nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2017‒04‒16
eighteen papers chosen by
Yuji Tamura
La Trobe University

  1. Diasporas and Conflict By Mariani, Fabio; Mercier, Marion; Verdier, Thierry
  2. Re-thinking Immigrant Investment Funds By Gamlen, Alan; Kutarna, Chris; Monk, Ashby
  3. Trade Liberalization in Peru; Adjustment Costs Amidst High Labor Mobility By Elin Baldárrago; Gonzalo Salinas
  4. Self-Employment Differentials among Foreign-Born STEM and Non-STEM Workers By Cai, Zhengyu; Winters, John V.
  5. Europe’s role in North Africa: development, investment and migration By Uri Dadush; Maria Demertzis; Guntram B. Wolff
  6. Do migrants transfer productive knowledge back to their origin countries? By Jérome Valette
  7. Multiculturalism and Growth: Skill-Specific Evidence from the Post-World War II Period By Frédéric Docquier; Riccardo Turati; Jérome Valette; Chrysovalantis Vasilakis
  8. Natives’ attitudes and immigrants’ unemployment durations By Sekou Keita; Jérome Valette
  9. Report No. 74: People to Jobs, Jobs to People: Global Mobility and Labor Migration By Eichhorst, Werner; Colussi, Tommaso; Guzi, Martin; Kahanec, Martin; Lichter, Andreas; Nikolova, Milena; Sommer, Eric
  10. On the Implications of Immigration Policy Restricting Citizenship: Evidence from the Dominican Republic By Amuedo-Dorantes, Catalina; Gratereaux Hernández, Carlos; Pozo, Susan
  11. Risk Attitudes and Household Migration Decisions By Dustmann, Christian; Fasani, Francesco; Meng, Xin; Minale, Luigi
  12. The Economic Impact of East-West Migration on the European Union By Kahanec, Martin; Pytliková, Mariola
  13. They win, I leave: the impact of the Northern League party on foreign internal migration By Egidio Farina
  14. Gone with the Wind: International Migration By Amelia Aburn; Dennis Wesselbaum
  15. The Effect of Far Right Parties on the Location Choice of Immigrants: Evidence from Lega Nord Mayors By Bracco, Emanuele; De Paola, Maria; Green, Colin P.; Scoppa, Vincenzo
  16. Immigration barriers and net brain drain By Orazbayev, Sultan
  17. Individual Characteristics, Behavioral Biases, and Attitudes toward Immigration: Evidence from a survey in Japan By TOMIURA Eiichi; ITO Banri; MUKUNOKI Hiroshi; WAKASUGI Ryuhei
  18. Productivity gains from agglomeration and migration in Chinese cities over 2002-2013 By Pierre-Philippe Combes; Sylvie Démurger; Shi Li

  1. By: Mariani, Fabio; Mercier, Marion; Verdier, Thierry
    Abstract: We build a model of confict in which two groups contest a resource and must decide on the optimal allocation of labor between fighting and productive activities. In this setting, a diaspora emanating from one of the two groups can get actively involved in the confict by transferring financial resources to its origin country. We find that the diaspora infuences the war outcome and, above a certain size, contributes to the escalation of violence. Given the characteristics of the confict equilibrium, the two groups of residents prefer to negotiate a peaceful settlement if there exists a sharing rule that makes both of them better off than war. We then identify the characteristics of the economy such that the diaspora acts as a peace-wrecking force or triggers a transition towards peace. A dynamic version of the model with an endogenous diaspora allows us to analyze the joint evolution of migration and confict in the home country, discuss the role of openness to migration and the possibility of multiple equilibria, and draw some policy implications.
