nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2019‒03‒11
eleven papers chosen by
Yuji Tamura
La Trobe University

  1. Highly skilled and well connected: Migrant inventors in cross-border M&As By Diego Useche; Ernest Miguelez; Francesco Lissoni
  2. Immigrant Artists: Enrichment or Displacement? By Borowiecki, Karol Jan; Graddy, Kathryn
  3. Moving Towards a Better Future? Migration and Children's Health and Education By Lara Cockx
  4. Political Hedgehogs: The Geographical Sorting of Refugees in Sweden By Wennström, Johan; Öner, Özge
  5. The Refugee Crisis and the Reinvigoration of the Nation State: Does the European Union Have a Common Refugee Policy? By Henrekson, Magnus; Öner, Özge; Sanandaji, Tino
  6. Revealing Stereotypes: Evidence from Immigrants in Schools By Alesina, Alberto F; Carlana, Michela; La Ferrara, Eliana; Pinotti, Paolo
  7. Working Paper 308 - The Diaspora and Economic Development in Africa By Blaise Gnimassoun; John Anyanwu
  8. Refugees welcome? Understanding the regional heterogeneity of anti-foreigner hate crimes in Germany By Entorf, Horst; Lange, Martin
  9. Exchange rate, remittances and expenditure of foreign-bornhouseholds: evidence from Australia By Syed Hasan; Nazmun Ratna; Shamim Shakur
  10. Measuring the Spatial Misallocation of Labor: The Returns to India-Gulf Guest Work in a Natural Experiment By Michael A. Clemens
  11. Migración internacional y determinantes de las remesas de trabajadores en Colombia By Aaron Levi Garavito-Acosta; Maria Mercedes Collazos-Gaitan; Manuel Dario Hernandez-Bejarano; Enrique Montes-Uribe

  1. By: Diego Useche (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Ernest Miguelez (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique, University of Barcelona, AQR-IREA); Francesco Lissoni (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique, Universita Bocconi - Università Bocconi)
    Abstract: Based on a relational view of international business, we investigate the role of migrant inventors in cross-border mergers and acquisitions undertaken by R&D-active firms. We hypothesize that the migrant inventors' international social networks can be leveraged by their employers in order to identify and/or integrate relevant knowledge bases of acquisition targets in the inventors' home country. We nuance our hypothesis by means of several conditional logistic regressions on a large matched sample of deals and control cases. The impact of migrant inventors increases with the distance between countries and for targets located in countries with weak administrative/legal systems, as well as when targets are either innovative or belong to high-tech sectors or to the same sector as the acquirer, and for full versus partial acquisitions.
    Keywords: cross-border mergers and acquisitions,migration,inventors,PCT patents
    Date: 2019–01
  2. By: Borowiecki, Karol Jan (Department of Business and Economics); Graddy, Kathryn (Brandeis University)
    Abstract: In order to investigate the role of immigrant artists on the development of artistic clusters in U.S. cities, we use the U.S. Census and American Community Survey, collected every 10 years since 1850. We identify artists and art teachers, authors, musicians and music teachers, actors and actresses, architects, and journalists, their geographical location and their status as a native or an immigrant. We look at the relative growth rate of the immigrant population in these occupations over a ten year period and how it affects the relative growth rate of native-born individuals in these artistic occupations. We find that cities that experienced immigrant artist inflows, also see a greater inflow of native artists by about 40%.
    Keywords: Migration; agglomeration economies; cities; artists
    JEL: J61 N30 Z11
    Date: 2019–02–19
  3. By: Lara Cockx
    Abstract: Do the returns to migration extend beyond migrants themselves and accrue to the children of migrants? Drawing upon data from a unique 19-year longitudinal survey from Tanzania, this paper empirically investigates this question by exploiting the variation in the outcomes of the children of migrants and the children of the migrants’ siblings who stayed behind conditional upon a range of individual characteristics of their parents. I show that parental migration has important implications for child development. This relation depends on the destination and the timing of the move. More specifically, children whose parents migrated from rural areas to cities are heavier, taller and more educated for their age. The effects on height and schooling are strongest for children who were exposed to the city environment during their early childhood. In contrast, children whose parents moved to a different rural village do not appear to experience any health advantage and those moving alongside their parents even start schooling at a later age. In addition to conferring a broader view of the returns to physical mobility, this analysis contributes to the debate on the origin of spatial inequalities in developing countries.
