: This paper examines the causal effects of family size and demographic structure on offspring's international migration. We use rich survey data from Mexico to estimate the impact of sibship size, birth order and sibling composition on teenagers' and young adults' migration outcomes. We find no empirical support for the hypothesis that high fertility drives migration. The positive correlation between sibship size and migration disappears when endogeneity of family size is addressed using biological fertility (miscarriages) and infertility shocks. Yet, the chances to migrate are not equally distributed across children within the family. Older siblings, especially firstborn males, are more likely to migrate, while having more sisters than brothers may increase the chances of migration, particularly among girls.
    Keywords: international migration, Mexico, family size, birth order, sibling rivalry
    JEL: J13 F22 O15
    Date: 2016–12
  5. By: Schuß, Eric
    Abstract: This paper studies the determinants of return migration by applying the Cox hazard model to longitudinal micro data from 1996 to 2012, including immigrants of a wide range of nationalities. The empirical results reveal the validity of the life cycle model of Migration Economics and a strong return probability decreasing effect of labor market integration and societal integration. Modeling non-proportional effects of qualification and obtaining social benefits supports the human capital thesis and supplies new insights with regard to the supranational European labor market and to development policy. At the beginning of residence highly qualified immigrants as well as immigrants obtaining social benefits display a rather high hazard ratio that, however, decreases each additional year of residence afterwards. Via survivor functions further remarkable results about adverse selection effects and about the interaction between qualification and labor market integration can be found. Finally the paper derives important policy implications from the empirical analysis.
    JEL: C41 J61 O15
    Date: 2016
  6. By: TOMOHARA Akinori
    Abstract: This study examines how migration and business networks affect trade on intellectual property using bilateral data on Japan (or the United States) and the Organisation for Economic Co-operation and Development (OECD) member countries. The analyses are distinct in that they examine network effects comprehensively by combining previous works on tangible trade-migration relationships, together with the literature on trade-foreign direct investment (FDI) relationships. We show that intellectual property exports are positively related with the number of immigrants residing in Japan (or the United States). However, other network effects, specifically business networks, are not necessarily universal because two forces, i.e., network effects and trade-FDI interactions, could operate in opposite directions. We conclude that positive immigration network effects occur, but emigration and business network effects could vary depending on the development stages of intellectual property trade.
    Date: 2017–01
  7. By: Pekkala Kerr, Sari; Kerr, William; Özden, Çağlar; Parsons, Christopher
    Abstract: This paper reviews recent research regarding high-skilled migration. We adopt a data-driven perspective, bringing together and describing several ongoing research streams that range from the construction of global migration databases, to the legal codification of national policies regarding high-skilled migration, to the analysis of patent data regarding cross-border inventor movements. A common theme throughout this research is the importance of agglomeration economies for explaining high-skilled migration. We highlight some key recent findings and outline major gaps that we hope will be tackled in the near future.
    JEL: F15 F22 J15 J31 J44 L14 L26 O31 O32 O33
    Date: 2017–02–13
  8. By: Ritzen, Jo (IZA and Maastricht University); Kahanec, Martin (Central European University); Haas, Jasmina (Maastricht University)
    Abstract: The free movement of people and of workers (intra EU mobility) is one of the corner-stones of the EU. It has overwhelmingly benefitted the citizens of the EU member states both in the countries of work and in the countries of origin. Earlier apprehensions on crowding out of less educated workers in the countries of destination and on welfare migration turned out to be by and large refuted. At the same time, EU mobility policies still need a significant deepening and upgrading, to deal with special cases of crowding out in subsectors and with fraudulent contracts. Full integration of some groups of mobile EU workers is difficult because of linguistic and cultural barriers. There is a new challenge for EU policy: integration of circular mobile migrants. EU countries should be guided by the EU to cut red tape and harmonize administration.
