nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2020‒02‒17
seven papers chosen by
Yuji Tamura
La Trobe University

  1. Migration in Libya : A Spatial Network Analysis By Di Maio,Michele; Leone Sciabolazza,Valerio; Molini,Vasco
  2. Immigration and Offshoring: Two Forces of Globalisation and Their Impact on Employment and the Bargaining Power of Occupational Groups By Michael Landesmann; Sandra M. Leitner
  3. Weathering the storm: Weather shocks and international migrants from the Philippines By Pajaron, Marjorie C.; Vasquez, Glacer Niño A.
  4. Skills proficiency and the labour market outcomes of migrants By Michele Tuccio
  5. The Retirement Migration Puzzle in China By Chen, Simiao; Jin, Zhangfeng; Prettner, Klaus
  6. Sending money home: Transaction cost and remittances to developing countries By Ahmed, Junaid; Mughal, Mazhar; Martínez-Zarzoso, Inmaculada
  7. Migration and Remittances in the Former Soviet Union Countries of Central Asia and the South Caucasus : What Are the Long-Term Macroeconomic Consequences? By Brownbridge,Martin; Canagarajah,Sudharshan

  1. By: Di Maio,Michele; Leone Sciabolazza,Valerio; Molini,Vasco
    Abstract: This paper provides the first systematic analysis of migration to, within, and from Libya. The data used in the analysis are from the Displacement Tracking Matrix data set of the International Organization for Migration. The analysis uses this unique source of data, combining several techniques to analyze various dimensions of migration in Libya. First, the paper provides a detailed description of the demographic characteristics and national composition of the migrant populations in Libya. Next, it discusses the determinants of migration flow within Libya. The findings show that migration in Libya can be characterized as forced migration, because conflict intensity is the main determinant of the decision to relocate across provinces. Finally, the paper describes the direction, composition, and evolution of international migration flows passing through Libya and identifies the mechanisms of location selection by migrants within Libya by identifying hotspots and cluster provinces.
    Keywords: Social Cohesion,Social Conflict and Violence,Armed Conflict,International Migration,Human Migrations&Resettlements,Migration and Development,Labor Markets
    Date: 2020–01–14
  2. By: Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper estimates conditional demand models and, using a joint approach for the period 2008-2017, examines the impact of immigration and different measures of offshoring on the labour demand and demand elasticities of native workers in four different types of occupational groups managers/professionals, clerical workers, craft (skilled) workers and manual workers. The analysis is conducted using data for four EU economies Austria, Belgium, France and Spain. Our results point to important and occupation-specific direct and indirect effects of immigration and offshoring. Both offshoring – particularly services offshoring – and immigration have negative direct employment effects on all occupations, but native clerks and manual workers are affected the most, and native managers/professionals the least. Generally, offshoring exerts a stronger direct negative employment effect than does immigration. Our results also identify an important (labour demand) elasticity-channel of immigration and offshoring and show that some groups of native workers can also actually gain from globalisation through an improvement in their wage-bargaining position. Overall, our results indicate a deterioration in the bargaining power of native manual workers arising from both immigration and offshoring; an improvement in the bargaining position of native craft workers in the case of both immigration and offshoring; and an improvement in the bargaining position of native clerical workers and managers/professionals in the case of offshoring only. Finally, our analysis of the cross-effects of immigration highlights the important role of migrant managers/professionals for the labour demand and demand elasticities (bargaining power) of native clerical workers, craft and manual workers. Disclaimer Funding from the Austrian Federal Ministry of Labour, Social Affairs, Health and Consumer Protection is gratefully acknowledged.
    Keywords: Offshoring, immigration, labour demand elasticity, bargaining power, occupations
    JEL: F16 F22 F66
    Date: 2020–01
  3. By: Pajaron, Marjorie C.; Vasquez, Glacer Niño A.
    Abstract: The growing literature on environmental migration presents conflicting results. While some find that natural disasters induce international migration, others discover a dampening effect. We aim to reconcile these differences by using a comprehensive list of weather shocks from the Philippines, a country prone to natural disasters and a major exporter of labor. We constructed a longitudinal provincial dataset (2005–2015) from an assemblage of administrative and survey datasets and tested linear, quadratic, and lagged models. Our fixed-effects results are consistent with both strands in the literature with caveats. First, Filipinos are more likely to work abroad when they experience less-intense tropical cyclones and storm warning signal but are more likely to stay with a more damaging storm warning signal. Second, differential effects of weather shocks on international migration contingent on agriculture exists. Third, non-environmental factors such as economic (unemployment rate) and infrastructure (number of high schools) also push Filipinos abroad.
