nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2020‒01‒27
fifteen papers chosen by
Yuji Tamura
La Trobe University

  1. The effect of migrants' resource endowments on business performance By Schlepphorst, Susanne; Kay, Rosemarie; Nielen, Sebastian
  2. Enfranchising Foreigners: What Drives Natives’ Willingness to Share Power? By Anna Maria Koukal; Reiner Eichenberger; Patricia Schafera
  3. Who Signs up for E-Verify? Insights from DHS Enrollment Records By Pia M. Orrenius; Madeline Zavodny; Sarah Greer
  4. The Links between Climate Change, Disasters, Migration, and Social Resilience in Asia: A Literature Review By Ober, Kayly
  5. Labor Migrants as Political Leverage: Migration Interdependence and Coercion in the Mediterranean By Tsourapas, Gerasimos
  6. The heterogeneous employment outcomes of first- and second-generation immigrants in Belgium By Céline Piton; François Rycx
  7. A rapid needs assessment among the Rohingya and host communities in Cox’s Bazar, Bangladesh: a randomized survey By Bhatia, Abhishek; Mahmud, Ayesha; Fuller, Arlan; Shin, Rebecca; Morshed, K.A.M; Rahman, Azad; Shatil, Tanvir; Sultana, Mahmuda; Balsari, Satchit; Leaning, Jennifer
  8. Immigration and the U.S. Labor Market: A Look Ahead By Holzer, Harry J.
  9. International Migration in Asia and the Pacific: Determinants and Role of Economic Integration By Kikkawa-Takenaka, Aiko; Gaspar, Raymond; Park, Cyn-Young
  10. Migration and the Location of MNEs Activities. Evidence from Italian Provinces By Luigi Benfratello; Davide Castellani; Anna D’Ambrosio
  11. Effect of Immigration on Depression among Older Natives in Western Europe By Escarce, José J.; Rocco, Lorenzo
  12. Fear and Loathing on the Campaign Trail: Did Immigration Cause Brexit? By Max Viskanic
  13. Targeted Cash Transfers, Credit Constraints, and Ethnic Migration in the People’s Republic of China By Howell, Anthony
  14. How do Migrants Turn Out to Be Extremists? Theoretical Models for a Sociological Analysis of Inclusion and Social Exclusion of Transnational Migrants in Everyday Life By Andrey V. Rezaev; Pavel P. Lisitsyn; Alexander M. Stepanov
  15. Hub-Periphery Development Pattern and Inclusive Growth: Case Study of Guangdong Province By Xubei Luo; Nong Zhu

  1. By: Schlepphorst, Susanne; Kay, Rosemarie; Nielen, Sebastian
    Abstract: This paper questions the stereotypical image of migrant-led companies as being less successful than native-led businesses. While facing similar framework conditions, migrant-led businesses are supposed to differ from native-led businesses in terms of their social capital endowment. In its function, social capital helps to mobilise further resources in form of human and financial resources. Each form of capital can have an effect on business performance, both directly as well as indirectly through its influence on the business' innovativeness. That is, social, human and financial resources can enhance the development and exploitation of business ideas. To test these relationships we apply a mediation model. Using data of migrant- and non-migrant-led businesses, we indeed find slight differences in their social capital resource endowments. These differences, however, do not result in performance differences between migrant- and native-led businesses.
    Keywords: migrant entrepreneurship,social capital,performance,mediation model
    JEL: J15 L25 L26
    Date: 2019
  2. By: Anna Maria Koukal; Reiner Eichenberger; Patricia Schafera
    Abstract: Universal suffrage is a core element for the functioning of democracy. However, with growing international mobility, an increasing share of the resident population has no suffrage. This paper analyzes the conditions under which domestic citizens are willing to extend suffrage to foreign residents. We explore a new municipality level dataset of 35 Swiss referenda on the enfranchisement of foreigners at the cantonal level. The Swiss setting provides a unique laboratory for capturing the drivers of the enfranchisement of foreigners, as it allows for measuring the actual native electorate’s revealed preferences. We find evidence that perceived cultural and economic threats hinder the enfranchisement of foreigners.
