nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2022‒08‒15
nine papers chosen by
Yuji Tamura
La Trobe University

  1. Cultural Origins of Investment Behavior By Andreas Ek; Gunes Gokmen; Kaveh Majlesi
  2. Return migration and entrepreneurship in Cameroon By Sévérin Tamwo; Ghislain Stéphane Gandjon Fankem; Dieudonné Taka
  3. Market Participation:comparing the secondgeneration of migrants fromEU countries and East Europe By Rinaldo Naci
  4. Persecution and Migrant Self-Selection: Evidence from the Collapse of the Communist Bloc By Ran Abramitzky; Travis Baseler; Isabelle Sin
  5. Refugees, Right-Wing Populism and Propaganda: Evidence from the Italian Dispersal Policy By Francesco Campo; Sara Giunti; Mariapia Mendola
  6. Gender Gap in Education as a Portable Cultural Element: Evidence from First and Second Generation Immigrants By tavassoli, nahid; noghani, farzaneh; noghanibehambari, hamid
  7. Second-generation immigrants and native attitudes toward immigrants in Europe By Oscar Barrera; Isabelle Bensidoun; Anthony Edo
  8. Emigration and Tax Revenue By Yuanyuan Gu; Jhorland Ayala-García
  9. Attrition from Administrative Data: Problems and Solutions with an Application to Postsecondary Education By Andrew Foote; Kevin M. Stange

  1. By: Andreas Ek (Lund University); Gunes Gokmen (Lund University); Kaveh Majlesi (Monash University, Lund University, IZA, and CEPR)
    Abstract: There are large cross-country differences in the portfolio composition of individual investors. In this paper, we study the role of cultural heritage in explaining these differences by combining data on the asset allocation of second-generation immigrants in Sweden with the cultural attributes of their parents' countries of origin. Descendants of more risk-loving and less patient cultures take more idiosyncratic risk by keeping a higher share of their financial wealth in directly held stocks. They are also less likely to delegate their equity investment, as they assign a lower share of their wealth to mutual funds. We show that these findings are not driven by the selection of migrating parents, other country of origin attributes, or individual socio-economic characteristics. Our findings also provide an alternative explanation for under-diversification and lack of delegation among many individual investors.
    Keywords: culture, cultural transmission, delegation, diversification, investment behaviour
    JEL: G11 G40 G50 G51 Z10
    Date: 2022–07
  2. By: Sévérin Tamwo; Ghislain Stéphane Gandjon Fankem; Dieudonné Taka
    Abstract: In this paper, we examine the determinants of the entrepreneurial behaviour of returnees to Cameroon based on original survey data from 2012. Contrary to the existing literature, we focus on the skills received from abroad without omitting the effect of savings. We distinguish between three types of competences related to qualifications. We also differentiate between the probability of starting a business in the primary sector and the probability of starting a business in the tertiary sector.
    Keywords: Return migration, Skills, Entrepreneurship, Probit model, Endogeneity, Cameroon
    Date: 2022
  3. By: Rinaldo Naci (Department of Economics, University Of Venice CÃ Foscari)
    Abstract: This paper compares and evaluates the second generation of immigrants participating in the financial market with respect to their country of origin and in comparison to natives. Financial market participation differs significantly across countries, and the cultural dimensions could be a potential factor for that. In order to assess if this dimension matters, we exploited the influence that the socialist regime has had on the citizen of the East European countries. These individuals have grown a particular institutional context that has shaped a different culture regarding Western European countries. We rely on this heterogeneity and its intergenerational transmission to look for differences in the financial market participation. We show how simple theoretical models include in their specification coefficient for risk aversion, time preference, and trust. They can be the channel through which the cultural dimensions matter in the financial market participation. We show no difference in the financial market participation between the second generation of immigrants from EU countries and natives. At the same time, this difference is present when we compare them to the second generation from East European countries. Risk aversion and labor income seems to play the primary role in this heterogeneity in the financial market participation.
    Keywords: Financial market, Portfolio choice, Immigration, Culture, SHARE
    JEL: G11 G41 J15
    Date: 2022
  4. By: Ran Abramitzky; Travis Baseler; Isabelle Sin
    Abstract: How does persecution affect who migrates? We analyze migrants’ self-selection out of the USSR and its satellite states before and after the collapse of Communism using census microdata from the three largest destination countries: Germany, Israel, and the United States. We find that migrants arriving before and around the time of the collapse (who were more likely to have moved because of persecution) were more educated and had better labor market outcomes in the destination than those arriving later. This change is not fully explained by the removal of emigration restrictions in the Communist Bloc. Instead, we show that this pattern is consistent with more positive self-selection of migrants who are motivated by persecution. When the highly educated disproportionately forgo migrating to enjoy the amenities of their home country, persecution can induce them to leave.
