nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2017‒12‒18
eighteen papers chosen by
Yuji Tamura
La Trobe University

  1. The Origins of Cultural Divergence: Evidence from a Developing Country By Ho, Hoang-Anh; Martinsson, Peter; Olsson, Ola
  2. Female Brain Drain in Poland and Germany: New Perspectives for Research By Karolina Beaumont; Matthias Dauner; Matthias Kullas
  3. Foreign aid and asylum immigration. Does development matter? By Marina Murat
  4. How Migration Policies Moderate the Diffusion of Terrorism By Böhmelt, Tobias; Bove, Vincenzo
  5. Human Smuggling and Intentions to Migrate: Global Evidence from a Supply Shock along Africa-to-Europe Migration Routes By Guido, Friebel; Miriam, Manchin; Mariapia, Mendola; Giovanni, Prarolo;
  6. How self-sorting affects migrants’ labour market outcomes By Jon Kristian Pareliussen
  7. Migration, Social Capital, Financial Capital: How Migrants’ Family Relations Serve Internationally By Zubair, Muhammad; Bögenhold, Dieter
  8. The Effect of Attitudes toward Migrants on Migrant Skill Composition By Besart Avdiu
  9. Climatic variation as a determinant of rural-to-rural migration destination choice: Evidence from Tanzania By Zaneta Kubik
  10. Long live the American dream: Self-selection and inequality-persistence among American immigrants By Joakim Ruist
  11. Linguistic Distance, Networks and Migrants’ Regional Location Choice By Julia Bredtmann; Klaus Nowotny; Sebastian Otten
  12. Wage Differentials between Immigrants and Native Workers in the United States By Morakot Chaikwaeng
  13. Is Occupational Licensing a Barrier to Interstate Migration? By Johnson, Janna; Kleiner, Morris M.
  14. Globalization, Agricultural Markets and Mass Migration By Rowena Gray; Gaia Narciso; Gaspare Tortorici
  15. Urbanisation and household consumption in China By Margit Molnar; Thomas Chalaux; Qiang Ren
  16. New Evidence of Generational Progress for Mexican Americans By Brian Duncan; Jeffrey Grogger; Ana Sofia Leon; Stephen J. Trejo
  17. Elite Returnees in Beijing and Bangalore: Information Technology and Beyond By Kellee S. Tsai
  18. International Migration and Regional Housing Markets: Evidence from France By Hippolyte D'Albis; Ekrame Boubtane; Dramane Coulibaly

  1. By: Ho, Hoang-Anh (Department of Economics, School of Business, Economics and Law, Göteborg University); Martinsson, Peter (Department of Economics, School of Business, Economics and Law, Göteborg University); Olsson, Ola (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: Cultural norms diverge substantially across societies, often even within the same country. In the present paper, we study the voluntary settlement hypothesis, proposing that individualistic people tend to self-select into migrating out of reach from collectivist states towards the periphery and that such patterns of historical migration are reflected even in the contemporary distribution of norms. During most of the first millennium CE, the modern north of Vietnam was under an exogenously imposed Chinese rule. From the eleventh to the eighteenth centuries, historical Vietnam gradually expanded its territory to the Mekong River Delta through various waves of conquest and migration. In contrast to some recent research, we find very little support from historical sources for any major discontinuities in this territorial expansion. Combining archives with household survey and lab-in-the-field experiment, we demon- strate that areas being annexed earlier into historical Vietnam are nowadays more (less) prone to collectivist (individualist) culture. We argue that the southward out-migration of individualistic people was the main mechanism behind this finding, which is also in line with many historical accounts.
    Keywords: Culture; Individualism-Collectivism; Voluntary Settlement
    JEL: N45 O53 Z13
    Date: 2017–12
  2. By: Karolina Beaumont; Matthias Dauner; Matthias Kullas
    Abstract: This report provides an analysis of the issues related to female brain drain between Poland and Germany in the years 1989-2015: female and male migration patterns during specific time periods, the challenges of female migration, the emigration of highly-skilled individuals in Poland and Germany, as well as the issues regarding brain drain from a gender perspective.