    Keywords: foreigners’ voting rights; political integration; threat hypothesis; democratization
    JEL: D72 J15 P16
    Date: 2019–12
  3. By: Pia M. Orrenius; Madeline Zavodny; Sarah Greer
    Abstract: E-Verify is a federal electronic verification system that allows employers to check whether their newly hired workers are authorized to work in the United States. To use E-Verify, firms first must enroll with the Department of Homeland Security (DHS). Participation is voluntary for most private-sector employers in the United States, but eight states currently require all or most employers to use E-Verify. This article uses confidential data from DHS to examine patterns of employer enrollment in E-Verify. The results indicate that employers are much more likely to sign up in mandatory E-Verify states than in states without such mandates, but enrollment is still below 50 percent in states that require its use. Large employers are far more likely to sign up than small employers. In addition, employers are more likely to newly enroll in E-Verify when a state’s unemployment rate or population share of likely unauthorized immigrants rises. However, enrollment rates are lower in industries with higher shares of unauthorized workers. Taken as a whole, the results suggest that enrolling in the program is costly for employers in terms of both compliance and difficulty in hiring workers. A strictly enforced nationwide mandate that all employers use an employment eligibility program like E-Verify would be incompatible with the current reliance on a large unauthorized workforce. Allowing more workers to enter legally or legalizing existing workers might be necessary before implementing E-Verify nationally.
    Keywords: Illegal immigration; unauthorized workers; E-Verify; worksite enforcement; immigration policy
    JEL: J15 J61 L20
    Date: 2020–01–15
  4. By: Ober, Kayly (University of Bonn)
    Abstract: This working paper was written as input for the Asian Development Outlook 2019. It reviews the literature at the intersection of disasters and migration in Asia and details the story of how disasters may affect mobility, from displacement to voluntary migration to “trapped populations.” It also provides an overview of the “migration as adaptation” literature, which shows that planned and sustained movement may help individuals weather shocks and diversify income in the face of disaster, as well as the uneven outcomes of disaster-related remittances in Asia. In addition, it gives insight into predicted impacts on mobility because of climate-related disasters and delves into the likely trends. Ultimately, it aims to show the diverse ways in which disaster-related migration may affect economic growth and social resilience in Asia.
    Keywords: climate change; disasters; migration; remittances; resilience
    JEL: J60 O15 Q54
    Date: 2019–07–02
  5. By: Tsourapas, Gerasimos (University of Birmingham)
    Abstract: How do states attempt to use their position as destinations for labor migration to influence sending states, and under what conditions do they succeed? I argue that economically driven cross-border mobility generates reciprocal political economy effects on sending and host states. That is, it produces migration interdependence. Host states may leverage their position against a sending state by either deploying strategies of restriction—curbing remittances, strengthening immigration controls, or both—or displacement—forcefully expelling citizens of the sending state. These strategies’ success depends on whether the sending state is vulnerable to the political economy costs incurred by host states’ strategy, namely if it is unable to absorb them domestically and cannot procure the support of alternative host states. I also contend that displacement strategies involve higher costs than restriction efforts and are therefore more likely to succeed. I demonstrate my claims through a least-likely, two-case study design of Libyan and Jordanian coercive migration diplomacy against Egypt in the aftermath of the Arab Spring. I examine how two weaker Arab states leveraged their position against Egypt, a stronger state but one vulnerable to migration interdependence, through the restriction and displacement of Egyptian migrants.
