nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2019‒12‒23
eight papers chosen by
Yuji Tamura
La Trobe University

  1. Talents from Abroad. Foreign Managers and Productivity in the United Kingdom. By Dimitrios Exadactylos; Massimo Riccaboni; Armando Rungi
  2. Interaction of emigration and immigration with foreign direct investment, international trade and remittances By Mihi-Ramirez, Antonio; Sobierajc, Janusz; Garcia-Rodriguez, Yolanda
  3. Immigration in Emerging Countries: A Macroeconomic Perspective By Agustín Arias; Juan Guerra-Salas
  4. Peer effects in stock market participation: evidence from immigration By Girshina, Anastasia; Mathä, Thomas Y.; Ziegelmeyer, Michael
  5. Factors associated with attitudes toward U.S. immigration, 2004–2016 By Amaral, Ernesto F. L.; Mitchell, Paige; Marquez-Velarde, Guadalupe
  6. The Legacy of Historical Emigration: Evidence from Italian Municipalities By Erminia Florio
  7. Migrants, towns, poverty and jobs: insights from Tanzania By Luc Christiaensen; Joachim De Weerdt; Bert Ingelaere; Ravi Kanbur
  8. "Wage Differential between Palestinian Non-refugees and Palestinian Refugees in the West Bank and Gaza" By Sameh Hallaq