    Keywords: Internal migration, health, education
    JEL: R23 O15 I15 I25
    Date: 2019
  4. By: Wennström, Johan (Research Institute of Industrial Economics (IFN)); Öner, Özge (University of Cambridge, Department of Land Economy)
    Abstract: This study shows that in Sweden, contrary to other European countries, refugees have been disproportionately placed in peripheral and rural areas with high unemployment and rapid native depopulation where the prospects for integration, both socially and economically, are poor. We explore and evaluate some potential reasons for this outcome. Factors such as an intimidating political and intellectual climate in favor of receiving large numbers of asylum seekers and immigrants and the economic support given by the central government to municipalities that accept refugees are not sufficient to understand the actions of rural local governments. Instead, we argue that Tetlock’s seminal work on “expert political judgment” may provide a useful approach for understanding the seemingly irrational actions of local politicians in rural and peripheral municipalities.​
    Keywords: Immigration; Social capital; Political judgment; Rational choice; Urbanization
    JEL: J15 J61 O15 R58
    Date: 2019–02–26
  5. By: Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Öner, Özge (University of Cambridge, Department of Land Economy); Sanandaji, Tino (Institute for Economic and Business History Research)
    Abstract: The European Union officially proclaims to have a common refugee policy. However, the common treaties leave a great deal of discretion to the individual member countries, which allows them to regulate refugee migration while still upholding international treaties. Member countries have authority over border controls, the processing of asylum applications as well as economic benefits provided to refugees. We show that the differences in refugee flows are so extensive and systematic that the existence of a common EU refugee policy is debatable. The commitments made by the member countries are largely voluntary, and refugee policy is mainly determined at the national level. The discrepancies between the member countries strongly signal that the European Union may not be an optimal region for a common refugee policy. A refugee policy should instead be determined at the national level concordant with the regional and local level, where integration measures are implemented in practice. Meanwhile, the European Union can play an important role through refugee aid to afflicted countries, treaties with third countries, rescue actions in the Mediterranean and control of the external EU borders.
    Keywords: Asylum seekers; European Union; Migration policy; Refugee crisis; Schengen Agreement
    JEL: F22 F53 J61
    Date: 2019–02–26
  6. By: Alesina, Alberto F; Carlana, Michela; La Ferrara, Eliana; Pinotti, Paolo
    Abstract: If individuals become aware of their stereotypes, do they change their behavior? We study this question in the context of teachers' bias in grading immigrants and native children in middle schools. Teachers give lower grades to immigrant students compared to natives who have the same performance on standardized, blindly-graded tests. We then relate differences in grading to teachers' stereotypes, elicited through an Implicit Association Test (IAT). We find that math teachers with stronger stereotypes give lower grades to immigrants compared to natives with the same performance. Literature teachers do not differentially grade immigrants based on their own stereotypes. Finally, we share teachers' own IAT score with them, randomizing the timing of disclosure around the date on which they assign term grades. All teachers informed of their stereotypes before term grading increase grades assigned to immigrants. Revealing stereotypes may be a powerful intervention to decrease discrimination, but it may also induce a reaction from individuals who were not acting in a biased way.
    Keywords: bias in grading; IAT; immigrants; implicit stereotypes; teachers
    JEL: I24 J15
    Date: 2019–02
  7. By: Blaise Gnimassoun (Université de Lorraine); John Anyanwu (African Development Bank)
    Abstract: While the dominant collective belief asserts that brain drain is detrimental to the development of small economies, new studies hold the reverse view. This paper aims at studying the role of the African Diaspora in the economic development of Africa. It analyzes both the overall effect and the specific effect of emigration according to the level of education of emigrants. Then, through a deeper investigation, the paper analyzes the main channels through which the Diaspora influences economic development in Africa. The results show that the African Diaspora contributes positively, significantly and robustly to the improvement of real per capita income in Africa. These findings challenge the dominant collective belief since the higher the educational level of the emigrants, the greater the impact of the Diaspora on the level of economic development. Improvements in human capital, total factor productivity and democracy are effective transmission channels of this impact. Finally, the results show that while high-skilled emigrants have an overall greater impact on economic development and democracy, those with a low level of education contribute more to remittances to Africa. The establishment of an annual African Diaspora Summer School (ADSS) by the AfDB in partnership relevant international and regional stakeholders as a channel for the transfer of knowledge, technology and experience would further strengthen the role of the Diaspora in Africa’s economic development.Keywords: International migration, Economic development, Africa. JEL classification: F22, F63, O55
    Date: 2019–02–22
  8. By: Entorf, Horst; Lange, Martin
    Abstract: In this article, we examine anti-foreigner hate crime in the wake of the large influx of asylum seekers to Germany in 2014 and 2015. By exploiting the quasi-experimental assignment of asylum seekers to German regions, we estimate the causal effect of an unexpected and sudden change in the share of the foreign-born population on anti-foreigner hate crime. Our county-level analysis shows that not simply the size of regional asylum seeker infl ows drives the increase in hate crime, but the rapid compositional change of the residential population: Areas with previously low shares of foreign-born inhabitants that face large-scale immigration of asylum seekers witness the strongest upsurge in hate crime. Economically deprived regions and regions with a legacy of anti-foreigner hate crimes are also found to be prone to hate crime against refugees. However, when we explicitly control for East-West German differences, the predominance of native-born residents at the local level stands out as the single most important factor explaining the sudden increase in hate crime.