    Date: 2018–04–25
  6. By: Céline Piton (Economics and Research Department, National Bank of Belgium & Université libre de Bruxelles (SBS-EM, CEB and DULBEA), GLO, humanOrg, IRES and IZA); François Rycx (Université libre de Bruxelles (SBS-EM, CEB and DULBEA))
    Abstract: This paper provides a comprehensive quantitative assessment of the relationship between people’s migration background and their likelihood of being employed in Belgium. Using detailed quarterly data for the period 2008-2014, we find not only that first-generation immigrants face a substantial employment penalty (up to -36% points) vis-à-vis their native counterparts, but also that their descendants continue to face serious difficulties in accessing the labour market. The employment gap is, ceteris paribus, more pronounced for the first than for the second generation. Yet, intergenerational mobility patterns are found to be quite heterogeneous: although the children of immigrants from the European Union (EU) fare much better than their parents, the improvement is much more limited for those from EU candidate countries, and almost null for the second generation from the Maghreb. The situation of second-generation immigrants with only one foreign-born parent seems to be fairly good. In contrast, it appears that the social elevator is broken for descendants of two non-EU-born immigrants. Immigrant women are also found to be particularly affected, especially those originating from outside the EU. As regards education, it appears to be an important tool for fostering the labour market integration of descendants of non-EU-born immigrants. For firstgeneration immigrants, though, it proves to be much less effective overall. Focusing on the first generation, we find that: i) access to jobs increases with the duration of residence, though fairly slowly on average; ii) citizenship acquisition is associated with significantly better employment outcomes, for both EU and non-EU-born immigrants; iii) proficiency in the host country language is a key driver of access to employment, especially for non-EU-born immigrants; and iv) around a decade is needed for the employment gap between refugees and other foreign-born workers to be (largely) suppressed.
    Keywords: First- and second-generation immigrants, employment, moderating factors.
    JEL: J15 J16 J21 J24 J61
    Date: 2020–01
  7. By: Bhatia, Abhishek; Mahmud, Ayesha; Fuller, Arlan; Shin, Rebecca; Morshed, K.A.M; Rahman, Azad; Shatil, Tanvir; Sultana, Mahmuda; Balsari, Satchit; Leaning, Jennifer
    Abstract: Background The Rohingya people of Myanmar have been subject to government-sponsored discrimination, detention, violence, and torture, causing several waves of a mass exodus to Bangladesh. Since August 2017, when the latest wave of migration began, there has been a rapid expansion of refugee camps in Cox’s Bazar, Bangladesh, with camps now accommodating approximately 335,000 new refugees. In this rapidly changing scenario, assessing the needs of the Rohingya and the host communities in Cox’s Bazar is critical for prioritizing resource allocation. We conducted a rapid needs assessment survey in both the Rohingya and host communities in Cox’s Bazar to highlight the most pressing needs in the community. Methods We conducted a randomized survey of 402 recently-arrived Rohingya households and 400 households in the local host community, from March 15 to March 18, 2018. The survey collected information on household demographics, mortality, education of all members, income, and livelihoods, access to food and water, vaccination, and access and utilization of healthcare. We calculated descriptive statistics and appropriate standard errors for survey responses on these topics. Findings The sampled Rohingya households were younger than the host community households. Two-thirds of the reported deaths in the Rohingya households in the last 12 months were among male household members, with a low overall mean age at death (38.7 years). The majority (76·0%) of Rohingya household members, above the age of 15, reported having had no education, and 52·6% of Rohingya children were not attending school. Nearly all (93·5%) Rohingya households reported a decrease in income over the last 12 months, with 79.9% reporting no current income. Mean reported income in the host community was not significantly different between 2018 and the previous two years. We found high levels of reported food insecurity among the Rohingya, which was also reflected in their prioritization of food over all else if provided additional cash assistance, and in their borrowing money to procure food. The majority (61·7%) of Rohingya children, under two, had received zero doses of injectable vaccines in Myanmar, and of them, 24·8% had also not received any injectable vaccines in Bangladesh. For oral vaccines, 57·5% of children, under two, had received zero doses in Myanmar, of whom 29·6% had also not received any oral doses in Bangladesh. In comparison, children in the host community had much higher rates of vaccination. Some Rohingya households reported challenges in accessing healthcare (14·2%), with the majority reporting distance to a healthcare facility as the main cause. In the host community, 32·5% of all surveyed households reported issues accessing healthcare, with wide variation (0 to 57·6%) among locations. Interpretation The results of this rapid needs assessment offer important insights into the most pressing challenges facing the Rohingya while providing contextual information about the neighboring Bangladeshi communities hosting them. The Rohingya population is greatly impoverished, with very low levels of education. While growing evidence globally demonstrates the prudence in formally integrating refugees into the labor force, doing so in Bangladesh will entail strategic investment in imparting skills and education to the host and migrant populations, with a particular focus on women. Resources should also be allocated to address pressing needs such as food shortages and vaccination gaps. Funding This study was supported by BRAC and the FXB Center for Health and Human Rights, Harvard TH Chan School of Public Health.
