nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2019‒03‒18
fourteen papers chosen by
Yuji Tamura
La Trobe University

  1. Risky Working Conditions: An Immigrant Trap or an Income Effect? By Eva Moreno-Galbis
  2. Immigrant Naturalisation, Employment and Occupational Status in Western Europe By Rezart Hoxhaj; Maarten Vink; Tijana Prokic-Breuer
  3. Female genital mutilation and migration in Mali. Do return migrants transfer social norms? By Diabate, Idrissa; Mesplé-Somps, Sandrine
  4. Characterization of the Recent Immigration to Chile By Rosario Aldunate; Gabriela Contreras; Claudia De la Huerta; Matías Tapia
  5. Immigrants' Earnings Growth and Return Migration from the U.S.: Examining their Determinants using Linked Survey and Administrative Data By Randall Akee; Maggie R. Jones
  7. Fiscal Austerity and Migration: A Missing Link By Guillherme Bandeira; Jordi Caballé; Eugenia Vella
  8. Free Movement, Open Borders and the Global Gains from Labor Mobility By Christian Dustmann; Ian Preston
  9. Exchange rate, remittances and expenditure of foreign-born households: evidence from Australia By Hasan, Syed; Ratna, Nazmun; Shakur, Shamim
  10. Walls and Fences: A Journey Through History and Economics By Vernon, Victoria; Zimmermann, Klaus F.
  11. Linguistic diversity in the classroom, student achievement, and social integration By Bredtmann, Julia; Otten, Sebastian; Vonnahme, Christina
  13. On the macroeconomic effects of immigration: A VAR analysis for the US By Weiske, Sebastian
  14. Políticas migratórias em nível local: Análise sobre a institucionalização da política municipal para a população imigrante de São Paulo By Sampaio, Cyntia; Baraldi, Camila

  1. By: Eva Moreno-Galbis (Aix-Marseille Univ., CNRS, EHESS, Centrale Marseille, AMSE & Institut Universitaire de France)
    Abstract: Immigrants’ income has been proved to converge to the average native income level with years of residence in the host country. This income assimilation effect is surprisingly not associated with a health improvement. Some emerging studies point towards the role of working conditions as a driver of the counterfactual relation between immigrants’ health and income. Using French data, we first show that, consistently with Viscusi (1978), working conditions are a normal good. An increase in 10% in non-earned income is associated with a decrease by 0.85% in professional injuries and by more than 3.2% in disabilities induced by professional illnesses. Second, we find that while immigrants bear in average worse working conditions than natives, this divergence results from an income divergence effect since for an equivalent non-earned income level there are no significant differences in working conditions between natives and immigrants. Income assimilation of immigrants is associated with an assimilation in working conditions. We conclude then that bad working conditions cannot be blamed for the degradation of immigrants’ health with years of residence in the host country.
    Keywords: immigrants, working conditions, income
    JEL: A14 J15 J61 J81
    Date: 2019–02
  2. By: Rezart Hoxhaj; Maarten Vink; Tijana Prokic-Breuer
    Abstract: Does citizenship facilitate access to employment and higher status jobs? Existing case studies have produced mixed results across mostly single case studies in Europe and North America. To investigate whether this heterogeneity depends on varying institutional and socio-economic conditions, in this paper we analyse the labour market outcomes of immigrants who have naturalised in 13 West European countries. Our empirical analysis draws on data from the 2014 European Labour Force Survey Ad Hoc Module on immigrants. In order to cope with the selective nature of the naturalisation process, we employ a bivariate probit model that accounts for unobserved characteristics of naturalising immigrants. Our main results show a positive relationship across these destination countries between citizenship and the probability of employment for both immigrant men and women, as well as between citizenship and occupational status for men. Liberalising the access to citizenship does not diminish the positive returns on employment from naturalisation. For immigrant men there is evidence of a trade-off between easier access to citizenship and the returns on occupational status.