    Keywords: Diasporas; Confict; International Migration
    JEL: D74 F22 O1
    Date: 2017–03
  2. By: Gamlen, Alan; Kutarna, Chris; Monk, Ashby
    Abstract: The idea of selling membership into society is not new, but it has taken on new life with the recent proliferation globally of Immigrant Investor Programs (IIPs). These programs involve the sale of national membership privileges to wealthy foreigners. They are justified by attractive policy objectives: to stimulate economic development and attract engaged investormigrants. But they are often plagued by failures to achieve either of these two goals. This paper surveys the universe of IIPs, reviews their objectives, activities and performance, and explores how they might be improved. We develop a two-dimensional typology for distinguishing IIPs according to types of criteria they impose on program applicants: (i) wealth criteria and (ii) engagement criteria. We map out four distinct immigrant investor strategies that emerge out of these different IIP criteria: Aspiring Astronauts, Absent Oligarchs, Migrant Mayors and Pioneer Patrons. By analyzing which IIP criteria encourage which strategies, we highlight common mismatches between stated objectives and embedded incentives, helping to explain why many IIPs report poor economic and immigration policy outcomes. We also contemplate solutions. In particular, we observe that the success of an IIP depends upon the coming-together of expertise from two domains—migration policy and investment management—and we draw upon insights from successful Sovereign Development Funds (SDFs), which likewise must simultaneously achieve public policy and financial goals. We propose a set of principles to guide the emergence of a new type of SDF: Immigrant Investment Funds (IIFs). We also indicate how such vehicles might help address urgent issues around migration and refugees, for example by investing in refugee and migrant entrepreneurship and in the infrastructures needed to incorporate newcomers, thereby demonstrating the public value of immigration at a time when anti-immigrant rhetoric has become a serious irritant in world politics.
    Keywords: Immigrant investor programs,immigrant investment funds,highly-skilled immigration policy,economic citizenship,financial citizenship,civic buyout,entrepreneur citizenship
    JEL: F22 F24 N3
    Date: 2017
  3. By: Elin Baldárrago; Gonzalo Salinas
    Abstract: While trade integration has been an engine of global growth and prosperity some sectors have been negatively affected by increased imports competition, as expected in theory. Higher labor mobility could lower these adjustment costs. This paper measures the cost of trade integration in a context of high internal migration. Specifically, we focus on the 2004- 14 period of trade liberalization in Peru (a major beneficiary of trade integration). Despite significant migration in response to lower tariffs, we find a significant negative relation between tariff reduction and socioeconomic indicators of imports-competing districts. This underscores the need for policy action to support the “losers from trade liberalization†.
    Keywords: Trade liberalization;Peru;Poverty;Tariff, Measurement and Analysis of Poverty, Regional, Urban, and Rural Analyses, General
    Date: 2017–03–09
  4. By: Cai, Zhengyu; Winters, John V.
    Abstract: This paper uses the American Community Survey to examine the previously overlooked fact that foreign STEM (science, technology, engineering, and mathematics) graduates have much lower self-employment rates than their non-STEM counterparts, with an unconditional difference of 3.3 percentage points. We find empirical support for differing earnings opportunities as a partial explanation for this self-employment gap. High wages in STEM paid-employment combined with reduced earnings in self-employment make self-employment less desirable for STEM graduates. High self-employment rates among other foreign-born workers partially reflect weak paid-employment opportunities. Public policy should encourage efficient use of worker skills rather than low-value business venture creation.
    Keywords: self-employment,immigration,foreign-born,college major,STEM,earnings
    JEL: F22 J15 J31 L26
    Date: 2017
  5. By: Uri Dadush; Maria Demertzis; Guntram B. Wolff
    Abstract: This paper was prepared for, and presented at, the informal ECOFIN meeting of EU finance ministers in Malta on 8 April 2017, with the title Boosting private investment in North Africa and beyond - what role for European Institutions? Africa’s population is projected to reach almost 2.5 billion by 2050. Migration from Africa to the EU is relatively stable, at around 500,000 migrants per year, or 0.1 percent of the EU population, yet irregular immigration into the EU has increased recently. Development is often seen as the way to reduce migration but the development-migration nexus is complex. At low levels of development, migration might increase with rising GDP per capita. This applies to most of sub-Saharan Africa. By contrast, North African countries are among the continent’s more developed economies. Their geographical positions make them natural partners for the EU. The region is diverse but political instability has been a common feature that in recent years has hindered economic development. Cyclical factors and deep-rooted structural weaknesses have also contributed to weak economic performance. Conditions for business are relatively poor and trade barriers in some sectors have prevented integration either between these countries or into global value chains. The authors of this Policy Contribution propose five ways in which EU policymakers can contribute to development in North Africa and build partnerships on trade, investment and migration.
