nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2021‒03‒15
fourteen papers chosen by
Yuji Tamura
La Trobe University

  1. Whose Job Is It Anyway? Co-Ethnic Hiring in New U.S. Ventures By Sari Pekkala Kerr; William R. Kerr
  2. Net Migration and its Skill Composition in the Western Balkan Countries between 2010 and 2019: Results from a Cohort Approach Analysis By Sandra M. Leitner
  3. Endogenous fertility and unemployment -Considering the effects of immigrants through school system By Jinno, Masatoshi; Yasuoka, Masaya
  4. Global food prices, local weather and migration in Sub-Saharan Africa By Lars Ludolph; Barbora Šedová
  5. Endogenous Immigration, Human and Physical Capital Formation, and the Immigration Surplus By Isaac Ehrlich; Yun Pei
  6. The Refugee Crisis and Right-Wing Populism: Evidence from the Italian Dispersal Policy By Campo, Francesco; Giunti, Sara; Mendola, Mariapia
  7. Are some people more equal than others? Experimental evidence on group identity and income inequality By Lustenhouwer, Joep; Makarewicz, Tomasz; Peña, Juan Carlos; Proaño Acosta, Christian
  8. Immigration, Crime, and Crime (Mis)Perceptions By Ajzenman, Nicolas; Dominguez-Rivera, Patricio; Undurraga, Raimundo
  9. Interrelationships between Human Capital, Migration and Labour Markets in the Western Balkans: An Econometric Investigation By Michael Landesmann; Isilda Mara
  10. Characteristics of migrant entrepreneurs: Asset in times of crisis? By David, Alexandra; Schäfer, Susann; Terstriep, Judith
  11. Language and xenophobia By Rottner, Florian
  12. The Immigrant Next Door: Exposure, Prejudice, and Altruism By Leonardo Bursztyn; Thomas Chaney; Tarek Alexander Hassan; Aakash Rao
  13. An Agent-Based Modelling Approach to Brain Drain By Furkan G\"ursoy; Bertan Badur
  14. Navigating through an external agenda and internal preferences: Ghana's national migration policy By Segadlo, Nadine

  1. By: Sari Pekkala Kerr; William R. Kerr
    Abstract: We explore co-ethnic hiring among new ventures using U.S. administrative data. Co-ethnic hiring is ubiquitous among immigrant groups, averaging about 22.5% and ranging from 40%. Co-ethnic hiring grows with the size of the local ethnic workforce, greater linguistic distance to English, lower cultural/genetic similarity to U.S. natives, and in harsher policy environments for immigrants. Co-ethnic hiring is remarkably persistent for ventures and for individuals. Co-ethnic hiring is associated with greater venture survival and growth when thick local ethnic employment surrounds the business. Our results are consistent with a blend of hiring due to information advantages within ethnic groups with some taste-based hiring.
    JEL: F22 J15 J44 J61 J62 J71 L26 M13 M51 R23
    Date: 2021–02
  2. By: Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: In view of the scarcity of reliable and detailed data on migration this paper develops the novel cohort approach, which allows us to deduce from annual Labour Force Surveys (LFS) the extent and skill composition of net migration. It is based on representative age cohorts who are followed over time and whose change in size and composition provides information about the extent and skill composition of net migration. As concerns skill composition, the analysis differentiates between four educational levels (Low, Medium-general, Medium-VET and High). The analysis is applied to the six Western Balkan countries (for the period 2010-2019), which lack official, comprehensive and domestic migration statistics, particularly in terms of the skill composition of migrants. The analysis shows that during the period analysed all six Western Balkan countries experienced net emigration which, however, differs across countries in terms of magnitude and particular age pattern. A further breakdown of net migration by highest level of education shows that net emigration in the region mainly occurs among the medium- and low-educated. Contrary to widespread perception, the analysis finds evidence of brain gain in terms of partly substantial net immigration of the highly educated in all countries except Albania, Bosnia and Herzegovina and Kosovo. Brain gain is highest among those in their early to mid-20s to early 30s. As this is the age at which students usually complete tertiary education, this is likely to be related to students returning to their home countries after graduating from tertiary education abroad.