    Date: 2018–04–15
  8. By: Holzer, Harry J. (Georgetown University)
    Abstract: The U.S. labor market will be buffeted by major changes in the next few decades, such as an aging population, automation that displaces workers and requires skill adjustments, and increases in independent or informal work and "fissured" workplaces. These forces will likely raise worker productivity over time while also raising inequality, reducing labor force participation and creating worker shortages in high-demand industries. In this context, immigration will help reduce costs in key high-demand industries (like health care and elder care), raise labor force and economic growth, and contribute somewhat to the nation's fiscal balance. Highly-educated immigrants will notably contribute to economic productivity and dynamism; but less-educated immigrants may substitute for native-born non-college workers and thereby further contribute to earnings inequality. Reforms should therefore modestly increase overall immigration over time, while shifting its composition somewhat toward more-skilled and labor-market-driven migrants. These reforms should occur within the broader context of "comprehensive" reform that also raises enforcement efforts against illegal immigrant flows while establishing a path to citizenship for the currently undocumented. These changes should also be tied to a range of efforts to raise earnings among all non-college workers.
    Keywords: immigration, labor supply, labor demand, education
    JEL: J1 J2 J6
    Date: 2020–01
  9. By: Kikkawa-Takenaka, Aiko (Asian Development Bank); Gaspar, Raymond (Asian Development Bank); Park, Cyn-Young (Asian Development Bank)
    Abstract: International migration is an essential element of economic integration. Yet, the intraregional movement of people and labor in Asia and the Pacific has stagnated in recent years even as the flow of goods, services, and investment have steadily risen. This paper examines key factors driving the movement of people from and within the region using bilateral international migrant stock data. Our analysis shows that commonly known determinants such as income differences; population size; and political, geographical, and cultural proximities between the migrant source and destination countries are associated with greater movement, along with the growing share of older population in destination economies and the similarities in the level of educational attainment. The paper also finds that cross-border migration is affected, in varied directions, by the degree of economic integration between the source and destination economies, especially through bilateral trade and value chain links. The offshoring of production—and hence jobs and other economic opportunities—to migrant source countries suppresses outmigration, but the expected rise in the source country income will eventually promote migration by relaxing financial constraints.
    Keywords: international migration; labor mobility; regional economic integration
    JEL: F22 O15
    Date: 2019–10–15
  10. By: Luigi Benfratello (Politecnico di Torino and CSEF); Davide Castellani (Henley Business School, University of Reading); Anna D’Ambrosio (Politecnico di Torino)
    Abstract: This paper investigates the link between migration and inward FDI in narrow geographies. Our results, based on 1,147 greenfield investment projects made by 895 MNEs into Italian provinces (NUTS3) over the 2003-2015 period, confirm a positive effect of the stock of immigrants on FDI, but no robust effects of emigrants. However, beyond this average effect lies significant heterogeneity. By unraveling this heterogeneity, we shed light on the potential mechanisms underlying this relation. Our results are consistent with an important role of demand and information channels, but not with an effect through the labour market. On the one hand, immigrants are not a factor that attracts more labour-intensive investments. On the other hand, the effect of immigrants is stronger when information and, to a lesser extent, market demand are more important. Overall, our paper bears significant implications for local development policy that partially contrast with the current public discourse on immigration.
    Keywords: Foreign Direct Investment, Migration, Location Choice, Information Effect, Demand Effect, Conditional Logit, Mixed Logit
    JEL: F22 F21 R30
    Date: 2019–12
  11. By: Escarce, José J. (University of California, Los Angeles); Rocco, Lorenzo (University of Padova)
    Abstract: To our knowledge, no study has examined the effect of immigration on the health of older natives. We use the Study of Health, Ageing and Retirement in Europe (SHARE) to investigate whether immigration affects depression among natives 65-80 years old. Immigration may increase the supply and lower the price of personal and household services, a term that refers to care services and non-care services such as cleaning, meal preparation, and domestic chores. Higher consumption of personal and household services by older natives may help maintain health through a variety of pathways including reduced loneliness, greater participation in meaningful social activities, and improved physical functioning. Using a shift-share IV, we find a beneficial effect of immigration on reducing the number of depression symptoms and the probability of clinically significant depression among older natives. We also find some evidence for the hypothesized mechanisms, although our ability to come to definitive conclusions about mechanisms is limited in our data.