    Keywords: EU enlargement, free movement of workers, labor mobility, migration policy, European Single Market, labor adjustment, stabilization, vibrant Europe
    JEL: J15 J61 J68
    Date: 2017–02
  9. By: Kincses, Áron; Bálint, Lajos
    Abstract: Looking at the relationship between the place of birth and current residential locations of foreign citizens arriving in Hungary from the neighbouring countries, in general, we establish that smaller migration distance involves migrants with a lower level of education, while preference for longer distances is determined by higher qualifications of migrants. The potential impact area of migrants grows in line with the education attainments of migrants. A scale-free settlement topology can be seen from the neighbouring countries of immigration to Hungary. This means that most of the settlements of Hungary have just a few links to settlements of neighbouring countries, from a migration point of view, while few Hungarian settlements have many connections. This finding also means that, instead of the national migration strategy, the subsidiary and the regional strategies can play a decisive role in the management of the international migration process
    Keywords: international migration Carpathian Basin network analysis
    JEL: F50 J61 R12
    Date: 2017–02
  10. By: Smolny, Werner; Rieber, Alexander
    Abstract: During the 1960s and 1970s a large number of immigrants came to Germany as temporary labour migrants. Many of them remained, captured their family and their children entered the labour market since the eighties. Our paper analyses their labour market experience in terms of employment, unemployment and earnings. The recruitment stop induced by the first oil crisis in 1973 allows us to distinguish guest workers, on the one hand, and family members, on the other hand, in a natural experiment setting. The results reveal enormous differences between the groups. Guest workers who came until 1973 differ markedly from those migrants who came later as family members, especially in terms of unemployment. These differences are more pronounced for women than for men. The descendants of the European guest workers are very well integrated into the German labour market which points towards positive long-run effects of the guest worker policy measure. However, the migrants stemming from a different ethnic background face much more difficulties in terms of labour market integration.
    JEL: J15 J21 J61
    Date: 2016
  11. By: Nazmun Ratna, R. Quentin Grafton, Hang To
    Abstract: We evaluate the economic significance of linguistic barriers to communication in 226 US cities from 1980 to 2010. We address the question: to what extent do linguistic barriers across social groups inhibit the benefits of knowledge exchange? The empirical results show that linguistic, racial and composite diversity increase the average income of working age population in American cities. This positive effect of diversity, however, diminishes the higher is the proportion of foreign-born population who lack English fluency. We call this the ‘paradox of diversity’. Overall, our findings provide important policy insights about how social diversity may enhance economic performance within cities.
    Keywords: diversity, economic performance, wages, cities, immigrants
    Date: 2017–02–16
  12. By: Nir Jaimovich; Henry E. Siu
    Abstract: We study the role of foreign-born workers in the growth of employment in STEM occupations since 1980. Given the importance of employment in these fields for research and innovation, we consider their role in a model featuring endogenous non-routine-biased technical change. We use this model to quantify the impact of high-skilled immigration, and the increasing tendency of such immigrants to work in innovation, on the pace of non-routine-biased technical change, the polarization of employment opportunities, and the evolution of wage inequality since 1980.
    JEL: E0 J0
    Date: 2017–02
  13. By: Remus Gabriel Anghel; Alina Botezat; Anatolie Coșciug; Ioana Manafi; Monica Roman
    Abstract: Romanian migration is today one of the largest, complex, and dynamic migration to Western Europe. This paper is a comprehensive review of the existing literature that aims at providing a full picture of this dynamic migratory process and discussing its far-reaching consequences. It first presents and characterizes the Romanian migration through the different phases during and after state socialism. The second part of the paper is dedicated to unfolding the socio-economic effects of the Romanian migration addressing the remitting behavior and its development over the past years. The issue of return migration is also addressed stressing that return is not much developed, however it has significant impacts through the emergence of returnees’ entrepreneurship. Finally we address some of the consequences of the medical doctors’ migration which is today considered one of the main migration challenges the country is facing.