  1. By: Dimitrios Exadactylos (IMT School for advanced studies); Massimo Riccaboni (IMT School for advanced studies); Armando Rungi (IMT School for advanced studies)
    Abstract: In this paper, we test the contribution of foreign management on firms competitiveness. We use a novel dataset on the careers of 165,084 managers employed by 13,106 companies in the United Kingdom in the period 2009-2017. We find that a domestic manufacturing firm becomes on average between 9% and 12% more productive after hiring at least one foreign manager. Interestingly, productivity gains by domestic firms after recruiting foreign managers are similar in magnitude to gains after foreign acquisitions as from previous literature. Eventually, we do not find significant gains by foreign-owned firms hiring foreign managers. Our identification strategy combines difference-in-difference and matching techniques to challenge reverse causality. We proxy firms competitiveness either by total factor productivity or by technical efficiency derived from stochastic frontier analyses. Eventually, we argue that limits to the circulation of talents, as for example in case of a Brexit event, may hamper the allocation of labor productive resources.
    Keywords: managers; productivity; job mobility; spillovers; multinational enterprises; migration
    JEL: F22 F23 L23 L25 J61 M11
    Date: 2019–12
  2. By: Mihi-Ramirez, Antonio; Sobierajc, Janusz; Garcia-Rodriguez, Yolanda
    Abstract: This paper studies the international mobility of capital and labour. Using a Mixed Linear Model (MMA) the authors analyse the interaction of emigration and immigration with foreign direct investment, exports and imports, and international remittances. The sample comprises 112 countries with which Spain has closely interconnected migratory, commercial and investment exchanges, and they focus both on the period prior to the great recession, 1998-2007, and on the subsequent period, 2008-2016. The results show that a greater number of immigrants in Spain boost foreign direct investment (FDI), remittances sent and received and Spanish imports andexports to the immigrants' countries of origin. In contrast to what was often stated in the classicalapproaches, this relationship is maintained in the long term and also has effects on emigration. Thus, an inverse relationship of emigration from Spain with the FDI and remittances sent is confirmed. With the economic downturn, the FDI declines and the number of migrants from Spainand remittances received began to increase. In a sense, FDI and migration could also be seen as a kind of risk aversion strategy. In fact, when looking at the behaviour of these variables together across a wide sample of countries and years, it is observed that immigration and emigration act as two sides of the same coin. The results lead the authors to recommend those strategies and policiesthat serve to take advantage of and promote the interaction of mobility factors, since it allows diversifying risks of companies and workers and finding new commercial and investment opportunities.
    Keywords: emigration,immigration,foreign direct investment,exports,imports,remittances,linear mixed model
    JEL: F10 F21 F22 F24
    Date: 2019
  3. By: Agustín Arias; Juan Guerra-Salas
    Abstract: Roughly one third of migrants worldwide reside in developing countries, yet most papers on the macroeconomiceffects of immigration focus on advanced economies. We investigate the medium- and long-term effects of immigration in an emerging country, considering a salient feature of this type of economies: the importance of labor informality. We build an overlapping generations model featuring 24 cohorts, an informal sector, and households with heterogeneous skill levels, among other features, that help us match key demographic and economic characteristics of Chile, an emerging country that has recently experienced an important immigration wave. An immigration wave increases the supply of labor, creating downward pressure on wages in the formal sector. Workers respond by reallocating labor effort to the informal sector, which allows them to mitigate the decline in consumption per worker triggered by lower formal-sector wages. Our model, thus, constitutes a framework for the quantitative analysis of immigration in emerging countries.
    Date: 2019–11
  4. By: Girshina, Anastasia; Mathä, Thomas Y.; Ziegelmeyer, Michael
    Abstract: This paper studies how peers’ financial behaviour affects individuals’ own investment choices. To identify the peer effect, we exploit the unique composition of the Luxembourg population and use the differences in stock market participation across various immigrant groups to study how they affect stock market participation of natives. We solve the reflection problem by instrumenting immigrants’ stock market participation with lagged participation rates in their countries of birth. We separate the peer effect from the contextual and correlated effects by controlling for neighbourhood and individual characteristics. We find that stock market participation of immigrant peers has sizeable effects on that of natives. We also provide evidence that social learning is one of the channels through which the peer effect is transmitted. However, social learning alone does not account for the entire effect and we conclude that social utility might also play an important role in peer effects transmission. JEL Classification: G5, D14, D83, G11, I22
    Keywords: peer effects, social learning, social utility, stock market participation
    Date: 2019–12
  5. By: Amaral, Ernesto F. L. (Texas A&M University); Mitchell, Paige; Marquez-Velarde, Guadalupe
    Abstract: This study investigates demographic, socioeconomic, political, and contextual factors associated with attitudes toward U.S. immigration. We analyze cross-sectional data from the 2004–2016 General Social Survey and American Community Survey five-year estimates. Results from generalized ordered logit models suggest that support to immigration has been increasing over time. There is no difference by sex on attitudes toward immigration. Non-whites, those between 18 and 24 years of age, people with higher educational attainment, and non-Protestants are more likely to be pro-immigration. People working on sales, office, natural resources, construction, maintenance, production, transportation, material moving, and military occupations are less likely to support immigration. People living in the South Atlantic region are the least likely to support an increase in immigration. People who lived in areas at the age of 16 that tend to have higher proportions of foreign-born individuals are more likely to support immigration. People who self-classify as strong Democrats, Independents near Democrats, and in other parties are more likely to be in favor of an increase on the number of immigrants. People with more liberal political views are more likely to be in favor of immigration. People with lower levels of racial resentment have higher chances to be in favor of an increase in immigration. Opinion about immigration has stronger associations with racial resentment than with opinion about U.S. economic achievement. People who live in counties with higher proportions of college graduates and higher proportions of immigrants are more likely to be pro-immigration.
    Date: 2019–02–22
  6. By: Erminia Florio (University of Rome "Tor Vergata")
    Abstract: I analyze the effect of historical emigration on today’s attitudes towards immigration in Italy. To do so, I collect data on Italian emigrants by municipality from the Ellis Island archives in the period 1892-1924. I estimate, then, the causal effect of emigration on a series of outcomes used to measure attitudes towards immigrants through an IV strategy, by exploiting exogenous variation in proximity to train stations active during years 1892-1924 and in the timing of construction of stations to historical emigration. I find that emigration has a negative and significant long-run effect on attitudes towards immigration. In particular, a one-standard deviation increase in the share of past emigrants reduces the propensity to have a SPRAR in municipalities by roughly 9%. A higher historical emigration also reduces social expenditures, share of votes for center-left parties and non-profit organizations, while increasing the share of votes for center-right parties.
    Keywords: Italian Emigration; Attitudes towards Immigration; Age of Mass Migration.
    JEL: J15 N32 N34 Z1
    Date: 2019–12–16
  7. By: Luc Christiaensen; Joachim De Weerdt; Bert Ingelaere; Ravi Kanbur
    Abstract: For a long time, the urbanization and development discourse has coincided with a focus on economic growth and big cities. Yet, much of the world’s new urbanization is taking place in smaller urban entities (towns), and the composition of urbanization may well bear on the speed of poverty reduction. This paper reviews the latter question within the context of Tanzania. It starts from the observation that migration to towns contributed much more to poverty reduction than migration to cities because many more (poor) rural migrants ended up in Tanzania’s towns than its cities, despite larger welfare gains from moving to the city. Drawing on the findings from a series of studies, looking at this from different angles (theoretical and empirical, quantitative and qualitative), the paper shows how towns are better at enabling the rural poor to access off-farm employment and exit poverty because they are more nearby. It concludes with a call for greater consideration of the role of towns in accelerating Africa’s poverty reduction.
    Keywords: migration, urbanization, secondary town, jobs, poverty, life history
    Date: 2018–02
  8. By: Sameh Hallaq
    Abstract: This paper measures the wage differential between Palestinian non-refugees and Palestinian refugees in the West Bank and Gaza over the years 1999-2012. First, the main individual and occupational differences between the two groups in the two regions are presented. Then, the wage differential is decomposed into two components: a "human capital effect, explained part" and a "coefficient effect, unexplained part." Second, findings suggest that though the wage gap has always existed and favored non-refugees in the West Bank, it has a more substantial impact among low-skilled workers and those in the private sector. Furthermore, most of this gap is attributed to the unexplained part of the wage decomposition model. In Gaza, the wage gap favored refugee workers. Most of this wage gap among unskilled workers is attributed to the endowment/human capital effect, while for skilled workers most of the wage gap is due to the unexplained part--the "coefficient effect"--after 2006.
    Keywords: West Bank; Gaza Strip; Wage Differential; Refugees
    JEL: J31 J71
    Date: 2019–12

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