nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2021‒10‒11
four papers chosen by
Yuji Tamura
La Trobe University

  1. Do Refugees with Better Mental Health Better Integrate? Evidence from the Building a New Life in Australia Longitudinal Survey By Dang, Hai-Anh H.; Trinh, Trong-Anh; Verme, Paolo
  2. Earnings Inequality and Immobility for Hispanics and Asians: An Examination of Variation Across Subgroups By Randall Akee; Sonya R. Porter; Emilia Simeonova
  3. The effect of Brexit on British workers living in the EU By Ana Venâncio; João Pereira dos Santos
  4. Market Size and Spatial Growth - Evidence from Germany’s Post-War Population Expulsions By Michael Peters

  1. By: Dang, Hai-Anh H.; Trinh, Trong-Anh; Verme, Paolo
    Abstract: Hardly any evidence currently exists on the causal effects of mental illness on refugee labor market outcomes. We offer the first study on this topic in the context of Australia, one of the host countries with the largest number of refugees per capita in the world. Analyzing the Building a New Life in Australia longitudinal survey, we exploit the variations in traumatic experiences of refugees interacted with time as an instrument for refugee mental health. We find that worse mental health, as measured by a one standard deviation increase in the Kessler mental health score, reduces the probability of employment by 14.1% and labor income by 26.8%. We also find some evidence of adverse impacts of refugees' mental illness on their children's mental health and education performance. These effects appear more pronounced for refugees that newly arrive or are without social networks, but they may be ameliorated with government support. Our findings suggest that policies that target refugees' mental health may offer a new channel to improve their labor market outcomes.
    Keywords: refugees,mental health,labor outcomes,instrumental variable,BNLA longitudinal survey,Australia
    JEL: I15 J15 J21 J61 O15
    Date: 2021
  2. By: Randall Akee; Sonya R. Porter; Emilia Simeonova
    Abstract: Our analysis provides the rst disaggregated examination of earnings inequality and immobility within the Hispanic ethnic group and the Asian race group in the U.S. over the period of 2005-2015. Our analysis differentiates between long-term immigrant and native-born Hispanics and Asians relative to recent immigrants to the U.S. (post 2005) and new labor market entrants. Our results show that for the Asian and Hispanic population aged 18-45, earnings inequality is constant or slightly decreasing for the long-term immigrant and native-born populations. However, including new labor market entrants and recent immigrants to the U.S. contributes significantly to the earnings inequality for these groups at both the aggregate and disaggregated race or ethnic group levels. These findings have important implications for the measurement of inequality for racial and ethnic groups that have higher proportions of new immigrants and new labor market entrants in the U.S.
    Keywords: Earnings immobility, earnings inequality, race, ethnicity, data disaggregation
    JEL: J1 J61
    Date: 2021–09
  3. By: Ana Venâncio; João Pereira dos Santos
    Abstract: The effect of Brexit is an important topic in the European and British political agendas. This study examines the perspective of the EU countries, with regards how British citizens working in an EU country reacted to the end of free movement of workers. Employing synthetic control methods and using data from Portugal, we estimate how the behaviour of UK citizens working in Portugal would have evolved if the Remain vote had won the referendum. Our results suggest that the Brexit referendum reduced the number of UK citizens working in Portugal, particularly in the case of non-university educated, male individuals with temporary employment contracts. This reduction is explained by the decrease in the number of incomers. We also find that those UK citizens who were already working in Portugal before Brexit are less likely to leave the country.
    Keywords: Brexit, employment, migration
    JEL: J10 J61 J68
    Date: 2021–09
  4. By: Michael Peters
    Abstract: Virtually all theories of economic growth predict a positive relationship between population size and productivity. In this paper I study a particular historical episode to provide direct evidence for the empirical relevance of such scale effects. In the aftermath of the Second World War about 8m ethnic Germans were expelled from their domiciles in Eastern Europe and transferred to West Germany. This inflow increased the German population by almost 20%. Using variation across counties I show that the settlement of refugees had a large and persistent effect on the size of the local population, manufacturing employment and income per capita. I show that these findings are quantitatively consistent with an idea-based model of spatial growth if population mobility is subject to frictions and productivity spillovers occur locally. The model implies that the refugee settlement increased aggregate income per capita by about 12% after 25 years and that the historical settlement rule triggered persistent industrialization of rural areas.
    JEL: O11 O4 R11
    Date: 2021–10

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