    Date: 2017–04
  6. By: Jérome Valette (CERDI - Centre d'études et de recherches sur le developpement international - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper analyses whether international migrants contribute to foster innovation in developing countries by inducing a transfer of productive knowledge from destination to the migrants’ home countries. Using the Economic Complexity Index as a proxy for the amount of productive knowledge embedded in each countries, and bilateral migrant stocks to 20 OECD destination countries, we show that international emigration is a strong channel of technological transmission. Diasporas foster the local adoption of new technologies by connecting high technology countries with low ones, reducing the uncertainty surrounding their profitability. Our empirical results support the fact that technological transfers are more likely to occur out of more technologically advanced destinations and when emigration rates particularly high.
    Keywords: International migration,Technology transfer,Export sophistication,Diaspora externalities.
    Date: 2017–01–03
  7. By: Frédéric Docquier (IRES - Institut de recherche économique et sociale - Université catholique de Louvain); Riccardo Turati (IRES - Institut de recherche économique et sociale - Université catholique de Louvain); Jérome Valette (CERDI - Centre d'études et de recherches sur le developpement international - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique); Chrysovalantis Vasilakis (IRES - Institut de recherche économique et sociale - Université catholique de Louvain)
    Abstract: This paper empirically revisits the impact of multiculturalism (as proxied by indices of birthplace diversity and polarization among immigrants, or by epidemiological terms) on the macroeconomic performance of US states over the 1960-2010 period. We test for skill-specific effects of multiculturalism, controlling for standard growth regressors and a variety of fixed effects, and accounting for the age of entry and legal status of immigrants. To identify causation, we compare various instrumentation strategies used in the existing literature. We provide converging and robust evidence of a positive and significant effect of diversity among college-educated immigrants on GDP per capita. Overall, a 10% increase in high-skilled diversity raises GDP per capita by 6.2%. On the contrary, diversity among less educated immigrants has insignificant effects. Also, we find no evidence of a quadratic effect or a contamination by economic conditions in poor countries.
    Keywords: Growth.,Immigration,Culture,Birthplace diversity
    Date: 2017–01–03
  8. By: Sekou Keita (CERDI - Centre d'études et de recherches sur le développement international - Université d'Auvergne - Clermont-Ferrand I - Centre national de la recherche scientifique); Jérome Valette (CERDI - Centre d'études et de recherches sur le developpement international - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Which factors determine the performance of immigrants in the destination country labor market? Evidence in the literature suggests that discrimination may be a barrier to the economic assimilation of immigrants. However, depending on their country of origin, immigrants are heterogeneous with respect to the discrimination they face. This paper investigates how the attitude of natives affects immigrants’ unemployment duration in Germany. Using individual level panel data from the German Socio Economic Panel from 1984 to 2012, we employ survival analysis methods to model immigrants’ unemployment duration. We find that lower trust levels of natives towards the citizens of a given country, measured using Eurobarometer surveys, positively influence the unemployment duration of immigrants originating from this country. We show that this result is not driven by origin-specific unobserved heterogeneity, and that it is robust to different definitions of unemployment and different specifications. The results of our paper highlight the fact that immigrants face different obstacles depending on their origin when it comes to integrating destination country labor markets.
    Keywords: Immigrant workers,Unemployment duration,Discrimination.