    Keywords: Net-migration, skill composition, Western Balkans, cohort approach
    JEL: J61 J24
    Date: 2021–03
  3. By: Jinno, Masatoshi; Yasuoka, Masaya
    Abstract: We consider the effects of admitting immigrants with the burden of giving schooling to the native and the immigrant children. It may sound paradoxical; this model shows admitting immigrants may improve the welfare of the native when the necessary number of educators the immigrant children need is sufficiently high. What is more, admitting immigrants also improves the employment rate of the native.
    Keywords: Endogenous fertility, Unemployment, Immigrants
    JEL: H75 J61 J65
    Date: 2021–03–03
  4. By: Lars Ludolph (London School of Economics and Political Science); Barbora Šedová (Potsdam Institute for Climate Impact Research (PIK), Mercator Research Institute on Global Commons and Climate Change, University of Potsdam)
    Abstract: In this paper, we study the effect of exogenous global crop price changes on migration from agricultural and non-agricultural households in Sub-Saharan Africa. We show that, similar to the effect of positive local weather shocks, the effect of a locally-relevant global crop price increase on household out-migration depends on the initial household wealth. Higher international producer prices relax the budget constraint of poor agricultural households and facilitate migration. The order of magnitude of a standardized price effect is approx. one third of the standardized effect of a local weather shock. Unlike positive weather shocks, which mostly facilitate internal rural-urban migration, positive income shocks through rising producer prices only increase migration to neighboring African countries, likely due to the simultaneous decrease in real income in nearby urban areas. Finally, we show that while higher producer prices induce conflict, conflict does not play a role for the household decision to send a member as a labor migrant.
    Keywords: labour migration, food prices, climate, Africa
    JEL: O15 O55 Q56 Q54
    Date: 2021–03
  5. By: Isaac Ehrlich; Yun Pei
    Abstract: We evaluate the economic consequences of immigration in a two-country, two-skill, overlapping-generations framework, where immigration, population, human and physical capital formation, and economic growth are endogenous variables. We go beyond extant literature by integrating physical capital in our model. This enables the derivation of new insights about the induced-immigration effects of exogenous triggers, including pull and push factors and policy variables, on the dynamic evolution of the “immigration surplus” in the short run versus the long run, in destination vs. source countries and in the global economy. The policy shifts we analyze include the easing of constraints on potential migrants’ labor and physical capital mobility, and the role of physical capital endowments. We also discuss the policy implications of asymmetries in the net benefits from immigration across destination and source countries.
    JEL: F22 F43 J11 J24 O15
    Date: 2021–02
  6. By: Campo, Francesco (University of Milan Bicocca); Giunti, Sara (University of Milan Bicocca); Mendola, Mariapia (University of Milan Bicocca)
    Abstract: This paper examines how the 2014-2017 'refugee crisis' in Italy affected voting behaviour and the rise of right-wing populism in national Parliamentary elections. We collect unique administrative data throughout the crisis and leverage exogenous variation in refugee resettlement across Italian municipalities induced by the Dispersal Policy. We find a positive and significant effect of the share of asylum seekers on support for radical-right anti-immigration parties. The effect is heterogeneous across municipality characteristics, yet robust to dispersal policy features. We provide causal evidence that the anti-immigration backlash is not rooted in adverse economic effects, while it is triggered by radical-right propaganda.
    Keywords: dispersal policy, voting behavior, refugee crisis, immigration, impact evaluation
    JEL: D72 F22 O15 P16
    Date: 2021–01
  7. By: Lustenhouwer, Joep; Makarewicz, Tomasz; Peña, Juan Carlos; Proaño Acosta, Christian
    Abstract: We investigate the effects of group identity and income inequality on social preferences and polarization by means of a laboratory experiment. We split our subjects into two populations: in-group (representing "natives") and out-group ("migrants"). In-group subjects repeatedly vote whether an unemployment insurance should cover all, some, or no members of their group. By means of a two-by-two design we disentangle the effect of group identity from those of income inequality. Among others, our experiment yields the following findings: (1) subjects tend to vote for less inclusive insurance schemes when they sample a higher chance of employment; however, (2) in-group subjects with an ex ante more beneficial distribution of employment chances - relative to the out-group - are less selfish and vote for more inclusive insurance schemes; (3) ex ante more beneficial relative employment chances of in-group subjects also leads to less polarization; and (4) revelation and priming of group identity does not lead to discrimination against out-group "migrants" but, on the contrary, can lead to more compassionate and inclusive attitudes.
