nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2021‒08‒30
twelve papers chosen by
Yuji Tamura
La Trobe University

  1. Train drain? Access to skilled foreign workers and firms' provision of training By Maria Esther Oswald-Egg; Michael Siegenthaler
  2. The Value of Formal Host-Country Education for the Labour Market Position of Refugees: Evidence from Austria By Lars Ludolph
  3. Child Education-Induced Migration and Its Impact on the Economic Behaviors of Migrated Households in China By Yan, Weibo; Nie, Peng
  4. Modern Slavery – An Empirical Analysis By Willert, Bianca
  5. Refugees and Host State Security: An Empirical Investigation of Rohingya Refuge in Bangladesh By Sarwar J. Minar
  6. The changing dynamics of HIV/AIDS during the Covid-19 pandemic in the Rohingya refugee camps in Bangladesh a call for action By Muhammad Anwar Hossain; Iryna Zablotska-Manos
  7. COVID-19, Irregular Migration and Asymmetrical Dependency By Nasir Iqbal; Fahd Zulfiqar
  8. De Facto Immigration Enforcement, ICE Raid Awareness, and Worker Engagement By Amuedo-Dorantes, Catalina; Antman, Francisca M.
  9. Media Coverage of Immigration and the Polarization of Attitudes By Sarah Schneider-Strawczynski; Jérôme Valette
  10. Environmental Culture and Economic Complexity By Lapatinas, Athanasios; Litina, Anastasia; Zanaj, Skerdilajda
  11. Climate shocks, agriculture, and migration in Nepal: Disentangling the interdependencies By Aslihan Arslan; Eva-Maria Egger; Erdgin Mane; Vanya Slavchevska
  12. Immigration and Local Business Dynamics: Evidence from U.S. Firms By Parag Mahajan

  1. By: Maria Esther Oswald-Egg; Michael Siegenthaler
    Abstract: Does better access to skilled workers reduce firms' willingness to provide general skills training to unskilled workers? We analyze how the gradual opening of the Swiss labor market to workers from the European Union affected the number of apprenticeship positions that firms provide. We exploit that the availability of skilled workers increased more in firms close to the border because they gained unrestricted access to cross-border workers from neighboring countries. Our Difference-in-Differences estimates suggest that firm-provided training and access to skilled workers are not necessarily substitutes: opening the borders did not have a statistically significant effect on apprenticeship provision. We show theoretically and empirically that the small impact was the consequence of two opposing effects: the greater availability of skilled workers reduced firms' incentive to train because the cost of hiring external labor fell. Positive impacts on firm growth worked in the opposite direction.
    Keywords: labor demand, skilled immigration, firm-provided training, apprenticeships, vocational education and training, free movement of workers, cross-border workers, recruitment, immigration policy, labor mobility, hiring costs
    JEL: J24 J63 M53
    Date: 2021–08
  2. By: Lars Ludolph
    Abstract: Refugees hosted across the developed world often work in low-quality jobs, regardless of education previously attained in their country of origin. In this paper, I analyse the long-term value of formal host-country education for refugees using the example of forcefully displaced Bosnians who arrived in Austria during the 1992-1995 Bosnian war. Deploying 22 years of Austrian microcensus data, I exploit the age at the time of forced migration as an instrument for the probability of receiving host-country instead of origin country education to recover local average treatment effects of education attained in Austria vis-à-vis Bosnia on labour market outcomes for refugees aged around schooling thresholds. These estimates show that attaining a formal degree in the host-country significantly reduces the probability of work below educational attainment and low-skill employment over the entire observation period. Income differences between Austrian and Bosnian degree holders are visible after more than two decades of stay in Austria. The discount on Bosnian education declines over time for men but not for women, suggesting that host-country degrees are particularly important to groups that faced cultural barriers to quality employment in their country of origin.
    Keywords: refugees, labour market integration, education
    Date: 2021
  3. By: Yan, Weibo (Zhongnan University of Economics and Law); Nie, Peng (Xi’an Jiaotong University)
    Abstract: Using the 2011-2013 China Migrants Dynamic Survey, this paper utilizes the quarter of the year in which a child was born as an instrumental variable to measure child education shock and explores its impact on migrated households. We only find significant education-induced migration among boys, which we attribute to son preference in China. Due to child education-induced migration, the per capita household consumption increases by 56.7%, the savings rate decreases by 40.3%, and remittances sent home decline by about 1.3 monthly household incomes, however, there are no effects on income, food consumption, and house rent. After exploring the mechanisms underlying child education-induced migration, we find that children migrate with their parents for a better education in urban areas. Because of the closure and consolidation of rural primary schools, children are forced to migrate due to their education needs. The accessibility of primary schools in urban areas is also responsible for migration decisions regarding children. This paper facilitates understanding of how Hukou influences gender inequality in China. We also provide evidence to show that the segregation of the education system through Hukou is a possible explanation for the low consumption rate of migrants.
