nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2017‒09‒03
five papers chosen by
Yuji Tamura
La Trobe University

  1. Return on trust is lower for immigrants By Cettolin, Elena; Suetens, Sigrid
  2. International Students, Immigration and Earnings Growth: The Effect of a Pre-immigration Canadian University Education By Hou, Feng; Lu, Yuqian
  3. The education motive for migrant remittances - Theory and evidence from India By Matthieu Delpierre; Arnaud Dupuy; Michel Tenikue; Bertrand Verheyden
  4. Understanding the Impact of Tuition Fees in Foreign Education: the Case of the UK By Michel Beine; Marco Delogu; Lionel Ragot
  5. The Migration Accelerator: Labor Mobility, Housing, and Aggregate Demand By Gregory Howard

  1. By: Cettolin, Elena; Suetens, Sigrid
    Abstract: Trustworthiness is key for successful economic and social interactions. We conduct an experiment with a representative sample of the Dutch population to study whether trustworthiness depends on the ethnicity of the interaction partner. Native Dutch trustees play trust games with an anonymous other, who is either another native Dutch or an immigrant from non-Western descent. We find that the trustees reciprocate trust up to 13% less frequently if the trustor is a non-Western immigrant than if he/she is native Dutch. This percentage increases up to 23% for trustees who report disliking ethnic diversity in society in a survey that took place one year before the experiment. Since the decision to reciprocate does not involve behavioral risk, we take our results as evidence of taste-based discrimination. The implication is that the return on trust is lower for immigrants from non-Western descent than for native Dutch.
    Keywords: ethnic diversity; representative sample; taste-based discrimination; trust game; trustworthiness
    JEL: C72 C9 D01 J15
    Date: 2017–08
  2. By: Hou, Feng; Lu, Yuqian
    Abstract: This study uses large national longitudinal datasets to examine cross-cohort trends and within-cohort changes in earnings among three groups of young university graduates: immigrants who are former international students in Canada (Canadian-educated immigrants), foreign-educated immigrants who had a university degree before immigrating to Canada and the Canadian-born population.
    Keywords: Education, training and learning, Education, training and skills, Ethnic diversity and immigration, Outcomes of education
    Date: 2017–08–22
  3. By: Matthieu Delpierre (IWEPS, Belgium); Arnaud Dupuy (CREA, Université du Luxembourg); Michel Tenikue (LISER, Luxembourg); Bertrand Verheyden (LISER, Luxembourg)
    Abstract: This paper analyzes the impact of anticipated old age support, provided by children to parents, on intra-family transfers and education. We highlight an education motive for remittances, according to which migrants have an incentive to invest in their siblings’ education via transfers to parents, in order to better share the burden of old age support. Our theory shows that in rich families, selfish parents invest optimally in children education, while in poor families, liquidity constraints are binding and education is fostered by migrant remittances. We test these hypotheses on Indian panel data. Identification is based on within variation in household composition. We find that remittances received from migrants significantly increase with the number of school age children in the household. Retrieving the effects of household characteristics shows that more remittances tend to be sent to poorer and older household heads, confirming the old age support hypothesis.
    Keywords: Migration; Remittances; Education; Old age support
    JEL: D13
    Date: 2017
  4. By: Michel Beine (CREA, Université du Luxembourg); Marco Delogu (Université du Luxembourg, Université catholique de Louvain); Lionel Ragot (Université Paris Nanterre, EconomiX and CEPII)
    Abstract: This paper studies the determinants of international students’ mobility at the university- level, focusing specifically on the role of tuition fees. We first develop an original Random Utility Maximization model of location choice for international students in the presence of capacity constraints of the hosting institutions. The last layer of the model gives rise to a gravity equation. This equation is estimated using new data on student migration flows at the university level for the U.K. We control for the endogeneity of tuition fees by taking benefit of the institutional constraints in terms of tuition caps applied in the UK to European students at the bachelor level. The estimations support a negative impact of tuition fees and stress the need to account for the endogenous nature of the fees in the empirical identification of their impact. The estimations also support an important role of additional destination-specific variables such as host capacity, the expected return of education and the cost of living in the vicinity of the university.
    Keywords: Foreign students; Tuition fees; Location choice; University Quality.
    JEL: F22 H52 I23 O15
    Date: 2017
  5. By: Gregory Howard (MIT)
    Abstract: Because people choose to move to relatively prosperous regions, economists have traditionally believed that migration mitigates the effects of local shocks. In the first part of this paper, I document that the opposite holds in the data: within-U.S. migration causes a large reduction in the unemployment rate of the receiving city, over several years. To establish the causal effect of inmigration, I construct a plausibly exogenous shock by using the outmigration of other places and predicting its destination based on historical patterns. In the second part of the paper, I document that the increase in the demand for housing explains the boom, through two channels. The construction channel occurs because housing is a durable good: hence there is a surge in the number of new houses and construction jobs. The house price channel occurs because the migrants' housing demand drives up prices, leading to increased borrowing and higher labor demand in non-tradable sectors. Together, these channels account for the size of the labor demand boom. This boom implies that the endogenous response of migration amplifies local labor demand shocks, an effect I label the "migration accelerator." In the final part of the paper, I estimate that migration amplifies these shocks by 20 percent.
    Date: 2017

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