    Keywords: Income Inequality,Political Polarization,Migration,Economic Voting Behavior,Group Identity
    JEL: C92 D72 J15
    Date: 2021
  8. By: Ajzenman, Nicolas (São Paulo School of Economics-FGV); Dominguez-Rivera, Patricio (Inter-American Development Bank); Undurraga, Raimundo (University of Chile)
    Abstract: This paper studies the effects of immigration on crime and crime perceptions in Chile, where the foreign-born population more than doubled in the last decade. By using individual-level victimization data, we document null effects of immigration on crime but positive and significant effects on crime-related concerns, which in turn triggered preventive behavioral responses, such as investing in home-security. Our results are robust across a two-way fixed effects model and an IV strategy based on a shift-share instrument that exploits immigration inflows towards destination countries other than Chile. On mechanisms, we examine data on crime-related news on TV and in newspapers, and find a disproportionate coverage of immigrant-perpetrated homicides as well as a larger effect of immigration on crime perceptions in municipalities with a stronger media presence. These effects might explain the widening gap between actual crime trends and public perceptions of crime.
    Keywords: crime, immigration, crime perception, media, crime beliefs
    JEL: O15 F22 K1
    Date: 2021–02
  9. By: Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Isilda Mara (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: The high outward mobility that has characterised the countries in the Western Balkan (WB) region over the past three decades is often seen as tightly linked to severe labour market imbalances and persistently low utilisation of human capital over time. To shed light on these issues, we estimate a system of equations that accounts for the effects of labour market determinants and human capital on migration and vice versa. The period under analysis is 2005-2019 and considers mobility from five of the WB countries to the EU15. The empirical results confirm the importance of wage gaps and their changes as an important pull factor for driving outward mobility from the WB region that can be persistent over time. Also, gaps in human capital emerge as a powerful determinant for explaining mobility into countries where returns on human capital are higher.
    Keywords: Migration, Labour Markets, Southeast Europe, Balkans, pVAR modelling, European integration
    JEL: F22 J60 J61 O15 C32 C13 P20 P27
    Date: 2021–03
  10. By: David, Alexandra; Schäfer, Susann; Terstriep, Judith
    Abstract: We identified three major characteristics of migrant entrepreneurs at the individual and organisational level: risk-taking and bricolage attitude, making extensive use of social and cultural capital, and transnational embeddedness. Perseverance and creativity not only prompt entrepreneurs to set up a business faster but possibly better cope with exogenous shocks and resulting uncertainty. Being embedded and acting in various transnational and socio-cultural settings allows them to access additional resources, including specific knowledge, experiences, and cultures, to use for business stabilisation. Based on concrete experiences of crises at the time of flight or migration specific behaviours and virtues emerge that may have a lasting impact on understanding and dealing with wicked situations such as the COVID-19 crisis. The joint project ReCOVery - Resilience of Migrant Entrepreneurs during the COVID-19 crises centres on the ability of migrant entrepreneurs to cope with the current crisis.
    Date: 2021
  11. By: Rottner, Florian
    Abstract: Previous research examining attitudes toward foreigners and immigration has focused primarily on economic, socioeconomic, and cultural variables to explain the different attitudes of individuals toward foreigners. With my research, I add language as another dimension to explain these differences. I use the difference in how languages distinguish between different politeness groups in their second person pronouns to explain how much trust individuals place in foreigners. Using data from the World Value Survey and the World Atlas of Language Structure I find that individuals who speak a language without politeness distinctions have a higher probability to respond that they trust foreigners.
