nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2021‒04‒12
twelve papers chosen by
Yuji Tamura
La Trobe University

  1. Cultural differences and immigrants' wages By Morgan Raux
  2. Rising Immigration and Falling Native-Born Home Ownership: A Spatial Econometric Analysis for New Zealand By Chao Li; John Gibson; Geua Boe-Gibson
  3. The solution of the immigrant paradox: aspirations and expectations of children of migrants By Michel Beine; Ana Cecilia Montes Vinas; Skerdikajda Zanaj
  4. The costs and mortal dangers of unauthorized migrations as a limiting rationing device. Is there a better solution? By Chilosi, Alberto
  5. Locked Down, Lashing Out: Situational Triggers and Hateful Behavior Towards Minority Ethnic Immigrants By Dipoppa Dipoppa; Guy Grossman; Stephanie Zonszein
  6. Resilience against the Pandemic: the Impact of COVID-19 on Migration and Household Welfare in Tajikistan By Satoshi Shimizutani; Eiji Yamada
  7. Weather, Climate, and Migration in the United States By Jamie T. Mullins; Prashant Bharadwaj
  8. Public Preferences on Immigration in Japan By Toshihiro Okubo
  9. Another Brick in the Wall. Immigration and Electoral Preferences: Direct Evidence from State Ballots By Bargain, Olivier; Stephane, Victor; Valette, Jérôme
  10. Returns to International Migration: Evidence from a Bangladesh-Malaysia Visa Lottery By Mobarak, Ahmed Mushfiq; Sharif, Iffath; Shrestha, Maheshwor
  11. Internal Migration and Labor Market Outcomes in Indonesia By Tushar Bharati; Wina Yoman
  12. International Migration in Ireland, 2020. Report to the OECD Expert Group on Migration By Philip J. O'Connell

  1. By: Morgan Raux (Department of Economics and Management, Université du Luxembourg)
    Abstract: In this paper, I investigate how cultural differences affect the labor-market performance of immigrant workers in Germany. I document a negative relationship between hourly wages and the cultural distance between immigrants' countries of origin and Germany. This result is robust across the three main indicators used in the gravity literature: linguistic, religious, and genetic distances. This cultural wage penalty disappears after five to ten years spent in Germany. Controlling for language proficiency as well as for selective in- and out-migration, these results highlight the cultural integration of immigrant workers. I finally provide evidence suggesting that lower wage progression may be explained by fewer job-to-job transitions.
    Keywords: Cultural distance, Immigrant Workers.
    JEL: J61 Z10
    Date: 2021
  2. By: Chao Li (University of Auckland); John Gibson (University of Waikato); Geua Boe-Gibson (University of Waikato)
    Abstract: In the last two decades the foreign-born share of New Zealand’s population has risen far faster than in other rich countries, raising questions about impacts on the native-born population. We apply spatial econometric models to a three-wave panel of 1851 census area units to examine impacts of higher foreign-born population shares on home ownership rates for the native-born. A standard deviation higher foreign-born share is associated with a one-sixth of a standard deviation lower ownership rate for the native-born. Much of the impact is indirect, with higher foreign-born shares in one area spilling over into lower native-born ownership rates elsewhere.
    Keywords: immigration; home ownership; spatial spillovers; New Zealand
    JEL: J61 R31
    Date: 2021–03–31
  3. By: Michel Beine (Department of Economics and Management, Université du Luxembourg); Ana Cecilia Montes Vinas (Department of Economics and Management, Université du Luxembourg); Skerdikajda Zanaj (Department of Economics and Management, Université du Luxembourg)
    Abstract: In this paper, we push forward the hypothesis that misalignment between expectations and aspira- tions crucially affects the educational outcomes of young adults. Using AddHealth, a dataset of 20,774 adolescents between the grades 7-12, we show that the difference in school performance between mi- grant children and natives lies within the aspirations and expectations that migrant children form. More specifically, we find that positive misalignment between aspirations and expectations is a driving force for higher effort and better education outcomes of immigrant teenagers in the USA. This force resolves the well-known immigrant paradox. Furthermore, this result is specific to migrant children and does not hold for second-generation migrant pupils.