    Keywords: education-induced migration, Hukou, son preference, economic behaviors
    JEL: O15 I28 D14
    Date: 2021–08
  4. By: Willert, Bianca
    Abstract: Contemporarily, modern slavery represents one of the most serious human rights violations. Although most countries officially abolished slavery and ratified the 1926 Slavery Convention of the League of Nations, slavery and slave like practices still exist in various forms throughout the world. This paper addresses why coercive relationships persist today and investigates how political decision-making, institutional environment and coercive labor practices are interlinked. Moreover, we investigate the interplay between domestic anti-slavery laws and the extent of modern slavery. This paper identifies social and economic determinants of modern slavery using a novel dataset. The panel data contain information on 189 countries and territories from 2002 – 2016 for various types of exploitation of adults and children. We study determinants of modern slavery using cluster analysis and fit a fixed-effects model to explain which factors drive exploitation. We find that different types of exploitation are driven by different factors. In addition, we show that slave-sending and slave-receiving countries differ significantly. We study transnational human trafficking and identify which social and economic factors determine this specialization. Moreover, we fit a model using Poisson regression to study why some countries detect victims, originating form more countries, than others do.
    Keywords: modern slavery,human trafficking,exploitation,human rights
    JEL: J47 K42 O15
    Date: 2021
  5. By: Sarwar J. Minar
    Abstract: Conventional wisdom suggests that large-scale refugees pose security threats to the host community or state. With massive influx of Rohingyas in Bangladesh in 2017 resulting a staggering total of 1.6 million Rohingyas, a popular discourse emerged that Bangladesh would face severe security threats. This article investigates the security experience of Bangladesh in case of Rohingya influx over a three-year period, August 2017 to August 2020. The research question I intend to address is, 'has Bangladesh experienced security threat due to massive Rohingya influx?' If so in what ways? I test four security threat areas: societal security, economic security, internal security, and public security. I have used newspaper content analysis over past three years along with interview data collected from interviewing local people in coxs bazar area where the Rohingya camps are located. To assess if the threats are low level, medium level, or high level, I investigated both the frequency of reports and the way they are interpreted. I find that Bangladesh did not experience any serious security threats over the last three years. There are some criminal activities and offenses, but these are only low-level security threat at best. My research presents empirical evidence that challenges conventional assertions that refugees are security threats or challenges to the host states.
    Date: 2021–08
  6. By: Muhammad Anwar Hossain; Iryna Zablotska-Manos
    Abstract: COVID-19 pandemic has affected each and every country's health service and plunged refugees into the most desperate conditions. The plight of Rohingya refugees is among the harshest. It has severely affected their existing HIV/STI prevention and management services and further increased the risk of violence and onward HIV transmission within the camps. In this commentary, we discuss the context and the changing dynamics of HIV/AIDS during COVID-19 among the Rohingya refugee community in Bangladesh. What we currently observe is the worst crisis in the Rohingya refugee camps thus far. Firstly, because of being displaced, Rohingya refugees have increased vulnerability to HIV, as well as to STIs and other poor health outcomes. Secondly, for the same reason, they have inadequate access to HIV testing treatment and care. Not only because of their refugee status but also because of the poor capacity of the host country to provide services. Thirdly, a host of complex economic, socio-cultural and behavioural factors exacerbate their dire situation with access to HIV testing, treatment and care. And finally, the advent of the COVID-19 pandemic has changed priorities in all societies, including the refugee camps. In the context of the unfolding COVID-19 crisis, more emphasis is placed on COVID-19 rather than other health issues, which exacerbates the dire situation with HIV detection, management, and prevention among Rohingya refugees. Despite the common crisis experienced by most countries around the world, the international community has an obligation to work together to improve the life, livelihood, and health of those who are most vulnerable. Rohingya refugees are among them.
    Date: 2021–08
  7. By: Nasir Iqbal (Pakistan Institute of Development Economics, Islamabad.); Fahd Zulfiqar (Pakistan Institute of Development Economics, Islamabad.)
    Abstract: This study explores the process of irregular migration that drives people to opt for illegal channels to migrate. The study further examines the impact of the COVID-19 pandemic on the socio-economic vulnerabilities of irregular migrant workers. We find that due to COVID-19, irregular migrants suffered job losses, with only a few cases of job restoration. Their predicament is compounded given their questionable legal status, economic vulnerabilities, the stance of governments of the host and origin countries, vulnerability to poverty, and resort only to social capital as social security. We suggest that the governments should intervene to facilitate irregular migrants during pandemics.