    Keywords: Citizenship, Employment, Job status, Western Europe
    JEL: J15 J61
    Date: 2019–02
  3. By: Diabate, Idrissa; Mesplé-Somps, Sandrine
    Abstract: In this paper, we investigate the power of migration as a mechanism in the transmission of social norms, taking Mali and Female Genital Mutilation (FGM) as a case study. Mali has a strong FGM culture and a long-standing history of migration. We use an original household-level database coupled with census data to analyze the extent to which girls living in localities with high rates of return migrants are less prone to FGM. Malians migrate predominantly to other African countries where female circumcision is uncommon (e.g. Côte d’Ivoire) and to countries where FGM is totally banned (France and other developed countries) and where anti-FGM information campaigns frequently target African migrants. Taking a two-step instrumental variable approach to control for the endogeneity of migration and return decisions, we show that return migrants have a negative and significant influence on FGM practices. More precisely, we show that this result is primarily driven by the flow of returnees from Cote d'Ivoire. We also show that adults living in localities with return migrants are more informed about FGM and in favor of legislation. The impact of returnees may occur through several channels, including compositional effects, changes in return migrants' attitudes toward FGM, and return migrants convincing stayers to change their FGM practices.
    Keywords: Female Genital Excision,social transfers,migration,Mali
    JEL: I15 O55 F22
    Date: 2019
  4. By: Rosario Aldunate; Gabriela Contreras; Claudia De la Huerta; Matías Tapia
    Abstract: This paper documents the rapid increase in immigration to Chile experienced in the past few years. Our main purpose is to characterize the immigrant population and to analyze their assimilation into the local labor market. We find that immigrants are on average younger than the native-born and have higher labor force participation rates, revealing that foreign-born population in Chile comprises mostly of economic migrants. We also find that foreign-born are distributed across all skill levels, unlike other countries that have received larger shares of low-skilled immigrants. However, most of the foreign-born are overqualified for the jobs they hold despite being on overage more educated than the native-born. Even though immigrants face an adjustment period upon arrival into the country, their unemployment rate does not differ substantially from that of the native-born. Additionally, foreign-born and native-born have a similar distribution of employment across economic sectors, employment status and informality. We conclude that immigrants have integrated well into the labor market, suggesting immigration could be a factor contributing to long term economic growth in Chile.
    Date: 2019–01
  5. By: Randall Akee; Maggie R. Jones
    Abstract: Using a novel panel data set of recent immigrants to the U.S. (2005-2007) from individual-level linked U.S. Census Bureau survey data and Internal Revenue Service (IRS) administrative records, we identify the determinants of return migration and earnings growth for this immigrant arrival cohort. We show that by 10 years after arrival almost 40 percent have return migrated. Our analysis examines these flows by educational attainment, country of birth, and English language ability separately for each gender. We show, for the first time, that return migrants experience downward earnings mobility over two to three years prior to their return migration. This finding suggests that economic shocks are closely related to emigration decisions; time-variant unobserved characteristics may be more important in determining out-migration than previously known. We also show that wage assimilation with native-born populations occurs fairly quickly; after 10 years there is strong convergence in earnings by several characteristics. Finally, we confirm that the use of stock-based panel data lead to estimates of slower earnings growth than is found using repeated cross-section data. However, we also show, using selection-correction methods in our panel data, that stock-based panel data may understate the rate of earnings growth for the initial immigrant arrival cohort when emigration is not accounted for.
    Keywords: Return Migration, Immigration, Human Capital, Wage Growth, Race, Panel Data.
    JEL: J31 F22 J61 J15
    Date: 2019–03
  6. By: Manuela Stranges (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); François-Charles Wolff (LEMNA, Université de Nantes, Paris, France)
    Abstract: This paper investigates the trajectories of young migrants arriving in Italy by sea by means of unique data from a centre for reception of refugees and asylum seekers located in the southern region of Calabria during the period 2009-2014. We focus on the influence of family relationships at entry. We find that the length of stay is nearly five times higher for minors who entered in the centre with family than for those arrived alone. More than one-half of minors choose to leave the centre voluntarily and around a quarter are transferred to other places. A multivariate analysis shows that family status is very influential when explaining time spent in the centre. There is substantial heterogeneity in exit motives depending on the minors’ country of origin. Overall, our results raise the issue of the effectiveness of the whole asylum system in Europe since the massive early departures of minors from the centre may suggest that Italy is not their intended destination.
