nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2018‒07‒16
eighteen papers chosen by
Yuji Tamura
La Trobe University

  1. Subjective Well-Being among Communities Left Behind by International Migrants By Lara, Jaime
  2. Aggregate statistics on trafficker-destination relations in the Atlantic slave trade By Franses, Ph.H.B.F.; van den Heuvel, W.
  3. The Trafficking in Human Beings Crime in Romania By Nicoleta-Elena Buzatu
  4. Has Eastern European Migration Impacted UK-born Workers? By Sascha O. Becker; Thiemo Fetzer
  5. Taking the Skill Bias out of Global Migration By BIAVASCHI Costanza; BURZYNSKI Michal; ELSNER Benjamin; MACHADO Joël
  6. Economic Resources, Financial Aid and Remittances By Boulanger Martel, Simon Pierre; Pelling, Lisa; Wadensjö, Eskil
  7. German Public Attitudes Towards Asylum Seekers, Immigrants in the Workplace, Inflation, and Local Budgets: Evidence from a Representative Survey of the German Population By Bernd Hayo; Israel García; Pierre-Méon Guillaume; Florian Neumeier; Duncan Roth
  8. Reforming the migration governance system By Khasru, Syed Munir; Mahmud, Kazi Mitul; Nahreen, Avia
  9. Skill, Innovation and Wage Inequality: Can Immigrants be the Trump Card? By Gouranga Gopal Das; Sugata Marjit
  10. Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success By Michele Battisti; Giovanni Peri; Agnese Romiti
  11. Growing Up in Ethnic Enclaves: Language Proficiency and Educational Attainment of Immigrant Children By Danzer, Alexander M.; Feuerbaum, Carsten; Piopiunik, Marc; Woessmann, Ludger
  12. Fighting Mobile Crime By Rosario Crino; Giovanni Immordino; Gülen Karakoç-Palminteri; Salvatore Piccolo
  13. In-migration and Dilution of Community Social Capital By Julie L. Hotchkiss; Anil Rupasingha
  14. Brain Drain-Induced Brain Gain and the Bhagwati Tax: Are Early and Recent Paradigms Compatible? By Schiff, Maurice
  15. The Big Sort: Selective Migration and the Decline of Northern England, 1780-2018 By Clark, Gregory; Cummins, Neil
  16. Forced Migration and Human Capital: Evidence from Post-WWII Population Transfers By Becker, Sascha O.; Grosfeld, Irena; Grosjean, Pauline; Voigtländer, Nico; Zhuravskaya, Ekaterina
  17. Self-employment as a stepping stone to better labour market matching: a comparison between immigrants and natives By Ulceluse; Magdalena
  18. Facilitating Economic Development Through Employment Opportunities for Migrant Workers By Anusha Mahendran

  1. By: Lara, Jaime
    Abstract: This article assesses the impact of international migration on the subjective well-being of communities of origin in Mexico. Using a representative national survey and an empirical strategy with instrumental variables, we find that higher migratory intensity, at the municipal level, increases life satisfaction among men and women. There is a negative effect on emotional states of women, but an improvement in emotional states of men. Without controlling for schooling, a variable affected by international migration, men have a lower satisfaction with their perspective of future. Overall, the evidence in Mexico shows that the effects of international migration in the communities of origin are complex and with differential effects based on gender.
    Keywords: life satisfaction; emotions; Mexican migration
    JEL: I31 O15
    Date: 2018
  2. By: Franses, Ph.H.B.F.; van den Heuvel, W.
    Abstract: The available aggregated data on the Atlantic slave trade in between 1519 and 1875 concern the numbers of slaves transported by a country and the numbers of slaves who arrived at various destinations (where one of the destinations is “deceased”). It is however unknown how many slaves, at an aggregate level, were transported to where and by whom, that is, we know the row and column totals, but we do not known the numbers in the cells of the matrix. In this paper we use a simple mathematical technique to fill in the void. It allows us to estimate the trends in the deceases per transporting country, and also to estimate the fraction of slaves who went to own colonies or to others. For example, we estimate that of all the slaves who were transported by the Dutch only about 7 percent went to Dutch colonies, whereas for the Portuguese this number is about 37 percent.