    Keywords: COVID-19; Irregular Migration; Pakistan; Europe
    Date: 2021
  8. By: Amuedo-Dorantes, Catalina (University of California, Merced); Antman, Francisca M. (University of Colorado, Boulder)
    Abstract: We explore whether fear of apprehension affects immigrants' labor market engagement by examining how ICE removals due to immigration violations and increased awareness of immigration raids impact their labor market outcomes. We find that ICE deportations are associated with reductions in the labor force participation and employment of likely undocumented immigrants when compared to similarly skilled foreign-born U.S.citizens. Effects are particularly strong among women, especially those with children, as well as in industries likely targeted by ICE raids. Controlling for perceived threats and de jure immigration policies has little impact on these results.
    Keywords: undocumented immigrants, immigration raids, labor supply
    JEL: J15 J61 J2 J3
    Date: 2021–08
  9. By: Sarah Schneider-Strawczynski (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jérôme Valette (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper investigates the extent to which media impact immigration attitudes by modifying the salience of this topic. We measure the salience of immigration using original data including all the news covered on the main French national television evening news programs between 2013 and 2017. We combine this information with individual panel data that enable us to link each respondent to his/her preferred TV channel for political information. This allows us to address ideological self-selection into channels with individual-channel fixed effects. In contrast to prior evidence in the literature, we do not find that an increase in the salience of immigration necessarily drives natives' attitudes in a specific direction. Instead, our results suggest that it increases the polarization of natives by pushing individuals with moderate beliefs toward the two extremes of the distribution of attitudes. We show that these results are robust to controlling for differences in the framing of immigration-related subjects across TV channels. Conversely to priming, framing is found to drive natives' attitudes in very specific directions.
    Keywords: Immigration,Media,Polarization
    Date: 2021–08
  10. By: Lapatinas, Athanasios; Litina, Anastasia; Zanaj, Skerdilajda
    Abstract: This paper establishes economic complexity as a powerful predictor of environmental attitudes. While the economic complexity index (ECI) has been associated with a series of economic outcomes, yet there has not been a link in the literature between ECI and environmental attitudes. This research pushes forward the hypothesis that economic complexity shapes cultural values and beliefs. We use a multilevel empirical analysis that associates aggregate values of the ECI, at the country level, with individual responses related to attitudes towards the environment. Our findings suggest that more complex economies are associated with: i) a higher likelihood to participate voluntarily in organizations targeting environmental protection; and ii) higher willingness to pay for the environment. To further reinforce our findings by ensuring identification we replicate the benchmark analysis using as a proxy of a country's level of economic complexity, the average ECI of the neighbouring countries (weighted by population and/or volume of trade) . With a similar intention, i.e., to mitigate endogeneity concerns as well as to further frame our findings as ``the cultural implications of ECI'' we replicate our analysis with a sample of second generation immigrants. The immigrant analysis, suggests that the level of economic complexity of the parents' country of origin, has a long-lasting effect on second generation immigrants' attitudes related to the environment. Because humankind’s attitudes and actions are of key importance for a sustainable future, a better understanding as to what drives environmental attitudes appears critical both for researchers and policy makers.
    Keywords: Economic Complexity Index; Environmental Attitudes; Multilevel analysis; Migration
    JEL: O3 Z1
    Date: 2020–12–31
  11. By: Aslihan Arslan; Eva-Maria Egger; Erdgin Mane; Vanya Slavchevska
    Abstract: Climate change is expected to increase the risk in agricultural production due to increasing temperatures and rainfall variability. Smallholders can adjust by diversifying income sources, including through migration. Most existing studies investigate whether households send a migrant after experiencing weather shocks, but the literature lacks evidence on migration as an ex-ante measure. In this paper, we disentangle the direct effect of weather shocks on income from agriculture from the effect of changing weather patterns over a few years on migration as a diversification strategy.
    Keywords: Climate change, Migration, Agriculture, Simultaneous equations, Nepal
    Date: 2021
  12. By: Parag Mahajan
    Abstract: This paper finds that establishment entry and exit—particularly the prevention of establishment exit—drive immigrant absorption and immigrant-induced productivity increases in U.S. local industries. Using a comprehensive collection of confidential survey and administrative data from the Census Bureau, it shows that inflows of immigrantworkers lead to more establishment entry and less establishment exit in local industries. These relationships are responsible for nearly all of long-run immigrant-induced job creation, with 78 percent accounted for by exit prevention alone, leaving a minimal role for continuing establishment expansion. Furthermore, exit prevention is not uniform: immigrant inflows increase the probability of exit by establishments from low productivity firms and decrease the probability of exit by establishments from high productivity firms. As a result, the increase in establishment count is concentrated at the top of the productivity distribution. A general equilibrium model proposes a mechanism that ties immigrantworkers to high productivity firms and shows how accounting for changes to the firm productivity distribution can yield substantially larger estimates of immigrant-generated economic surplus than canonical models of labor demand.
    Keywords: Immigration, Business Dynamics, Job Creation, Productivity, Firm Heterogeneity
    JEL: J23 J61 L11 F22
    Date: 2021–08

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