    Keywords: health, immigration, aging, social determinants
    JEL: I12 I14 J61
    Date: 2019–12
  12. By: Max Viskanic (Sciences Po)
    Abstract: Can large immigration inflows impact electoral outcomes and specifically, what impact did immigration have on the vote in favour of leaving the European Union (Brexit) in the United Kingdom? In particular, I focus on how the increase in Polish immigration, the major group of immigrants post 2004, affected votes in favour of leaving the EU. I find a percentage point increase in Polish immigration to the UK to have caused an increase in votes in favour of Brexit of about 2.72-3.12 percentage points, depending on the specification. To obtain exogenous variation in Polish immigration, I collect data from the archives that reveals the location of Polish War Resettlement Camps after Word War II, which location is plausibly exogenous to current political outcomes. Discussing potential mechanisms, I examine public opinion data in the British Election Study 2015 and find evidence of adversity towards immigration to be a root cause. Other considerations such as the National Health Service (NHS), incumbency and the general trust in politicians as well as the political institutions seem not to play a role.
    Keywords: Political Economy; Voting; Migration; Brexit; EU; UK
    Date: 2020–01
  13. By: Howell, Anthony (Peking University)
    Abstract: This paper relies on recent proprietary data from the People’s Republic of China’s (PRC) poor rural minority areas to examine the importance of credit constraints on internal labor migration. Specifically, a liquidity shock via the PRC’s minimum living standard assistance (MLSA) program is decomposed into its direct and indirect parts. The institutional features of the MLSA program permit an identification strategy that relies on a set of verifiable assumptions and an instrument variable framework. The results reveal that the direct effect on migration of MLSA is negative, although the net effect is positive driven by the large indirect effects, which are twice as large for ethnic minorities compared to the Han majority. Subsequent evidence further suggests that the main mechanism behind the indirect effect is informal interpersonal lending fostered by risk-sharing strategies. The findings imply that once liquidity is injected into a village it gets circulated in the community, stimulating migration particularly within credit-constrained minority communities.
    Keywords: ethnicity; indirect effect; liquidity constraints; migration; risk-sharing mechanisms; targeted cash transfers
    JEL: C21 J18 J61 R23
    Date: 2019–04–11
  14. By: Andrey V. Rezaev (St Petersburg State University, Russian Federation); Pavel P. Lisitsyn (St Petersburg State University, Russian Federation); Alexander M. Stepanov (St Petersburg State University, Russian Federation)
    Abstract: Current publications in professional literature often discuss terrorism and extremism in the system of coordinates developed by jurisprudence where the different phenomena are eclectically combined and grouped for analytical purposes. Charles Tilly in his works insisted that the terms terror, terrorism, and terrorist do not identify causally coherent and distinct social phenomena but rather strategies that recur across a wide variety of actors and political situations. This paper tries to depict basic theoretical models and methodological framework for doing field sociological inquiry on the hottest issue in current migration studies which is how the reality of social exclusion in everyday life turns immigrants to the practices of ideological extremism.
    Keywords: : transnational migrants, extremism, everyday life, social inclusion and social exclusion of migrants
    Date: 2019–11
  15. By: Xubei Luo; Nong Zhu
    Abstract: The hub-periphery development pattern of the Guangdong economy, to some extent, is a miniature of that of the Chinese economy. The Pearl River Delta, drawing from its first-nature comparative advantages in factor endowments and proximity to Hong Kong SAR, China, and Macau SAR, China, and the second-nature advantages as first-movers in the reforms in attracting and retaining domestic and foreign resources, has developed into a regional economic center. This paper examines the pattern of inter- and intra-provincial migration and that of the concentration of production, to explore the challenges and opportunities for the success of “double transfer.” The paper suggests a four-prong approach, to improve the business environment, support the realization of latent comparative advantages, increase the skill level of the labor force to support the upgrade of the production structure, and protect the vulnerable, to support the inclusive growth of the economy in Guangdong in a sustainable manner.
    Keywords: Migration,China,
    JEL: J61 O11 R12
    Date: 2019–12–21

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