nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2021‒02‒01
nine papers chosen by
Yuji Tamura
La Trobe University

  1. Fiscal Position of Immigrants in Europe: A Quantile Regression Approach By Joxhe, Majlinda; Scaramozzino, Pasquale; Zanaj, Skerdilajda
  2. Ethnic identity and immigrants' labour market outcomes By Piracha, Matloob; Tani, Massimiliano; Cheng, Zhiming; Wang, Ben Zhe
  3. Temporary International Migration, Shocks and Informal Insurance: Analysis using panel data By Chakraborty, Tanika; Pandey, Manish
  4. Age Effects in Education: A Double Disadvantage for Second-Generation Immigrant Children By Abatemarco, Antonio; Cavallo, Mariagrazia; Marino, Immacolata; Russo, Giuseppe
  5. Are UK immigrants selected on education, skills, health and social networks? By Renee Luthra; Lucinda Platt
  6. Immigrants and the U.S. Wage Distribution By Vasil I. Yasenov
  7. Italy: immigration and the evolution of populism. By Luca Pieroni; Melcior Rossello Roig; Luca Salmasi
  8. Dynamics of immigrant resentment in Europe By Salomon, Katja
  9. Remittances and COVID-19: A Tale of Two Countries By Federico S. Mandelman; Diego Vilan