    Date: 2017–01–03
  9. By: Eichhorst, Werner (IZA); Colussi, Tommaso (IZA); Guzi, Martin (Masaryk University); Kahanec, Martin (Central European University); Lichter, Andreas (IZA); Nikolova, Milena (IZA); Sommer, Eric (IZA)
    Abstract: Report commissioned by Randstad, Bonn 2017 (100 pages)
    Date: 2017–03–30
  10. By: Amuedo-Dorantes, Catalina (San Diego State University); Gratereaux Hernández, Carlos (Ministry of Economics, Dominican Republic); Pozo, Susan (Western Michigan University)
    Abstract: In 2010, an amendment to the Dominican constitution weakened the concept of jus soli citizenship by denying Dominican nationality to individuals born on Dominican soil to irregular immigrants. A few years later, in 2013, the Dominican High Court denationalized large numbers of individuals by reinterpreting language in the prior constitution to, in effect, apply the newer citizenship requirements retroactively to 1929. We gauge the impacts of changes to Dominican citizenship laws on Haitian immigrants and their descendants, to whom, many believe, these policies were directed. We find that the constitutional amendment affected informal employment of some Haitians and their descendants. Furthermore, the High Court's ruling resulted in a significant reduction in the share of Haitian-descendant youth registered in school. Non-attendance was attributed primarily to lack of appropriate documents. Given the rise of nationalist sentiments and discussions to further restrict and revoking citizenship in various regions of the world today, it is important to further explore how these policies ultimately impact targeted and vulnerable populations.
    Keywords: immigration policy, birthright citizenship, Dominican Republic, Haiti
    JEL: F22 F63 F66 F68 J61 K37
    Date: 2017–03
  11. By: Dustmann, Christian (University College London); Fasani, Francesco (Queen Mary, University of London); Meng, Xin (Australian National University); Minale, Luigi (Universidad Carlos III de Madrid)
    Abstract: This paper analyses the relation between individual migrations and the risk attitudes of other household members when migration is a household decision. We develop a simple model that implies that which member migrates depends on the distribution of risk attitudes among all household members, and that the risk diversification gain to other household members may induce migrations that would not take place in an individual framework. Using unique data for China on risk attitudes of internal (rural-urban) migrants and the families left behind, we empirically test three key implications of the model: (i) that conditional on migration gains, less risk averse individuals are more likely to migrate; (ii) that within households, the least risk averse individual is more likely to emigrate; and (iii) that across households, the most risk averse households are more likely to send migrants as long as they have at least one family member with sufficiently low risk aversion. Our results not only provide evidence that migration decisions are taken on a household level but also that the distribution of risk attitudes within the household affects whether a migration takes place and who will emigrate.
    Keywords: risk aversion, internal migration, household decisions
    JEL: J61 R23 D81
    Date: 2017–03
  12. By: Kahanec, Martin; Pytliková, Mariola
    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
  13. By: Egidio Farina (Department of Economics, University of Sussex)
    Abstract: This paper studies how electoral outcomes can shape individuals’ migration decisions. Using the Italian mayoral elections data from 2001 to 2014, I study how foreign citizens’ internal migration with a regular residency permit in North-Italy can be affected by the election of a mayor affiliated to the Northern League (Lega Nord) party, a far-right political movement characterized by a strong federalist, populist and anti-immigration ideology. In order to deal with the endogeneity of Northern League to city characteristics, a sharp regression discontinuity is used. Overall the results show that a mayor affiliated to the Northern League party causes an increase in the foreign out-migration rate one year after the election.
    Keywords: Northern League mayor, partisanship, close elections, regression discontinuity, migration
    JEL: R23 D72
    Date: 2017–04
  14. By: Amelia Aburn (Victoria University of Wellington, New Zealand); Dennis Wesselbaum (Department of Economics, University of Otago, New Zealand)
    Abstract: This paper adds to the literature on the determinants of international migration. First, we offer a joint analysis of the driving forces of migration capturing year-to-year variations and long-run effects. Second, we analyze the dynamic response of migration to shocks to its determinants. We start by presenting a theoretical model that allows us to model migration as an augmented gravity equation. We then construct a rich panel data set with 16 destination and 198 origin countries between 1980 and 2014. Most importantly, we find that climate change is a more important driver than income and political freedom together. Our results imply that a large time dimension is key to understand the effects of climate change. We then estimate a panel vectorautoregressive model showing that the dynamic response of migration is very different across shocks to different driving forces. Our findings carry implications for national and international immigration policies.