    Date: 2018–06–01
  3. By: Nicoleta-Elena Buzatu (†Dimitrie Cantemir†Christian University)
    Abstract: The study below is meant to focus on the trafficking in human beings crime in Romania, especially analysis of the trafficking infraction provided in the Romanian Criminal Code. Romania is one of the transit states, but mostly one of the main source countries for trafficking in human beings in Europe. Currently, the trafficking in human beings phenomenon, as for the drug trafficking, the arms trafficking, corruption, tax evasion, represent one of the most extended ways of displaying the criminality, that, in a very short time span, recorded unimaginable and unacceptable proportions for the society we live in. The trafficking in human beings phenomenon is defined through the illegal migration. The Romanian legal response to the trafficking in human beings phenomenon was a gradual one, by ratification certain international provisions, but also through enacting a special law and legal measures that can be applied regarding the field in the talk.
    Keywords: crime, human trafficking, organized crime, Romanian Criminal Code
    Date: 2018–05
  4. By: Sascha O. Becker (University of Warwick); Thiemo Fetzer (University of Warwick)
    Abstract: The 2004 accession of 8 Eastern European countries to the European Union (EU) was accompanied by fears of mass migration. The United Kingdom - unlike many other EU countries - did not opt for temporary restrictions on the EU’s free movement of labour. We document that following EU accession more than 1 million people (ca. 3% of the UK working age population) migrated from Eastern Europe to the UK. We show that they mostly settled in places that had limited prior exposure to immigration. We provide evidence that these areas subsequently saw smaller wage growth at the lower end of the wage distribution and increased pressure on the welfare state, housing and public services. Using novel geographically disaggregated data by country-of-origin, we measure the effects of Eastern European migration on these outcomes for the UK-born and different groups of immigrants. Our results are important in the context of the UK’s Brexit referendum and the ongoing EU withdrawal negotiations in which migration features as a key issue.
    Keywords: Political Economy, Migration, Globalization, EU JEL Classification: R23, N44, Z13
    Date: 2018
  5. By: BIAVASCHI Costanza; BURZYNSKI Michal; ELSNER Benjamin; MACHADO Joël
    Abstract: Global migration is heavily skill-biased, with tertiary-educated workers being four times more likely to migrate than workers with a lower education. In this paper, we quantify the global impact of this skill bias in migration. Based on a quantitative multi-country model with trade, we compare the current world to a counterfactual with the same number of migrants, where all migrants are neutrally selected from their countries of origin. We find that most receiving countries benefit from the skill bias in migration, while a small number of sending countries is significantly worse off. The negative effect in many sending countries is completely eliminated ? and often reversed ? once we account for remittances and additional migration-related externalities. In a model with all our extensions, the average welfare effect of skill-biased migration in both OECD and non-OECD countries is positive.
    Keywords: migration; skill selection; global welfare; Skill bias; remittances; brain gain; brain drain
    JEL: F22
    Date: 2018–07
  6. By: Boulanger Martel, Simon Pierre (University of Montreal); Pelling, Lisa (Arena Idé); Wadensjö, Eskil (Stockholm University)
    Abstract: According to the World Bank, in 2017, an estimated 450 billion US dollars in remittances were sent to Low and Middle Income Countries. This means that the sum of remittances is more than three times larger than the sum of the world's total official aid to the same countries. The practice of sending remittances can be seen as one specific thing that migrants do as part of sustaining ties with their countries of origin. Remittances can be personal gifts, but are often sent in order to support family members and friends in their country of origin living under more difficult economic conditions. Remittances may also be a form of investment or repayments of loans. In this study we use data from the latest Swedish level of living survey LNU-UFB to study the factors influencing the propensity to remit. Using probit estimations, we find that the economic situation of the migrant, demographic variables and the migrants' ties to the home country are important. The propensity to remit also varies by country of origin. With an increasing number of migrants, the propensity to remit will have growing policy implications. It will have implications for Sweden as a donor country, raising issues of complementarity between remittances and official development aid. Migrants' propensity to remit will also be increasingly relevant for Sweden's integration policies, as the motives to remit might shape immigrants' decisions and priorities while settling in Sweden.