    Keywords: migrants, minors, refugees, refugee centre, administrative data, Italy
    JEL: O15 F22 N3
    Date: 2019–03
  7. By: Guillherme Bandeira; Jordi Caballé; Eugenia Vella
    Abstract: In this paper we propose a new channel through which fiscal austerity affects the macroeconomy. To this end, we introduce endogenous migration both for the unemployed and the employed members of the household in a small open economy New Keynesian model with labour market frictions. Our model-based simulations for the austerity mix implemented in Greece over the period 2010-2015 show that the model is able to match the total size of half a million emigrants and output drop of 25%, while the model without migration generates an output drop of 20%. Having established that the model delivers empirically plausible results, we then use it to investigate (i) the two-way relation between migration and austerity, and (ii) the role of migration as shock absorber. We find that tax hikes induce prolonged migration outflows, while the effect of spending cuts is hump-shaped. In turn, emigration implies an increase in both the tax hike and time required to achieve a given size of debt reduction. As a result of the labour-reducing effect of these higher tax hikes, the unemployment gains from migration are only temporary in the presence of austerity and are substantially reversed over time.
    Keywords: fiscal consolidation, Migration, matching frictions, on-the-job search
    JEL: E32 F41
    Date: 2019–03
  8. By: Christian Dustmann (University College London, Department of Economics and CReAM); Ian Preston (Department of Economics, University College London and CReAM)
    Abstract: Straightforward economic arguments point to the potential for large global output gains from movement of labor from less to more productive locations. Yet the politics of receiving countries seems resistant, characterized rather by efforts to limit migration, or to stop it altogether. In this paper we examine the foundations of claims of large welfare gains through free mobility, studying implications of liberalizing migration for world welfare under a variety of models, paying attention not only to overall gains but also to how gains are distributed, and reviewing attempts to quantify the benefits. We conclude by asking how far considerations beyond economics motivate keenness to impose restrictions on migration.
    Date: 2019–03
  9. By: Hasan, Syed; Ratna, Nazmun; Shakur, Shamim
    Abstract: We examined the impact of the depreciation of the Australian dollar (AU$) during 2013-2015 on the expenditure of households with foreign-born members (HFBMs) in Australia. Employing the difference-in-differences method and 2013-2015 Nielson Homescan Panel Survey data, we found that HFBMs spent around 2.4 percent more on their food expenditure in 2014 and 4.0 percent more in 2015 compared to their native counterparts. Further investigation indicated that neither incomes nor food prices nor the expenditures on imported food items changed differently for any group in that period, while an analysis with HILDA survey data indicates a similar pattern for total expenditures. With reduced outward aggregate remittances from Australia over the same time, we argue that falling AU$ induces HFBMs to substitute for consumption in the home country with that in the host nation. Our empirical results provide fresh insights on how changes in 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: Vernon, Victoria; Zimmermann, Klaus F.
    Abstract: Throughout history, border walls and fences have been built for defense, to claim land, to signal power, and to control migration. The costs of fortifications are large while the benefits are questionable. The recent trend of building walls and fences signals a paradox: In spite of the anti-immigration rhetoric of policymakers, there is little evidence that walls are effective in reducing terrorism, migration, and smuggling. Economic research suggests large benefits to open border policies in the face of increasing global migration pressures. Less restrictive migration policies should be accompanied by institutional changes aimed at increasing growth, improving security and reducing income inequality in poorer countries.