    Keywords: Brain drain, brain gain, brain circulation, labour migration, intra-EU migration, Poland, Germany, gender equality, women’s migration, highly-educated migrants
    JEL: J11 J16 J24 F22 O15 R23
    Date: 2017–03
  3. By: Marina Murat
    Abstract: This paper tests the influence of aid from rich to developing economies on bilateral asylum inflows. Results show that aid effects on asylum applications are significant, but vary with the level of development of the recipient country. Aid to poor economies – especially in Sub-Saharan Africa – deters asylum inflows, while aid to medium-income developing countries attracts asylum seekers. Aid leads to negative spillovers on applications across donors. At the same time, foreign aid has no incidence on voluntary immigration. Overall, the deterring effects of aid on inflows from poor countries are stronger when transfers are coordinated across donors and are made conditional on economic and institutional improvements in the recipient economy.
    Keywords: foreign aid, asylum seekers and refugees, development
    JEL: F35 F22 J15
    Date: 2017–12
  4. By: Böhmelt, Tobias (University of Essex); Bove, Vincenzo (University of Warwick)
    Abstract: There is an ongoing debate among practitioners and scholars about the security consequences of transnational migration. Yet, existing work has not yet fully taken into account the policy instruments states have at their disposal to mitigate these, and we lack reliable evidence for the effectiveness of such measures. The following research addresses both shortcomings as we analyze whether and to what extent national migration policies affect the diffusion of terrorism via population movements. Spatial analyses report robust support for a moderating influence of states’ policies: while larger migration populations can be a vehicle for the diffusion of terrorism from one state to another, this only applies to target countries with extremely open controls and lax regulations. This research sheds new light on the security implications of population movements, and it crucially adds to our understanding of governments’ instruments for addressing migration challenges as well as their effectiveness.
    Keywords: Terrorism; Diffusion; Immigration; National Migration PoliciesJEL Classification:
    Date: 2017
  5. By: Guido, Friebel; Miriam, Manchin; Mariapia, Mendola; Giovanni, Prarolo;
    Abstract: Africa-to-Europe irregular migration depends heavily on human smuggling services. The demise of the Gaddafi regime in 2011 marked the end of a bilateral agreement between Italy and Libya and opened the Central Mediterranean Route for irregular border crossing. How did this remarkable increase in human smuggling services affect migration intentions in the rest of the region? This paper isolates a causal impact by exploiting the spatial dimension of the smuggling network and its change over time, which produced a heterogeneous decrease in bilateral migration distances between countries in Africa and Europe. We use this source of variation and a novel dataset of bilateral distances along irregular land and sea routes, combined with cross-country survey data on individual intentions to move from Africa to Europe between 2010 and 2012. Netting out pair- and country-by-time-specific fixed effects, we find a large negative effect of distance along smuggling routes on individual migration intentions. Shorter distances increase the willingness to migrate especially for youth, (medium) skilled individuals and those with a network abroad. The effect is stronger in origin countries not too far from Libya and with weak rule of law.
    Keywords: International Migration, Human Smuggling, Illegal Migration, Libyan Civil War
    JEL: K23 K42
    Date: 2017–12–06
  6. By: Jon Kristian Pareliussen
    Abstract: Assuming that immigrants select destinations according to absolute returns to their observable and unobservable human capital, I present a human capital model of migration accounting for taxes, transfers and limited portability of skills. The model predicts both segmented sorting of migrants to countries with a compressed income distribution, with negative sorting increasing with lower portability and positive sorting increasing with portability. Sorting to countries with greater income dispersion increases unambiguously with host-country relevant skills. Migrants to countries with compressed incomes will hence be more likely to be either out of work or overqualified and low-paid compared to natives with similar observable skills, and compared to migrants to countries with greater income dispersion. Regressions results on data for 16 OECD countries from the OECD Survey of Adult Skills are in line with the model. Controlling for observable skills and characteristics, including a literacy test score, immigrants from countries that are less wealthy or further away in geographical and cultural distance are significantly more likely to be either out of work or overqualified and low-paid in high-benefit countries. Wage compression, generous transfers and high taxes, typical traits of the so-called “Nordic” or “Flexicurity” model, may therefore contribute to making immigrant integration more challenging.
    JEL: J15 J18 J24 J61
    Date: 2017–11–22
  7. By: Zubair, Muhammad; Bögenhold, Dieter
    Abstract: Migration is a global phenomenon and has gained worldwide recognition for its socioeconomic impacts on host and home country. According to the literature, one of the most important emanations of migration are remittances. They facili-tate poverty reduction, education improvement, entrepreneurial investments and even the economic evolution of the home state. Globally, India and Paki-stan are in the top ten money receiving-countries. This paper provides an over-view about migration, and the worldwide remittance flow of migrants from India and Pakistan to their home countries. We sought to make a nonlinear model by dividing remittance per person with the number of immigrants from India and Pakistan worldwide, also focusing on the ratio of male and female immigrants in the population. The results show that remittance change exponentially over the years. This increase is stronger in the case of India than Pakistan and, more interestingly, gender ratios have influenced remittance per year.