    Keywords: Migration,Natural Disaster,Panel Dataset,Agriculture,OFWs
    JEL: C33 C36 F22
    Date: 2020
  4. By: Michele Tuccio
    Abstract: Across the OECD, the labour-market performance of foreign-born-adults tends to lag behind that of the native-born. Immigrants are not only more likely to be unemployed or inactive, but they also earn less and work in lower-skilled jobs. Differences in skills proficiency, language spoken and country of education explain a large part – albeit not the entirety – of these observed gaps. Policies should therefore aim to provide immigrants with effective language tuition, adult education and training programmes in order to ensure the successful integration of foreign-born workers into host economies.
    Date: 2020–02–11
  5. By: Chen, Simiao; Jin, Zhangfeng; Prettner, Klaus
    Abstract: We examine whether and how retirement affects migration decisions in China. Using a regression discontinuity (RD) design approach combined with a nationally representative sample of 228,855 adults aged between 40 and 75, we find that retirement increases the probability of migration by 12.9 percentage points. Approximately 38% of the total migration effects can be attributed to inter-temporal substitution (delayed migration). Retirement-induced migrants are lower-educated and have restricted access to social security. Household-level migration decisions can reconcile different migration responses across gender. Retirees migrate for risk sharing and family protection mechnisms, reducing market production of their families in the receiving households.
    Keywords: Retirement,Migration decision,Regression discontinuity design
    JEL: J14 J26 J61
    Date: 2020
  6. By: Ahmed, Junaid; Mughal, Mazhar; Martínez-Zarzoso, Inmaculada
    Abstract: Remittances, the part of the migrant's income sent back to their family living in the origin country, have become a critical stepping-stone to economic development for many developing nations. A key factor that causes migrants to use informal channels is the high cost of transferring funds through formal channels. Reducing the cost of remitting is one of the 2030 Sustainable Development Goals; it is also an important policy objective as it helps to bring remittances into the formal economy, enhances financial inclusion and increases the net income of receiving households. This study examines the question of whether and to what extent the reduction in the cost of remittances increases the flow of remittances to developing countries, and whether larger amounts are remitted when the cost per transaction decreases (the so-called scale effect). It uses bilateral data on remittance flows and exploits a novel dataset covering transaction costs for 30 sending and 75 receiving countries for the period 2011-2017. A gravity model of remittance flows is estimated using panel data and instrumental variable techniques to account for potential endogeneity. We find that transaction cost is a significant predictor of the volume of formal remittances. A 1 percent decrease in the cost of remitting USD 200 leads to about a 1.6 percent increase in remittances. This association remains unchanged regardless of the models used and techniques employed. In addition to this strong impact of transfer fees, migrant stock, exchange rate stability in the recipient country and financial development in both the recipient and sending countries are also found to be important factors driving remittances. The findings suggest that policies designed to increase remittances need to focus on decreasing the cost of remitting through formal channels.
    Keywords: bilateral remittances,cost of remitting,international migration,developingcountries
    JEL: F22 F24 F30 O10 O17
    Date: 2020
  7. By: Brownbridge,Martin; Canagarajah,Sudharshan
    Abstract: Armenia, Georgia, the Kyrgyz Republic, and Tajikistan have all experienced substantial out-migration of workers and an associated inflow of workers'remittances over the past two decades. These four countries have much higher human capital, as measured by the Human Capital Index, than is typical for countries with similar levels of per capita income, and this may enable migrant workers to exploit opportunities to work in economies where labor productivity is higher. The inflow of workers'remittances has had effects analogous to those of Dutch disease in the Kyrgyz Republic and Tajikistan, which have experienced a large rise in expenditure to output and the share of services in gross domestic product, appreciation of the Balassa-Samuelson adjusted real exchange rates, and poor trade performance. In Armenia and Georgia, where remittances are a smaller share of gross domestic product, the effects were much more muted and their trade performance was much better.
    Date: 2020–01–15

This nep-mig issue is ©2020 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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