    Keywords: Walls,fences,defense,security,international migration,mobility
    JEL: F22 H56 J61 N4
    Date: 2019
  11. By: Bredtmann, Julia; Otten, Sebastian; Vonnahme, Christina
    Abstract: In this article, we analyze whether non-native speakers in the classroom affect the educational achievement and social integration of migrant and native students. In contrast to previous studies, which mainly examine the effect of the share of immigrant pupils, we focus on language heterogeneity by using a novel measure of the degree of linguistic diversity in the classroom. Our analysis is based on a comprehensive survey of 4th-grade students in German primary schools, which contains detailed information on students' language and math scores, their social integration, as well as on sociodemographic and school characteristics. We find a negative association between the share of non-native speakers in the classroom and students' test scores and their social integration in the class. Conditional on the immigrant concentration in the class, the degree of linguistic diversity has no adverse effect on students' language and math skills, but worsens the social integration of immigrant students. We demonstrate the robustness of these findings in a variety of robustness checks.
    Keywords: linguistic diversity,educational performance,social integration,migrant peer effects
    JEL: I21 I24 J15
    Date: 2018
  12. By: J. David Brown; John S. Earle; Mee Jung Kim; Kyung Min Lee
    Abstract: We estimate differences in innovation behavior between foreign versus U.S.-born entrepreneurs in high-tech industries. Our data come from the Annual Survey of Entrepreneurs, a random sample of firms with detailed information on owner characteristics and innovation activities. We find uniformly higher rates of innovation in immigrant-owned firms for 15 of 16 different innovation measures; the only exception is for copyright/trademark. The immigrant advantage holds for older firms as well as for recent start-ups and for every level of the entrepreneur’s education. The size of the estimated immigrant-native differences in product and process innovation activities rises with detailed controls for demographic and human capital characteristics but falls for R&D and patenting. Controlling for finance, motivations, and industry reduces all coefficients, but for most measures and specifications immigrants are estimated to have a sizable advantage in innovation.
    Date: 2019–02
  13. By: Weiske, Sebastian
    Abstract: This paper estimates the quarterly flow of migrants to the US working age population using data based on the Current Population Survey (CPS). The dynamic responses to immigration shocks are estimated in a vector autoregression. Immigration shocks, as well as technology shocks are identified through long-run restrictions. The responses to immigration shocks are consistent with standard growth theory. Investment increases, while real wages fall in the short run. Overall, immigration has been of little importance for US business cycles, while investment-specific technology shocks have been a major driver of immigration during the 1990s and 2000s.
    Keywords: immigration,business cycles,vector autoregressions,long-run restrictions
    JEL: E32 F22 J11 J61
    Date: 2019
  14. By: Sampaio, Cyntia; Baraldi, Camila
    Abstract: A cidade de São Paulo possui uma longa tradição de acolhida e tem sido historicamente reconhecida por seu multiculturalismo e capacidade de integrar diversos povos. Em 2013 foi criada a Coordenação de Políticas para Migrantes (CPMig) no marco da Secretaria Municipal de Direitos Humanos e Cidadania (SMDHC) da Prefeitura Municipal de São Paulo, concretizando assim um compromisso de campanha assumido após intensa articulação dos atores sociais e das pessoas em situação de migração e refúgio que vivem na cidade. Em pouco tempo, a Política Municipal para a População Imigrante (PMPI) virou referência, em especial pelo protagonismo do gestor público local em defender uma pauta tradicionalmente vinculada aos Estados nacionais, bem como sua modalidade de trabalho e os resultados alcançados. Ao longo do período analisado (2013 a 2017), buscouse identificar os elementos que contribuíram para a instalação da PMPI utilizando o marco teórico da institucionalidade social adotado pela CEPAL, bem como apontar possíveis caminhos para seu fortalecimento. O documento está pautado pelo compromisso em produzir conhecimento sobre as políticas públicas que englobam migração internacional e inclusão social sob a ótica do respeito aos direitos das pessoas migrantes e refugiadas.
    Date: 2019–03–06

This nep-mig issue is ©2019 by Yuji Tamura. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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