    Keywords: migration; immigrant; immigration; remittance, gender, finance; diaspora; entrepreneurship; Pakistan; India
    JEL: F22 J6 O15
    Date: 2017
  8. By: Besart Avdiu
    Abstract: I investigate the effect of attitudes toward migrants on the average skill composition of immigrants in destination countries. A model is presented showing that negative attitudes toward migrants in general can reduce the average skill composition. The intuition for the result is that the highly skilled are more mobile and hence more sensitive to negative attitudes. I use survey data on attitudes toward migrants as well as data on migrant stocks by education level and origin country. The empirical analysis is based on two classes of theoretical models and I find consistent evidence for the hypothesis that more positive attitudes increase the skill composition of immigrants. The results imply that general attitudes toward migrants can be relevant for policies seeking to attract highly skilled migrants.
    Keywords: International migration, High-skilled immigration, Immigration Attitudes
    JEL: F22 J15 J61
    Date: 2017–09
  9. By: Zaneta Kubik (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper attempts to establish if climate acts as the determinant of destination choice in case of rural-to-rural migration. In the context of climate change where the link between climate and rural income has been well established, it is argued that migrants who move within rural areas choose destinations with more favourable climate conditions allowing for higher incomes. Employing the alternative-specific conditional logit model, this paper shows that such indirect effect of climate on migration destination choice is non-negligible, since one per cent increase in the expected income differentials between origin and destination, attributable to climate, increases the probability of choosing a given destination by at least nine percentage points. On the other hand, distance acts as a constraint for migration, in particular for the poorest individuals who might be inhibited from reaping full benefits of mobility.
    Keywords: climate change,regional migration,rural economies,agriculture,regional economics
    Date: 2017–08
  10. By: Joakim Ruist (University of Gothenburg)
    Abstract: This paper aims to explain the slow economic convergence between groups of different ancestries in the US, i.e. why these groups experience even less intergenerational mobility than individuals in the same country. It shows how excessively persistent inequality may be a long-lasting outcome of ancestors’ self-selection into migration, and need not involve e.g. ethnicity-based behaviors. A testable implication is that the correlation between home country characteristics that influence self- election, and migrants’ and their descendants’ outcomes should increase generation by generation. Verifying this, their ancestors’ migration distance has risen to explain around half the inequality between fourth-generation immigrant groups today.
    Keywords: migration; selection; intergenerational mobility; ancestry; immigrant integration
    JEL: F22 I24 J61 J62
    Date: 2017–12
  11. By: Julia Bredtmann (RWI, IZA, CReAM); Klaus Nowotny (University of Salzburg, Austrian Institute of Economic Research WIFO); Sebastian Otten (University College London, CReAM, RWI)
    Abstract: This paper analyzes the interaction between migrant networks and linguistic distance in the location choice of migrants to the EU at the regional level. We test the hypothesis that networks and the ability to communicate in the host country language, proxied by linguistic distance, are substitutes in the location decision. Based on individual level data from a special evaluation of the European Labour Force Survey (EU-LFS) and a random utility maximization framework, we find that networks have a positive effect on the location decisions while the effect of linguistic distance is negative. We also find a strong positive interaction effect between the two factors: networks are more important the larger the linguistic distance between the home country and the host region, and the negative effect of linguistic distance is smaller the larger the network size. In several extensions and robustness checks, we show that this substitutable relationship is extremely robust.
    Keywords: Location choice, ethnic networks, linguistic distance, EU migration,multilateral resistance
    JEL: F22 J61 R23
    Date: 2017–12
  12. By: Morakot Chaikwaeng
    Abstract: The dissertation aims to analyse the wage gaps between native workers and immigrants in the United States in the period of 1994, 2000, 2004, 2007, 2010 and 2013. The methodology used are Ordinary Least Square (OLS) and Oaxaca-Blinder decomposition. The results found that immigrants earn less than the natives and there are wage gaps between immigrants and native workers of about 0.14 taken into account the similar human capital characteristics.
