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on Economics of Human Migration |
| By: | Dirk Engelmann; Eckhard Janeba; Lydia Mechtenberg; Nils Wehrhöfer |
| Abstract: | Mobility of high-income individuals across borders puts pressure on governments to lower taxes. A central tenet of the corresponding textbook argument is that mobile individuals react to tax differentials through migration, and in turn immobile individuals vote for lower taxes. We investigate to which extent this argument is complete. In particular, political ideology may influence voting on taxes. We vary mobility and foreign taxes in a survey experiment within the German Internet Panel (GIP), with more than 3,000 individuals participating. We find that while the treatment effects qualitatively confirm model predictions how voters take mobility of high-income earners into account when choosing domestic taxes, ideology matters: left-leaning high-income individuals choose higher taxes and emigrate less frequently than right-leaning ones. These findings are in line with the comparative-static predictions of a simple model of inequality aversion when the aversion parameters vary with ideology. |
| Keywords: | taxation, mobility, ideology, survey experiments |
| JEL: | D72 F22 H21 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8595&r=all |
| By: | Julian Martinez-Correa (CEDLAS-IIE-FCE-UNLP); Leonardo Peñaloza Pacheco (CEDLAS-IIE-FCE-UNLP); Leonardo Gasparini (CEDLAS-IIE-FCE-UNLP) |
| Abstract: | The effect of immigration on preferences for redistribution has been recently studied in the context of developed countries receiving migrants from poorer countries with very different cultural backgrounds. In this paper we explore this issue in the context of migration across similar Latin American countries. To this aim, we exploit data at the provincial level from a large attitudinal survey (LAPOP) and match it to immigration data from different sources. We follow three approaches: first, we implement an instrumental variables approach in a cross-section of censuses; second we estimate fixed effects models with data from a large sample of harmonized national household surveys, and third we exploit the massive inflow of Venezuelan refugees into the border country of Colombia with an instrumental variables methodology. Our results suggest a significant, negative and non-monotonic relationship between the share of immigrants at the provincial level and the support for redistribution policies. This anti-redistribution effect is larger among those individuals with higher income. |
| JEL: | O15 N36 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:dls:wpaper:0268&r=all |
| By: | Mark Colas; Dominik Sachs |
| Abstract: | Low-skilled immigrants indirectly affect public finances through their effect on native wages & labor supply. We operationalize this general-equilibrium effect in the workhorse labor market model with heterogeneous workers and intensive and extensive labor supply margins. We derive a closed-form expression for this effect in terms of estimable statistics. We extend the analysis to various alternative specifications of the labor market and production that have been emphasized in the immigration literature. Empirical quantifications for the U.S. reveal that the indirect fiscal benefit of one low-skilled immigrant lies between $770 and $2,100 annually. The indirect fiscal benefit may outweigh the negative direct fiscal effect that has previously been documented. This challenges the perception of low-skilled immigration as a fiscal burden. |
| Keywords: | Immigration; Fiscal impact; General equilibrium |
| JEL: | H20 J31 J62 J68 |
| Date: | 2020–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedmoi:88846&r=all |
| By: | Elizabeth U. Cascio; Ethan G. Lewis |
| Abstract: | We examine how the large, one-time legalization authorized by the Immigration Reform and Control Act (IRCA) has affected the scale and character of immigration to the U.S. since the late 1980s. Exploiting cross-country variation in the magnitude of the legalization shock, we find that each IRCA admit accounts for the subsequent admission of 1 to 2 family members, mostly immediate family. There is little evidence that the legalization increased subsequent unauthorized migration; in fact, fewer temporary visa overstays have somewhat offset the additional family admissions. The marginal family-sponsored admit has not been negatively selected and has not increased fiscal burdens. |
| JEL: | F22 J08 J61 J68 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27874&r=all |
| By: | Roupakias, Stelios; Dimou, Spiridoula |
| Abstract: | This paper examines the relationship between immigration and host countries’ institutional quality, using international migration data, and two composite metrics, encompassing multiple dimensions of governance. Moreover, we construct indicators of cultural diversity, such as fractionalization and polarization, to capture potential effects from multiculturalism. To reduce endogeneity concerns, we employ pseudo gravity-based instruments in a 2SLS setting. Overall, our findings suggest that counties with higher immigrant concentrations and cultural polarization display lower levels of institutional quality. Notably, however, the impact on countries with healthy institutions appear to be negligible. |
| Keywords: | Immigration · Diversity · Institutions |
| JEL: | J15 O15 O43 |
| Date: | 2020–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:103268&r=all |
| By: | Yvonne Giesing; Felicitas Schikora |