    Keywords: Romania, international migration, remittances, return migration, physicians migration
    JEL: F22 F24 J15 P36
    Date: 2017–02–16
  14. By: John Bound; Gaurav Khanna; Nicolas Morales
    Abstract: Over the 1990s, the share of foreigners entering the US high-skill workforce grew rapidly. This migration potentially had a significant effect on US workers, consumers and firms. To study these effects, we construct a general equilibrium model of the US economy and calibrate it using data from 1994 to 2001. Built into the model are positive effects high skilled immigrants have on innovation. Counterfactual simulations based on our model suggest that immigration increased the overall welfare of US natives, and had significant distributional consequences. In the absence of immigration, wages for US computer scientists would have been 2.6% to 5.1% higher and employment in computer science for US workers would have been 6.1% to 10.8% higher in 2001. On the other hand, complements in production benefited substantially from immigration, and immigration also lowered prices and raised the output of IT goods by between 1.9% and 2.5%, thus benefiting consumers. Finally, firms in the IT sector also earned substantially higher profits due to immigration.
    JEL: J23 J24 J61
    Date: 2017–02
  15. By: Martin Kahanec; Mariola Pytlikova
    Abstract: This study contributes to the literature on destination-country consequences of international migration with investigations on the effects of immigration from new EU member states and Eastern Partnership countries on the economies of old EU member states over the years 1995-2010. Using a rich international migration dataset and an empirical model accounting for the endogeneity of migration flows we find positive and significant effects of post-enlargement migration flows from new EU member states on old member states’ GDP, GDP per capita, and employment rate and a negative effect on output per worker. We also find small, but statistically significant negative effects of migration from Eastern Partnership countries on receiving countries’ GDP, GDP per capita, employment rate, and capital stock, but a positive significant effect on capital-to-labor ratio. These results mark an economic success of the EU enlargements and EU’s free movement of workers.
    Keywords: EU enlargement, free mobility of workers, migration impacts, European Single Market, east-west migration, Eastern Partnership
    JEL: J15 J61 J68
    Date: 2017–02–16
  16. By: Antón, José-Ignacio (University of Linz); Böheim, René (University of Linz); Winter-Ebmer, Rudolf (University of Linz)
    Abstract: We analyze the effects of increased immigration of foreign workers on the unionisation rates of native workers in Austrian firms over the period 2002–2012. Our results suggest that lower union density of natives' in firms with more foreign workers is driven not by natives leaving unions, but by the different composition of turnover depending on the share of foreigners in the firm.
    Keywords: migration, unions, turnover, hiring
    JEL: J51 J61 J63
    Date: 2016–12
  17. By: Wadood, Syed Naimul; Hossain, Md. Amzad
    Abstract: This paper investigates the impact of both international and domestic remittances and migration on household welfare in Bangladesh. We employ a number of variables such as different types of poverty measures, household consumption expenditure, expenditures on health and education etc. to define household welfare. We use the Household Income and Expenditure Survey 2010 to estimate the impact of remittances on household welfare. To address the issue of self-selection, we have used the Propensity Score Matching (PSM) technique. The results reveal that although both internal and external remittances have significant impact on reducing poverty and increasing consumption expenditure, the degree of impact is much higher for external remittances compared to internal remittances. However we find no impact of remittance on household expenditure on education and healthcare.
    Keywords: remittances, migration, Bangladesh, propensity score matching
    JEL: I3 I31 J01 J08 J6
    Date: 2016–02
  18. By: Baas, Timo; Melzer, Silvia
    Abstract: Remittances are for a large number of developing countries the most important source of foreign funding. Destination countries of migration, however, fear a outflow of financial funds. Using data for Germany, we analyze the impact of remittances and migration on one of the major sending countries of remittances and the third biggest exporter in the world. For this purpose, we develop a dynamic open-economy general equilibrium model with altruistic households. By estimating the interrelation between household characteristics and remittances, we are able to derive altruism coefficients for different types of households. Households with a higher altruism coefficient derive higher utility from consumption by distant relatives and send more remittances. We endogenize remittances flows by applying these coefficients to our model. Remittance outflows have then a depreciating effect on the real exchange rate and provide incentives to reallocate resources from the non-tradable goods to the tradable goods sectors. In the case of Germany, this translates into a opposite Dutch disease phenomenon.
    JEL: F22 F24 D58
    Date: 2016

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