    Date: 2017–11
  13. By: Johnson, Janna (University of Minnesota); Kleiner, Morris M. (Federal Reserve Bank of Minneapolis)
    Abstract: Occupational licensure, one of the most significant labor market regulations in the United States, may restrict the interstate movement of workers. We analyze the interstate migration of 22 licensed occupations. Using an empirical strategy that controls for unobservable characteristics that drive long-distance moves, we find that the between-state migration rate for individuals in occupations with state-specific licensing exam requirements is 36 percent lower relative to members of other occupations. Members of licensed occupations with national licensing exams show no evidence of limited interstate migration. The size of this effect varies across occupations and appears to be tied to the state specificity of licensing requirements. We also provide evidence that the adoption of reciprocity agreements, which lower re-licensure costs, increases the interstate migration rate of lawyers. Based on our results, we estimate that the rise in occupational licensing can explain part of the documented decline in interstate migration and job transitions in the United States.
    Keywords: Occupational licensing; Labor market regulation; Interstate migration
    JEL: J01 J1 J44 K0 L38
    Date: 2017–12–06
  14. By: Rowena Gray (University of California-Merced); Gaia Narciso (Trinity College Dublin); Gaspare Tortorici (Trinity College Dublin)
    Keywords: Age of mass migration; determinants of migration; agricultural shocks
    JEL: N93 N13 F22 O15
    Date: 2017–12
  15. By: Margit Molnar; Thomas Chalaux; Qiang Ren
    Abstract: This paper focusses on the link between urbanisation and consumption behaviour in China. Urbanisation is defined here as rural people moving to cities to work and migrant workers in cities obtaining urban residential status, against the backdrop of government plans to settle 100 million rural dwellers into cities and grant urban residential status to another 100 million migrant workers who already reside in cities. Using household data of the China Family Panel Studies dataset, the paper investigates the impact of those residential status changes on household consumption. The results of the analysis suggest that moving up the residential ladder in this way will likely result in increased consumption by almost 30% for both groups of people and thus contribute to rebalancing of the economy. Higher incomes and longer times in education are important drivers of this process, while a greater number of children in the family discourages consumption. This Working Paper relates to the 2017 OECD Economic Survey of China ( y-china.htm).
    Keywords: consumption, migrant workers, rebalancing, residential status, urbanisation
    JEL: E21 J61 P23 P25
    Date: 2017–11–22
  16. By: Brian Duncan; Jeffrey Grogger; Ana Sofia Leon; Stephen J. Trejo
    Abstract: U.S.-born Mexican Americans suffer a large schooling deficit relative to other Americans, and standard data sources suggest that this deficit does not shrink between the 2nd and later generations. Standard data sources lack information on grandparents’ countries of birth, however, which creates potentially serious issues for tracking the progress of later-generation Mexican Americans. Exploiting unique NLSY97 data that address these measurement issues, we find substantial educational progress between the 2nd and 3rd generations for a recent cohort of Mexican Americans. Such progress is obscured when we instead mimic the limitations inherent in standard data sources.
    JEL: J61 J62
    Date: 2017–11
  17. By: Kellee S. Tsai (Division of Social Science, The Hong Kong University of Science and Technology)
    Abstract: Based on industry data, research reports, and field interviews in both cities, this paper compares the networked effects of return migration in three areas: ICT, VC, and philanthropy/social entrepreneurship. We find that Chinese returnees play a substantial role in ICT companies listed abroad and dominate the domestic VC market. Overseas Indians and returnees have represented key links to multinationals’ outsourcing activities, and are as dominant in VC as their counterparts in China. In both Beijing and Bangalore, entrepreneurs draw on school- and work-based networks, whether domestic or international. A greater contrast between the Silicon Valleys are their areas of comparative advantage. ICT firms in Beijing are geared towards serving the domestic ICT market, while Bangalore has been oriented towards global outsourcing. In the field of philanthropy, despite high profile exceptions, returnees are less active than domestic entrepreneurs in both countries. However, returnees are increasingly active in running non-governmental organizations (NGOs) and social enterprises. Analytically, the paper outlines a framework for understanding returnee impact that includes both the individual attributes of returnees and the institutional context of different policy environments.
    Date: 2017–12
  18. By: Hippolyte D'Albis (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Ekrame Boubtane (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique); Dramane Coulibaly (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This article examines the causal relations between immigration and the characteristics of the housing market in host regions. We constructed a unique database from administrative records and used it to assess annual migration flows into France's 22 administrative regions from 1990 to 2013. We then estimated various panel VAR models, taking into account GDP per capita and the unemployment rate as the main regional economic indicators. We find that immigration has no significant effect on property prices but that higher property prices significantly reduce immigration rates. We also find no significant relationship between immigration and social housing supply.
    Keywords: Immigration,Property Prices,Social Housing,Panel VAR
    Date: 2017–11

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