    Keywords: migration, remittances, foreign born
    JEL: F22 F24 J15
    Date: 2018–05
  7. By: Bernd Hayo (University of Marburg); Israel García (University of Marburg); Pierre-Méon Guillaume (Université Libre de Bruxelles); Florian Neumeier (Ifo-Institute Munich); Duncan Roth (IAB Nuremberg)
    Abstract: This paper provides background information and basic descriptive statistics for a representative survey of the German population conducted on our behalf by GfK in the first quarter of 2018. The survey covers various topics, including: 1) attitudes towards asylum seekers; 2) migrating workers in the workplace; 3) inflation and monetary policy; and 4) the role played by local budgets in local voting decisions. We also collect a broad range of socio-demographic and psychological indicators.
    Keywords: Survey evidence, Attitudes, Asylum seekers, Migrating workers, Inflation, Monetary policy, Local budgets, Germany
    JEL: D72 D90 E24 E31 E58 F22 H72 J61
    Date: 2018
  8. By: Khasru, Syed Munir; Mahmud, Kazi Mitul; Nahreen, Avia
    Abstract: This paper analyzes and identifies the deficiencies in the current migration governance system, delineates pressing and structural challenges to global governance of forced migration and recommends pathways through which the Group 20, which is an informal forum comprised of the 19 most influential economies in the world and the EU, could play a seminal role to mobilize reform in the current global refugee management system, advocate for better policy formulation and enhanced policy coherence, encourage equitable burden sharing and improve refugee transport and resettlement services in origin, first asylum, transition and destination countries.
    Keywords: G20,global refugee governance,refugee burden sharing,refugee resettlement and transition,developing asylum countries,forced migration governance
    JEL: O19 R58 Z13
    Date: 2018
  9. By: Gouranga Gopal Das; Sugata Marjit
    Abstract: With the ensuing immigration reform in the US, the paper shows that targeted skilled immigration into the R&D sector that helps low-skilled labor is conducive for controlling inequality and raising wage. Skilled talent-led innovation could have spillover benefits for the unskilled sector while immigration into the production sector will always reduce wage, aggravating wage inequality. In essence, we infer: (i) if R&D inputs contributes only to skilled sector, wage inequality increases in general; (ii) for wage gap to decrease, R&D sector must produce inputs that goes into unskilled manufacturing sector; (iii) even with two types of specific R&D inputs entering into the skilled and unskilled sectors separately, unskilled labor is not always benefited by high skilled migrants into R&D-sector. Rather, it depends on the importance of migrants’ skill in R&D activities and intensity of inputs. Inclusive immigration policy requires inter-sectoral diffusion of ideas embedded in talented immigrants targeted for innovation.
    Keywords: HIB, immigration, innovation, wage gap, skill, R&D, policy, RAISE Act
    JEL: F22 J31 O15
    Date: 2018
  10. By: Michele Battisti; Giovanni Peri; Agnese Romiti
    Abstract: This paper investigates how the size of co-ethnic networks at the time of arrival affect the economic success of immigrants in Germany. Applying panel analysis with a large set of fixed effects and controls, we isolate the association between initial network size and long-run immigrant outcomes. We also look at those who were assigned to an initial location independently of their choice allows a causal interpretation of our estimates. We find that immigrants initially located in places with larger co-ethnic networks are more likely to be employed at first, but have a lower probability of investing in human capital.
