nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2019‒07‒29
three papers chosen by
Yuji Tamura
La Trobe University

  1. Reform of the Personal Income Tax in Spain: Effects on internal mobility of the unemployed By González-Chapela, Jorge; Ortega-Lapiedra, Raquel
  2. Direct and indirect impacts of liberal immigration policies on the inflow of multinationals in the U.S. By Shin, Geiguen
  3. Do Immigrants Affect Crime? Evidence from Panel Data for Germany By Rita Maghularia; Silke Uebelmesser

  1. By: González-Chapela, Jorge; Ortega-Lapiedra, Raquel
    Abstract: This paper examines whether, and to what extent, the internal mobility of the unemployed in Spain was affected by a reform of the personal income tax that introduced a mobility incentive targeted at this group. The reform introduced a distinct change in the incentives to move for work for unemployed workers living in certain regions of Spain. The reform’s effectiveness is assessed by means of a difference-in-differences econometric approach, combined with nationally representative administrative data. Results suggest that the reform led, at most, to relatively few new migration flows, and account for the existence of differential migration trends between the regions that adopted the reform and those that did not.
    Keywords: Personal income tax, mobility, unemployed, Spain
    JEL: H24 J61 R23
    Date: 2019–07–23
  2. By: Shin, Geiguen
    Abstract: Many studies suggest that stringent labor protection and higher labor costs in host countries can limit foreign direct investment. This implies that foreign firms are sensitive to the flexibility of the labor market in the U.S. The U.S. has experienced increasing immigrants, which have preserved the stable labor supply in the U.S. market. The U.S. is a good case to test the relationship between immigration and FDI because the U.S. is not only the largest host and home country of FDI but also the country that has one of the highest immigrant populations and experiences a significant reduction in labor supply and an increase in the minimum cost of labor. Utilizing a time-series analysis from 1970 to 2016, this study suggests that the expansive immigration policies directly increase FDI inflows in the U.S., and indirectly increase FDI inflows throughout lowering potential labor costs and securing a stable labor supply.
    Keywords: foreign direct investment,immigration policy,labor cost
    JEL: F16 J15
    Date: 2019
  3. By: Rita Maghularia; Silke Uebelmesser
    Abstract: The paper analyses the empirical relationship between immigrants and crime using panel data for 391 German administrative districts between 2003 and 2016. Employing different standard panel estimation methods, we show that there is no positive association between the immigrant rate and the crime rate. We assess the robustness of this result by considering the heterogeneity of immigrant groups with respect to gender, age, country of origin and – if applicable – refugee status, and study naturalized immigrants. We also take into account possible spillover effects of immigrants on criminal activities by Germans, omitted variables and spatial correlation. Furthermore, taking advantage of the panel-structure of the data set we employ an instrumental variable approach that deals with the possibly endogenous allocation of immigrants and allows for causal interpretation of the estimates. There is no evidence that immigrants increase crime.
    Keywords: immigrants, crime, Germany, panel data, IV approach
    JEL: F22 J15 K42 R10
    Date: 2019

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