    Keywords: Add-health database, aspirations, expectations, immigrant paradox, education achievements.
    JEL: I20 I21 I26 J15 F22
    Date: 2020
  4. By: Chilosi, Alberto
    Abstract: In face of the present migratory pressures from the poor towards the richer countries, and of the present framework of international humanitarian law, the costs and dangers of unauthorized migrations appear to act as a rationing device restricting actual migrations to a small fraction of their very large potential. However ethically abhorrent this appears to be, in practice it is the only effective limiting factor to mass immigration that is allowed by international law. Perhaps something is wrong with international law...
    Keywords: Migrations, International Humanitarian Law
    JEL: J61
    Date: 2021–04–02
  5. By: Dipoppa Dipoppa (Stanford University); Guy Grossman (University of Pennsylvania); Stephanie Zonszein (University of Pennsylvania)
    Abstract: Covid-19 caused a significant health and economic crisis, a condition identified as conducive to stigmatization and hateful behavior against minority groups. It is however unclear whether the threat of infection triggers violence in addition to stigmatization, and whether a violent reaction can happen at the onset of an unexpected economic shock before social hierarchies can be disrupted. Using a novel database of hate crimes across Italy, we show that (i) hate crimes against Asians increased substantially at the pandemic onset, and that (ii) the increase was concentrated in cities with higher expected unemployment, but not higher mortality. We then examine individual, local and national mobilization as mechanisms. We find that (iii) local far-right institutions motivate hate crimes, while we find no support for the role of individual prejudice and national discourse. Our study identifies new conditions triggering hateful behavior, advancing our understanding of factors hindering migrant integration.
    Keywords: Italy; Hate Crimes; Intergroup violence; Prejudice; Economic crisis
    JEL: D74 D91 G01 P46
    Date: 2021–02
  6. By: Satoshi Shimizutani; Eiji Yamada
    Abstract: Tajikistan’s economy hinges heavily on remittance inflows mainly from Russia that have exceeded a quarter of annual GDP in recent years. The COVID-19 pandemic is likely to have adverse effects on the economy through damage to migration and remittances. We use a unique monthly household panel dataset that covers the period both before and after the outbreak to examine the impacts of COVID-19 on a variety of household welfare outcomes. We provide several brand-new findings. First, the adverse effects of the pandemic were particularly pronounced in April and May in 2020 but gradually diminished afterward, with some indicators leveling out in autumn. Second, in contrast to expectation, the pandemic had a sharp but only transitory effect on the stock of migrants working abroad in the spring. Some expected migrants were forced to remain in their home country during the border closures, while some of the incumbent migrants expecting to return were not able to do so, and remained employed in their destination countries. Both departures and returns started to increase again from summer. Employment and remittances of the migrants quickly recovered to levels seen in previous years, after a sharp decline in April and May. Third, regression analyses reveal that both migration and remittances have helped to mitigate the negative economic outcomes at home during the “with-COVID-19” period, suggesting that they served as a form of insurance. Overall, the unfavorable effects of the COVID-19 pandemic were severe and temporary right after the outbreak, but households with migrants were more resilient against the pandemic.
    Keywords: COVID-19, remittance, migration, Tajikistan, household welfare
    Date: 2021–01–19
  7. By: Jamie T. Mullins; Prashant Bharadwaj
    Abstract: Do people move as a result of temperature shocks? Documenting weather as a push factor for migration is crucial for informing policy related to climate change and adaptation. This paper studies the impacts of high-temperature days on out-migration from counties in the US. We find that outmigration responds to long-term variation in temperatures, but not to the short-term temperature variations that are commonly leveraged in the literature. We provide evidence consistent with the idea that the effect of long-term variation in temperature is driven by changes in expectations regarding future conditions, and specifically climate change.
    JEL: Q0
    Date: 2021–03
  8. By: Toshihiro Okubo (Faculity of Economics, Keio University)
    Abstract: This paper examines the factors affecting Japanese attitudes toward immigration. Using individual-level survey data, we investigate the impact of both economic/socioeconomic (cognitive) and noneconomic (or noncognitive) factors, the latter including behavioral bias, communication skills, social stance and subjective well-being. The results indicate that individualsthat are male, richer, more educated, younger and from smaller families tend to agree with immigration. More importantly, noneconomic factors also matter, with those that have lower time preference, better English language skills and overseas experience tending to be more positive to the perception of immigration. In addition, individuals trusting neighborhoods rather than the government, that make donations to society and that keep in good health tend to be more positive toward immigration.