    Keywords: networks, immigration, human capital, employment
    JEL: J24 J61 R23
    Date: 2018
  11. By: Danzer, Alexander M. (KU Eichstätt-Ingolstadt); Feuerbaum, Carsten (KU Eichstätt-Ingolstadt); Piopiunik, Marc (ifo Institute at the University of Munich); Woessmann, Ludger (ifo and LMU Munich)
    Abstract: Does a high regional concentration of immigrants of the same ethnicity affect immigrant children\'s acquisition of host-country language skills and educational attainment? We exploit the exogenous placement of guest workers from five ethnicities across German regions during the 1960s and 1970s in a model with region and ethnicity fixed effects. Our results indicate that exposure to a higher own-ethnic concentration impairs immigrant children\'s host-country language proficiency and increases school dropout. A key mediating factor for this effect is parents\' lower speaking proficiency in the host-country language, whereas inter-ethnic contacts with natives and economic conditions do not play a role.
    Keywords: immigrant children; ethnic concentration; language; education; guest workers;
    JEL: J15 I20 R23 J61
    Date: 2018–06–26
  12. By: Rosario Crino (Università Cattolica del Sacro Cuore di Milano, CEPR and CESifo.); Giovanni Immordino (Università di Napoli Federico II and CSEF); Gülen Karakoç-Palminteri (Università di Milano Bicocca); Salvatore Piccolo (Università di Bergamo and CSEF)
    Abstract: We develop a model in which two countries choose their enforcement levels non- cooperatively, in order to deter native and foreign individuals from committing crime in their territory. We assume that crime is mobile, both ex ante (migration) and ex post (fleeing), and that criminals who hide abroad after having committed a crime in a country must be extradited back. We show that, when extradition is not too costly, countries overinvest in enforcement compared to the cooperative outcome: insourcing foreign criminals is more costly than paying the extradition cost. By contrast, when extradition is sufficiently costly, a large enforcement may induce criminals to flee the country in which they have perpetrated a crime. Surprisingly, the fear of extraditing criminals enables countries to coordinate on the e¢ cient (cooperative) outcome.
    Keywords: Crime, Enforcement, Extradition, Fleeing, Migration
    JEL: K14 K42
    Date: 2018–06–27
  13. By: Julie L. Hotchkiss; Anil Rupasingha
    Abstract: Consistent with predictions from the literature, we find that higher levels of in-migration dilute multiple dimensions of a community's level of social capital. The analysis employs a 2SLS methodology to account for potential endogeneity of migration.
    Keywords: social capital, migration, decennial census, social capital community benchmark survey, non-public data, simultaneous equations, endogeneity, factor analysis
    JEL: R23 D71 C36 C38
  14. By: Schiff, Maurice (World Bank)
    Abstract: Based on a welfare-maximization model of skilled migration where education generates a positive externality, this paper examines whether the early view regarding brain drain's (BD) negative impact on source countries and the Bhagwati tax (BT) associated with it, is compatible with the recent more optimistic BD-induced brain gain view. I derive BD's impact on education, welfare, optimal education subsidy (s), and a combination of s and BT, when residents' (emigrants') weight in the government's objective function is 1 (1 − β), with β ε [0,1]. I find that: i) education, welfare and s are higher (lower) under an open than under a closed economy for 1 − β larger (smaller) than the ratio of source-country to host-country income; ii) s and BT are 'policy complements,' i.e., they are positively related; and iii) BT increases with β and reaches a maximum at β = 1. Two implications and a proposal are: a) The early literature focused on resident – rather than on migrant – welfare (the β = 1 case), which is precisely where the optimal BT is largest; b) A second policy instrument should be useful, especially if there are constraints on making changes in the other one. Thus, as opening up the economy implies a lower s, raising BT should be beneficial if, say, parents' and teachers' organizations make it politically difficult if not impossible to reduce s; c) A proposal for collecting the tax is presented.
    Keywords: brain drain, brain gain, Bhagwati tax, education subsidy, welfare
    JEL: F20 F22 I25 O15
    Date: 2018–05
  15. By: Clark, Gregory; Cummins, Neil
    Abstract: Abstract The North of England is now poorer and less educated than the South. Using complete population data at the surname level 1837-2006, and a large sample of individuals born 1780-1929, this paper shows two things. First an important element in the decline of the North was selective outmigration of those with education and talent. This migration is evident even for the generation born 1780-1809, and continued to those born 1900-1929. There was also selective migration to the South of those with education and talent coming from outside England - Irish, Scottish, Pakistanis and others. However the migration of talent to the South created no significant external benefits to workers in the South, as would be predicted by the doctrines of the New Economic Geography. Surnames concentrated in the North do not show any national disadvantage in education, occupation or wealth. Also for workers of a given education or social background there is at most a very modest locational disadvantage associated with being born in the North. Thus there will be no efficiency gain from facilitating further migration south from the North, or from further efforts to bolster the economy of the North through government aid.