    Keywords: hate crime,immigration,natural experiment,regional conditions
    JEL: J15 R23 K42
    Date: 2019
  9. By: Syed Hasan (School of Economics and Finance, Massey University, Palmerston North); Nazmun Ratna (Faculty of Agribusiness and Commerce, Lincoln University, Canterbury, New Zealand); Shamim Shakur (School of Economics and Finance, Massey University, Palmerston North, New Zealand)
    Abstract: We examined the impact of the depreciation of the Australian dollar (AU$) during 2013-2015 onthe expenditure of households with foreign-born members (HFBMs) in Australia. Employing the difference-in-differences method and 2013-2015 Nielson Homescan Panel Survey data, we found that HFBMs spent around 2.4 percent more on their food expenditure in 2014 and 4.0 percentmore in 2015 compared to their native counterparts. Further investigation indicated that neither incomes nor food prices nor the expenditures on imported food items changed differently for any group in that period, while an analysis with HILDA survey data indicates a similar pattern fortotal expenditures. With reduced outward aggregate remittances from Australia over the sametime, we argue that falling AU$ induces HFBMs to substitute for consumption in the homecountry with that in the host nation. Our empirical results provide fresh insights on how changesin the exchange rate may affect immigrants differently than natives.
    Keywords: Australia, exchange rate, immigrant, consumption
    JEL: D12 D60 I30 Z13 Z18
    Date: 2019
  10. By: Michael A. Clemens (Center for Global Development; IZA)
    Abstract: ‘Guest workers’ earn higher wages overseas on temporary low-skill employment visas. This wage effect can quantify global inefficiencies in the pure spatial allocation of labor between poorer and richer countries. But rigorous estimates are rare, complicated by migrant self-selection. This paper tests the effects of guest work on Indian applicants to a construction job in the United Arab Emirates, where a crisis exogenously influenced job placement. Guest work raised the return to labor by a factor of four, implying large spatial inefficiency. Short-term effects on households were modest. Effects on information, debt, and later migration were incompatible with systematic fraud.
    Keywords: income, human capital, migration, labor, mobility, guest work, india, gulf, construction, worker, selection, migrant, temporary, visa, wage, education, crisis, low-skill, unskilled, credit, exploited, naive, regret, slavery, trafficking, debt, coerced, cheated
    JEL: F22 J6 O12 O16 O19
    Date: 2019–01–31
  11. By: Aaron Levi Garavito-Acosta (Banco de la República de Colombia); Maria Mercedes Collazos-Gaitan (Banco de la República de Colombia); Manuel Dario Hernandez-Bejarano (Banco de la República de Colombia); Enrique Montes-Uribe (Banco de la República de Colombia)
    Abstract: Esta investigación contribuye a la identificación, caracterización y modelación de los determinantes de las remesas de trabajadores en Colombia. Incluye una descripción de la evolución y características del flujo migratorio de colombianos hacia el exterior y de los receptores de éstas transferencias en el país. El análisis de los determinantes macroeconómicos de las remesas se realiza mediante la estimación de un modelo VEC, el cual considera, además de las remesas, el stock de migrantes colombianos en el exterior y algunos agregados macroeconómicos que permiten aproximar las variables de decisión del migrante para el envío de recursos a su país de origen. Los resultados del modelo muestran que las remesas se ven favorecidas por el desempeño del PIB de los países donde residen los migrantes, así como por el aumento de la emigración de nacionales hacia el exterior. A su vez, permiten concluir que estas transferencias son contracíclicas con respecto al PIB de Colombia. **** ABSTRACT: This paper is a contribution to the process of identifying, characterizing and modeling the determinants of workers' remittances for the case of Colombia. It also includes a description of the evolution of the migratory flow of Colombians abroad and of the remittances recipient’s households. Remittances determinants are explained by using a VEC model that includes, in addition to the remittances inflows, the stock of Colombian migrants abroad and some macroeconomic aggregates that are thought to approximate the variables that influence the migrant's decision to send money to their families. According to the econometric results, Colombian workers remittances inflows are determined by the performance of the GDP of the countries where the migrants live, as well as by the increase in the international emigration of Colombians. In addition, these transfers show a countercyclical behavior against the Colombian GDP.
    Keywords: Remesas de trabajadores, migración internacional, vector de corrección de errores, balanza de pagos, workers´ remittances, international migration, vector error correction model, balance of payments
    JEL: F24 J61 F00 C22
    Date: 2019–03

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