    Date: 2021
  12. By: Leonardo Bursztyn (University of Chicago - Department of Economics); Thomas Chaney (SciencesPo - Sciences Po - Department of Economics; Centre for Economic Policy Research (CEPR)); Tarek Alexander Hassan (Boston University); Aakash Rao (Harvard University)
    Abstract: We study how decades-long exposure to individuals of a given foreign descent shapes natives’ attitudes and behavior toward that group, exploiting plausibly exogenous shocks to the ancestral composition of US counties. We combine several existing large-scale surveys, cross-county data on implicit prejudice, a newly-collected national survey, and individualized donations data from large charitable organizations. We first show that greater long-term exposure to Arab-Muslims: i) decreases both explicit and implicit prejudice against Arab-Muslims, ii) reduces support for policies and political candidates hostile toward Arab-Muslims, iii) increases charitable donations to Arab countries, iv) leads to more personal contact with Arab-Muslim individuals, and v) increases knowledge of Arab-Muslims and Islam in general. We then generalize our analysis, showing that exposure to any given foreign ancestry leads to more altruistic behavior toward that group.
    Keywords: contact, attitudes, immigration, prejudice, altruism
    JEL: D83 D91 P16 J15
    Date: 2021
  13. By: Furkan G\"ursoy; Bertan Badur
    Abstract: The phenomenon of brain drain, that is the emigration of highly skilled people, has many undesirable effects, particularly for developing countries. In this study, an agent-based model is developed to understand the dynamics of such emigration. We hypothesise that skilled people's emigration decisions are based on several factors including the overall economic and social difference between the home and host countries, people's ability and capacity to obtain good jobs and start a life abroad, and the barriers of moving abroad. Furthermore, the social network of individuals also plays a significant role. The model is validated using qualitative and quantitative pattern matching with real-world observations. Sensitivity and uncertainty analyses are performed in addition to several scenario analyses. Linear and random forest response surface models are created to provide quick predictions on the number of emigrants as well as to understand the effect sizes of individual parameters. Overall, the study provides an abstract model where brain drain dynamics can be explored. Findings from the simulation outputs show that future socioeconomic state of the country is more important than the current state, lack of barriers results in a large number of emigrants, and network effects ensue compounding effects on emigration. Upon further development and customisation, future versions can assist in the decision-making of social policymakers regarding brain drain.
    Date: 2021–03
  14. By: Segadlo, Nadine
    Abstract: In the context of international migration from African countries to Europe, the EU widely applies the strategy of curbing irregular migration. EU efforts focus on combating the root causes of migration and flight as well as achieving African compliance on return and re-admission. This approach ignores the interests of the countries of origin. It also undermines what countries of origin do to deal with migration in their own states. In West Africa, the regional organisation ECOWAS strongly promotes migration management, and introduced the 2008 ECOWAS Common Approach on Migration with guidelines for migration governance in the region. Ghana, as one of the first ECOWAS member states, adopted a National Migration Policy (NMP) in 2016. The country has a long history of migration, has experienced different migration trends and is affected by various streams of migration. As little is known about the country's policy responses to migration, this study investigates migration policy-making in Ghana. It specifically examines the case of the NMP for Ghana and aims at uncovering stakeholder involvement in the policy-making process as well as its determinants. Guided by an analytical framework derived from theoretical considerations of the advocacy coalition framework, the interconnection of institutions, actors and ideas and an extensive literature review, the study uses a qualitative approach. The results are based on 14 weeks of field research in Ghana in which 40 experts were interviewed. Together with an analysis of a plethora of secondary data the study finds that when deciding to get involved in the policy-making process for the NMP for Ghana, stakeholders tend to be led by their interests and the resources they possess, as these are what their power is based on. The research further reveals that the NMP does not primarily address a perceived problem related to migration within Ghana, that is to say the internal migration flows from deprived to less deprived areas. Rather it largely pursues the interests of the EU, who is the main financer of the policy, to foster migration control. The results of the study therefore suggest that in the policy formulation process for Ghana's NMP, internal interests were outweighed by the external agenda of the EU.
    Date: 2021

This nep-mig issue is ©2021 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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