    Keywords: new economic geography; regional growth; sorting in labor market
    Date: 2018–06
  16. By: Becker, Sascha O. (University of Warwick); Grosfeld, Irena (Paris School of Economics); Grosjean, Pauline (UNSW); Voigtländer, Nico (UCLA); Zhuravskaya, Ekaterina (Paris School of Economics)
    Abstract: We exploit a unique historical setting to study the long-run effects of forced migration on investment in education. After World War II, the Polish borders were redrawn, resulting in large-scale migration. Poles were forced to move from the Kresy territories in the East (taken over by the USSR) and were resettled mostly to the newly acquired Western Territories, from which Germans were expelled. We combine historical censuses with newly collected survey data to show that, while there were no pre-WWII differences in education, Poles with a family history of forced migration are significantly more educated today. Descendants of forced migrants have on average one extra year of schooling, driven by a higher propensity to finish secondary or higher education. This result holds when we restrict ancestral locations to a subsample around the former Kresy border and include fixed effects for the destination of migrants. As Kresy migrants were of the same ethnicity and religion as other Poles, we bypass confounding factors of other cases of forced migration. We show that labor market competition with natives and selection of migrants are also unlikely to drive our results. Survey evidence suggests that forced migration led to a shift in preferences, away from material possessions and towards investment in a mobile asset – human capital. The effects persist over three generations.
    Keywords: Poland, Forced Migration, Uprootedness, Human Capital JEL Classification: N33, N34, D74, I25
    Date: 2018
  17. By: Ulceluse; Magdalena
    Abstract: The paper investigates whether self-employment represents a way to reduce overeducation and improve labour market matching, in a comparative analysis between immigrants and natives. Using the EU Labour Force Survey for the year 2012, and controlling for a list of demographic characteristics and general characteristics of 30 destination countries, I find that the likelihood of being overeducated decreases for self-employed immigrants, with inconclusive results for self-employed natives. The results shed light on the extent to which immigrants adjust to labour market imperfections and barriers to employment and might help explain the higher incidence of self-employment that immigrants exhibit, when compared to natives. This is the first study to systematically study the nexus between overeducation and self-employment in a comparative framework. Moreover, the paper tests the robustness of the results by employing two different measures of overeducation, contributing to the literature of the measurement of overeducation.
    Keywords: self-employment,immigrants,skills mismatch,overeducation
    JEL: J15 J24 J61
    Date: 2018
  18. By: Anusha Mahendran (Curtin University, Australia)
    Abstract: The World Bank for several years has endorsed an agenda of promoting economic development through labour migrant programs in many regions including the Oceanic-Pacific region. Evidence also seems to indicate that the effective facilitation of economic development through labour migrant programs requires appropriate matching of migrant workers to suitable employment opportunities in industry sectors within host countries where there exists relevant vacancies that migrant workers could be matched to and that they would be able to undertake in a meaningful way. As such, the analysis of pertinent labour market data relating to industry sectors experiencing labour shortages within host countries is necessary to accurately identify occupational groups which require an influx of appropriately matched migrant workers to meet labour demand. In addition such labour market data analysis would also enable the extent of the labour shortages across the job categories within the specific sectors to be astutely assessed and evaluated, which is likely to contribute to improving the overall success of the labour migrant policies and programs that are developed and implemented. To this end, this paper provides a summary analysis of the potential employment opportunities for migrant workers within specific occupational groups across relevant industry sectors in potential host countries.
    Keywords: economic development, employment opportunities for migrant workers
    Date: 2018–05

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