    Keywords: Immigration, Non-cognitive factors, Household Survey, Japan
    JEL: F16 F22
    Date: 2021–03–28
  9. By: Bargain, Olivier (University of Aix-Marseille II); Stephane, Victor (GATE, University of Lyon); Valette, Jérôme (CES, University of Paris)
    Abstract: Using information on actual ballots rather than survey data, we investigate the impact of immigration on both electoral outcomes and immigrant-related motives underlying political preferences. We take advantage of 94 votes, namely 54 policy propositions and 40 elections for candidates, that took place in Californian general elections between 2010 and 2018. We first analyze how the share of immigrants at the census tract level affects electoral outcomes. We find that a rise in immigration is associated with a decrease in people's support for the Democratic party and for liberal measures. Using proposition topics, we show that this effect is driven by policies pertaining to redistribution, public good provision and justice/crime, while other propositions, less directly related to immigration are not impacted. The effect is stronger when immigrants are less assimilated and originate from poor and culturally distant countries.
    Keywords: immigration, electoral outcomes
    JEL: F22 D31
    Date: 2021–03
  10. By: Mobarak, Ahmed Mushfiq (Yale University); Sharif, Iffath (World Bank); Shrestha, Maheshwor (World Bank)
    Abstract: We follow 3,512 (of 1.4 million) applicants to a government lottery that randomly allocated visas to Bangladeshis for low-skilled, temporary labor contracts in Malaysia. Most lottery winners migrate, and their remittance substantially raises their family's standard of living in Bangladesh. The migrant's absence pauses demographic changes (marriage, childbirth, household formation), and shifts decision-making power towards females. Migration removes enterprising individuals, lowering household entrepreneurship, but does not crowd out other family members' labor supply. One group of applicants were offered deferred migration that never materialized. Improved migration prospects induce pre-migration investments in skills that generate no returns in the domestic market.
    Keywords: government-intermediated international migration
    JEL: F22 O12 O15
    Date: 2021–03
  11. By: Tushar Bharati (Business School, The University of Western Australia); Wina Yoman (Bain & Company)
    Abstract: We study the labor market effects of domestic migration in Indonesia on the employment outcomes of the natives and the migrants. To address the endogeneity of migrants’ settlement decisions, we use the information on the historical migration patterns from the Indonesian censuses to construct an internal migration version of the Bartik shift-share instrument. The instrument, used widely in the study of international migration, is based on the observation that even within countries, migrants tend to move to regions with a large migrant population from their region of origin. However, if the migration patterns are unchanged over time, past migration may affect current labor market outcomes directly, violating the exclusion restriction. To overcome this, we use a multi-instrument approach that lets us account for the long-term effects of migration separately. We find that internal migration is associated with an increase in migrant employment and a decrease in native employment. Less-educated natives in loweducation regencies are most-affected. The findings suggest that policies aiming to minimize the adverse effects of internal migration should aim at improving the human capital of natives.
    Keywords: shift-share instrument, internal migration, employment, natives
    JEL: C36 E24 J61 O15 R23
    Date: 2021
  12. By: Philip J. O'Connell (UCD Geary Institute for Public Policy, University College Dublin)
    Abstract: This working paper is the Irish report to the OECD Expert Group on Migration. As such, the focus of the report is largely shaped by the reporting requirements for the preparation of the annual OECD International Migration Outlook. The purpose of the paper is to outline major developments and trends in migration and integration data and policy. The principal reference year is 2019, although information relating to early 2020 is included where available and relevant. The Executive Summary provides an overview of the main findings of the report. Section 2 discusses the main developments in migration and integration policy in Ireland in 2019. Section 3 discusses the statistics on inward and outward migration movements. Section 4 examines trends in the population. Migration and the labour market are discussed in Section 5.
    Date: 2021–03–12

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