    Keywords: Climate Change, Determinants, Dynamic Effects, International Migration
    JEL: F22 O15 Q54
    Date: 2017–04
  15. By: Bracco, Emanuele (Lancaster University); De Paola, Maria (University of Calabria); Green, Colin P. (Lancaster University); Scoppa, Vincenzo (University of Calabria)
    Abstract: Immigration has increasingly taken centre-stage in the political landscape. Part of this has been rise in far-right, anti-immigration parties in a range of countries. Existing evidence suggests that the presence of immigrants has a substantial effect on the political views of the electorate, generating an advantage to these parties with anti-immigration or nationalist platforms. This paper explores a closely related but overlooked issue: how immigrant behavior is influenced by these parties. We focus on immigrant location decisions in Northern Italy which has seen the rise of the anti-immigration party Lega Nord. We construct a dataset of mayoral elections in Italy for the years 2002-2014, and calculate the effect of electing a mayor belonging to, or supported by Lega Nord. To identify this relationship we focus on mayors who have been elected with narrow margins of victory in a Regression Discontinuity framework. The election of Lega Nord mayor discourages immigrants from moving into the municipality.
    Keywords: immigration, geographical mobility, voting behavior, political economy, regression discontinuity design
    JEL: J15 J61 D72
    Date: 2017–03
  16. By: Orazbayev, Sultan
    Abstract: Education and employment histories of more than 650 thousand scientists contained in ORCID data can shed light on the patterns of brain drain and brain gain in over 200 countries (and territories) over the last 40 years. The incidence of brain drain and brain gain is positively correlated across space and time. More restrictive immigration policy towards skilled workers and students is associated with lower levels of skilled emigration (brain drain), consistent with competition of domestic and foreign scientists for a limited number of domestic academic posts. However, after controlling for time and country heterogeneity, increased barriers to immigration are associated with a relatively larger effect on the inflow of skilled immigrants (brain gain), so more restrictive policy is associated with net brain drain.
    Keywords: brain drain; brain gain; high-skilled migration; scientific mobility; immigration policy
    JEL: F2 F22 F6 F63 J61 O15
    Date: 2017–03–31
  17. By: TOMIURA Eiichi; ITO Banri; MUKUNOKI Hiroshi; WAKASUGI Ryuhei
    Abstract: This paper examines individual attitudes toward immigration and compares them with trade policy preferences based on a survey of over 10,000 respondents in Japan. People opposing both immigration and import liberalization are influenced by status-quo bias, while risk averters are more likely to be protectionists. Individuals with anti-immigrant sentiments tend to have pessimistic prospects of the national economy, dislike of changing of residential locations, or have no personal acquaintances with foreigners. These findings suggest that wide-ranging measures are required for expanding support for immigration. We also confirm the effects of such standard variables as education, occupation, unemployment, and gender.
    Date: 2017–03
  18. By: Pierre-Philippe Combes (ECON - Département d'économie - Sciences Po, GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - UJM - Université Jean Monnet [Saint-Etienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Sylvie Démurger (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - UJM - Université Jean Monnet [Saint-Etienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Shi Li (Beijing Normal University)
    Abstract: We evaluate the evolution of productivity gains from Chinese cities over time, from 2002 to 2013. In 2002, rural migrants were exerting a strong positive externality on natives' earnings, which were also higher when access to foreign markets through access to sea was higher. In 2007 and then further in 2013, city size (employment density but also land area) has become the crucial determinant of productivity whereas market access, internal or external, plays no direct role. Rural migrants still enhance natives' earnings, though the effect is more than hal f lower than in 2002. Urban gains, and their evolution over time, are very similar on total and per hour earnings. Skilled workers and females seem to gain slightly more from cities than unskilled workers and males.
    Keywords: urban development,agglomeration economies,wage disparities,migration
    Date: 2017

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