| Abstract: | Emigrants are less likely to participate in elections in their home country. They are also self-selected in terms of education, gender, age, and political preferences, changing the structure of the origin population. High emigration rates can therefore have a systematic influence on election results. Using administrative migration and voting data, we show that counties in Poland that have experienced large emigration following the accession to the European Union in 2004 are characterised by larger vote shares for right-wing parties. We use instrumental variable estimations that exploit distance to the border and to airports to account for endogenous migration patterns. Results are robust to estimations using first differences. Results hold for elections of the national and EU parliament and for different areas within Poland. Surprisingly, we find no effects on incumbent parties. In addition, our results show increased voting for parties with pro-European positions. Analysing the mechanisms using survey data, we illustrate that emigrants (stayers) have less (more) trust in right-wing parties. The results have important policy implications for voting regulations. |
| Keywords: | migration, voting, political economy, EU enlargement, trust |
| JEL: | D72 F22 O15 P16 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8570&r=all |
| By: | Jordi Paniagua (University of Valencia (Spain)); Jesús Peiró-Palomino (University of Valencia (Spain) and INTECO); Andrés J. Picazo-Tadeo (University of Valencia (Spain) and INTECO) |
| Abstract: | Alongside the economic determinants and unobserved structural forces that drive migration flows, asylum migration faces additional natural and man-made hazards, which fall in the broad category of well-being. This paper estimates the effect of a composite well-being indicator on asylum migration flows with a structural grav- ity equation. The paper starts by augmenting the gravity model to explain asylum flow with country-pair relative well-being, relocation costs and multilateral resistance. Taking the OECD Better Life Index as a starting point, we then combine Data Envel- opment Analysis and Multi-Criteria-Decision-Making to construct a multidimensional well-being indicator that groups 23 raw indicators into a single composite indicator with 10 consistently comparable dimensions across countries. Then, using a panel of bilateral asylum flows in OECD countries, we are able to obtain theoretically-grounded and consistent estimates. Results reveal that the composite indicator of well-being has a significant effect, although only certain dimensions of well-being act as push and pull factors. |
| Keywords: | asylum-seekers; well-being; composite indicator; gravity equation, multi- lateral resistance |
| JEL: | F22 I31 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:2008&r=all |
| By: | Siddhartha Datta |
| Abstract: | Consequences from the 2019 anti-extradition protests in Hong Kong have been studied in many facets, but one topic of interest that has not been explored is the impact on the immigration of Bangladeshi immigrants into the city. This paper explores the value add of Bangladeshis to the Hong Kong, how the protests affected their mentality and consequently their immigration, and potentially longer-term detrimental effects on the city. |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2009.09165&r=all |
| By: | Aldén, Lina (Department of Economics and Statistics, Linnaeus University); Bastani, Spencer (Institute for Evaluation of Labour Market and Education Policy (IFAU)); Hammarstedt, Mats (Department of Economics and Statistics, Linnaeus University); Miao, Chizheng (Department of Economics and Statistics, Linnaeus University) |
| Abstract: | We study ethnic differences in long-term self-employment in Sweden combining population-wide register data and a unique survey targeting a large representative sample of the total population of long-term self-employed. Using the registers, we analyze the evolution of labor and capital income during the first ten years following self-employment entry. We find that, while ethnic differences in labor income become smaller over time, ethnic differences in capital income grow stronger during the course of self-employment. These findings are robust to controlling for factors such as organizational form and type of industry. We use the survey data to gain further insights into these differences, and show that immigrant self-employed experience more problems, earn less, but work harder than native self-employed. They also have a less personal relation to their customers, do not enjoy their work as much as natives, and appear to have different perspectives on self-employment in general. |
| Keywords: | Self-employment; Immigration; Integration; Long-term; survey |
| JEL: | D31 J15 J24 L26 |
| Date: | 2020–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1361&r=all |
| By: | Elena Cottini (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Claudio Lucifora (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Gilberto Turati; Daria Vigani |
| Abstract: | In this paper we study the differences between natives and migrants in the appropriate use of emergency care. We focus on children under one year of age using a sample of more than 45,000 children living in the Metropolitan area of Milan. Consistently with the literature, our findings show that migrants’ children are characterized both by a higher probability to use emergency care and by a higher likelihood of an inappropriate use of this service. These findings are robust to the inclusion of additional controls, family doctor’s characteristics, as well as potential selection bias. We also explore potential mechanisms driving these results. We find that linguistic and cultural distance between natives and migrants explain the higher use of emergency services and the inappropriate use of these services. Conversely supply side factors do not seem to play any relevant role. These findings suggest that integration policies aimed at increasing language proficiency of immigrants would be helpful in improving the appropriate use of emergency care. |
| Keywords: | emergency care, children, migrants, inappropriate care. |
| JEL: | I10 I14 J15 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie1:def093&r=all |