  1. By: Joxhe, Majlinda; Scaramozzino, Pasquale; Zanaj, Skerdilajda
    Abstract: This paper compares the net fiscal position (NFP) of immigrants versus natives using data from the European Survey on Living Conditions (EU-SILC) for the period 2007-2015. By employing a quantile regression approach, we find that European and non-European migrants have a different fiscal position from natives only on the extreme tails of the NFP distribution. Non-EU migrants contribute more than natives in the top quantile of the NFP, whereas they are more fiscally depend in the bottom quantile. We also examine the relationship between our calculated migrants' fiscal position and the fiscal perception of European citizens versus migrants as measured in European Social Survey (ESS) data. The negative perception in some European countries may be entirely driven by the fiscal position of migrants in the lowest quantile. Our results highlight the critical need to better understand the fiscal contribution of migrants in the destination countries for a fair and constructive migration policy
    Keywords: fiscal position,immigration,quantile regression,European countries
    JEL: H53 I30 F22
    Date: 2021
  2. By: Piracha, Matloob; Tani, Massimiliano; Cheng, Zhiming; Wang, Ben Zhe
    Abstract: The objective of this paper is to analyse how immigrants' ethnic identity correlates with their labour market outcomes. More precisely, we estimate the role of ethnic identity in employment, wages, under-employment (i.e., they would prefer to work more hours but are not given the opportunity), three measures of job satisfaction, overeducation and wages. We further explore whether economic downturn has a differentiated impact on our measures. Using Australian longitudinal data, we find that ethnic identity strongly is associated with employment and wages as well a number of job satisfaction measures. We then split our data and repeat the estimations for before and after the Great Financial Crisis of 2008-09. We find important differences in the way ethnic identity is associated with different measures of labour market outcomes under different economic conditions. Finally, we explore the mechanisms through which some of results could be explained.
    Keywords: Ethnic Identity,Assimilation,Employment,Wages,Job Quality,Overeducation
    JEL: F22 J15 J16 J21 Z13
    Date: 2021
  3. By: Chakraborty, Tanika; Pandey, Manish
    Abstract: We use panel data for rural Kyrgyzstan to examine households' international migration response when faced with shocks. Using a household fixed effects regression model, we find that while a drought shock increases the likelihood of migration, winter and earthquake shocks reduce the likelihood of migration. We use a simple theoretical framework to illustrate the trade-off between two effects of a shock for a household: loss of income and increase in the need of labor services. We show that migration increases when the former effect of a shock dominates, it reduces when the latter effect dominates. We explore these mechanisms by examining how the migration-response to shocks changes in the presence of alternate coping mechanisms and by evaluating the effect of shocks on a household's decision to send and recall a migrant member. We find that when households have easier access to informal finance the migration-response is muted only for shocks for which the adverse income effect dominates. Our findings also suggest that while shocks for which the loss of income effect dominates have a greater effect on the decision to send a migrant, shocks for which the need of labor services effect dominates only affect the decision to recall a migrant. These findings provide evidence in favor of the proposed mechanisms through which shocks affect temporary migration.
    Keywords: Temporary migration,shocks,insurance,informal finance,Asia,Kyrgyzstan
    JEL: J61 O15 O16
    Date: 2021
  4. By: Abatemarco, Antonio; Cavallo, Mariagrazia; Marino, Immacolata; Russo, Giuseppe
    Abstract: A double disadvantage occurs when the interaction of two disadvantages generates an additional disadvantage. We show that second-generation immigrant children in the Italian primary school experience a double disadvantage that, relative to the average native, reduces scores in Italian by 17% and in Math by 20%. The double disadvantage stems from the interaction of the immigration background with age effects (namely, Absolute Age Effect and Relative Age Effect). In a policy perspective, we show that controlling for age effects in class composition criteria pursues integration because it delivers extra benefits to second-generation immigrant children. Besides, we point out the possibility of exploiting the larger impact of the relative age on second-generation children in order to support their performance and reduce the large penalization associated to the immigration background.
    Keywords: second-generation immigrants,education,age effects,double disadvantage
    JEL: I21 J01 J13 Z13
    Date: 2021
  5. By: Renee Luthra (University of Essex); Lucinda Platt (London School of Economics)
    Abstract: It is assumed that not only will more highly educated migrants do better in the receiving country labour market, but also that those who are relatively more educated compared to their compatriots, that is who are ‘selected’, will bring additional forms of human and social capital associated with economic success. Given the lack of information on these traits in most datasets, this assumption has not yet been comprehensively tested. Combining information on usually unobserved labour market relevant skills and characteristics with measures of educational selection and labour market outcomes of the foreign born in the UK, we do not find that educational selection is systematically associated with better cognitive or non-cognitive skills, health or social network composition. For more elite migration streams, educational selectivity is negatively associated with skills. As a result, higher selection does not translate into better labour market outcomes net of education. We argue that while higher bars to migration may increase the absolute skill level of migrants, it may also exclude those with (usually unobserved) favourable labour market characteristics who lack social and financial capital, reinforcing transnational class reproduction rather than selecting for the brightest and the best.
    Keywords: selectivity, immigration, migrant heterogeneity, labour market, employment wages, gender
    Date: 2021–01
  6. By: Vasil I. Yasenov (Stanford University, Immigration Policy Lab)
    Abstract: A large body of literature estimates the relative wage impacts of immigration on low- and high-skill natives, but it is unclear how these effects map onto changes of the wage distribution. I document the movement of foreign-born workers in the U.S. wage distribution, showing that, since 1980, they have become increasingly overrepresented in the bottom. Downgrading of education and experience obtained abroad partially drives this pattern. I then undertake two empirical approaches to deepen our understanding of the way foreign-born workers shape the wage structure. First, I estimate a standard theoretical model featuring constant elasticity of substitution technology and skill types stratified across wage deciles. Second, I estimate reduced-form quantile treatment effects by constructing a ceteris paribus counterfactual wage distribution with lower immigration levels. Both analyses uncover a similar monotone pattern: a one percentage point increase in the share of foreign-born leads to a 0.2–0.3 (0.2–0.4) percent wage decrease (increase) in the bottom (top) decile and asserts no significant pressure in the middle. When analyzing the drivers of this pattern, I find suggestive evidence for a novel mechanism through which local labor markets absorb foreign-born workers: occupational differentiation of immigrants relative to natives.
    Keywords: immigration, local labor markets, wage structure, counterfactual distribution, quantile treatment effects
    JEL: C21 J15 J21 J31 R23
    Date: 2020–01
  7. By: Luca Pieroni; Melcior Rossello Roig; Luca Salmasi (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)
    Abstract: We estimate the impact of immigration on the upsurge of populism in Italy. Our data considers electoral results at municipality level of the Senate of the Italian Republic and the Chamber of Deputies over the period 2006-2018. Findings in our research point toward a positive impact of the share of migrants on the rise of right-wing populist parties. According to our estimates the size of the average increase of the share of immigrants between our first and last electoral years (3.33 percentage points) corresponds to an increase of 2.08 percentage points for the Centre-right coalition. Lega is the party that capitalizes the most out of the anti-immigration. The size of the effect for Lega raises to 6.41 percentage points. We explore the heterogenous e ect of how the antiimmigration rhetoric is the main mechanism that exacerbates out of fear and insecurity the gap between Lega and its most direct rivals. Our paper o ers a fresh view by looking at plausible mechanisms behind our results by inspecting the European Social Survey.
    Keywords: Immigration, Populism, Italy, Instrumental Variables.
    JEL: P16 D72 J15
    Date: 2021–01
  8. By: Salomon, Katja
    Abstract: A test of social explanations of immigrant resentment - contact, threatened responses, grievances, social disintegration, political persuasion, socialization contexts - across 30 European countries between the years 2002-2016 (N=308.430) provides the background for a comprehensive discussion of how these mechanisms interact and connect to migration patterns. Most susceptible to resentment are those (1) lacking opportunities or (2) easy to persuade. (1) Socioeconomic status, place of residency, grievances, social disintegration, immigrant presence, birth cohort interact to provide/inhibit opportunities for social, economic participation (for natives and migrants) leading to less/greater resentment. (2) Threatened responses are concerns over potential consequences of certain kinds of immigration and are linked to individual characteristics that increase exposure and susceptibility to party cueing, policy signaling and media bias. At the contextual-level, these processes are self-mitigating: Affluent, high-immigration countries more easily sustain tolerance for the same reasons they attract immigrants (opportunities) but are more prone to threatened responses since these are provoked by immigration characteristics overrepresented in affluent countries. While this dynamic is reversed in less advantaged countries, it is also vulnerable to disruption explaining higher resentment in certain countries. Self-mitigating shapes resentment in urban areas as well, but urbanization disrupts regional dynamics, leaving rural Europe especially susceptible to resentment.
    Keywords: immigration attitudes,contact,threat,deprivation,disorder,party cues,geopolitical threat
    Date: 2020
  9. By: Federico S. Mandelman; Diego Vilan
    Abstract: Looking at the effects of the COVID-19 pandemic on workers' remittances flowing from the United States, this article focuses on the experiences of two countries, El Salvador and Mexico, which account for approximately 30 percent of all immigrants currently residing in the United States. Following the second quarter's economic lockdown, transfers to these countries experienced perplexing dynamics. Specifically, remittances to El Salvador witnessed a record 40 percent sudden drop, while Mexico recorded an unexpected 35 percent increase. We discuss some of the narratives proposed to explain this puzzling evidence and propose some alternative hypotheses.
    Keywords: Remittances; COVID-19
    JEL: F40 F41 O10
    Date: 2020–10–21

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