    JEL: F22 J6 N30 N32 N34
    Date: 2022–07
  5. By: Francesco Campo; Sara Giunti; Mariapia Mendola
    Abstract: This paper examines how the 2014-2017 ‘Refugee Crisis’ in Italy affected voting behavior and the rise of right–wing populism in national Parliamentary elections. We collect novel administrative data across all Italian municipalities and leverage exogenous variation in refugee resettlement 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: Immigration, Refugee Crisis, Voting Behavior, Dispersal Policy, Propaganda.
    JEL: D72 F22 O15 P16
    Date: 2022–04
  6. By: tavassoli, nahid; noghani, farzaneh; noghanibehambari, hamid
    Abstract: This paper illustrates the intergenerational transmission of the gender gap in education among first and second-generation immigrants. Using the Current Population Survey (1994-2018), we find that the difference in female-male education persists from the home country to the new environment. A one standard deviation increase of the ancestral country’s female-male difference in schooling is associated with 17.2% and 2.5% of a standard deviation increase in the gender gap among first and second generations, respectively. Since gender perspective in education uncovers a new channel for cultural transmission among families, we interpret the findings as evidence of cultural persistence among first generations and partial cultural assimilation of second generations. Moreover, Disaggregation into country-groups reveals different paths for this transmission: descendants of immigrants of lower-income countries show fewer attachments to the gender opinions of their home country. Average local education of natives can facilitate the acculturation process. Immigrants residing in states with higher education reveal a lower tendency to follow their home country attitudes regarding the gender gap.
    Keywords: Gender Gap, Immigration, Human Capital, Education, Assimilation
    JEL: I2 J15 J16
    Date: 2022–06–21
  7. By: Oscar Barrera; Isabelle Bensidoun; Anthony Edo
    Abstract: This paper investigates the role played by immigrants and their children in shaping native attitudes toward immigrants in the European Union. By exploiting the 2017 Special Eurobarometer on immigrant integration, we show that countries with a relatively high share of immigrants are more likely to believe that immigrants are a burden on the welfare system and worsen crime. In contrast, native opinions on the impact of immigration on culture and the labor market are unrelated to the presence of immigrants. We also find that the effects of second-generation immigrants on pro-immigrant attitudes toward security and fiscal concerns are positive (as opposed to first-generation immigrants). Finally, we find no impact of the immigrant share on the attitudes of natives supporting far-left or left political parties, while it is the most negative among respondents affiliated with far-right parties.
    Keywords: Immigration;Second-generation Immigrants;Attitudes toward Immigrants;Public Opinion
    JEL: J15 F22 P16
    Date: 2022–06
  8. By: Yuanyuan Gu; Jhorland Ayala-García
    Abstract: According to the World Migration Report 2020, the number of international migrants increased from 84 million in 1970 to 272 million in 2019, accounting for 3.5% of the world’s population. This paper investigates the aggregated effect of emigration on the tax revenue of sending countries with a focus on developing nations. Using a gravity approach, we construct a time-varying exogenous instrument out of geographic time-invariant dyadic characteristics that allow us to estimate the predicted emigration rate for every country. Then, we follow an instrumental variable approach where we use our predicted emigration rate as an instrument of the observed migration rate. The results show that the predicted emigration rate is a good instrument of the current emigration rate for developing countries, and that there is a positive aggregated effect of emigration on tax revenue of sending countries. The results vary depending on the type of tax: emigration increases goods and services tax revenue, but it decreases income, profit, and capital gains tax revenue. **** RESUMEN: Según el World Migration Report de 2020, el número de migrantes internacionales aumentó de 84 millones en 1970 a 272 millones en 2019, lo que representa el 3,5 % de la población mundial. Este documento investiga el efecto agregado de la emigración en los ingresos fiscales de los países de origen haciendo énfasis en países en vía de desarrollo. Usando un modelo de gravedad, construimos un instrumento exógeno que varía en el tiempo a partir de características diádicas geográficas invariantes en el tiempo, los cuales nos permiten estimar la tasa de emigración predicha para cada país. Luego utilizamos la tasa de emigración predicha como un instrumento de la tasa de migración observada. Los resultados muestran que la tasa de emigración pronosticada es un buen instrumento de la tasa de emigración de los países en desarrollo, y que existe un efecto agregado positivo de la emigración sobre los ingresos fiscales de los países de origen. Los resultados varían según el tipo de impuesto: la emigración aumenta los ingresos fiscales por impuestos sobre bienes y servicios, pero disminuye los ingresos por impuestos sobre la renta, las ganancias y las ganancias de capital.
    Keywords: Emigration, Tax Revenue, Developing Countries, Gravity, emigración, ingresos fiscales, países en desarrollo, gravedad
    JEL: H24 H25 F22 C26
    Date: 2022–07–18
  9. By: Andrew Foote; Kevin M. Stange
    Abstract: This paper examines the bias arising from individuals’ migration from administrative outcome data, with a focus on the labor market consequences of postsecondary education. We find that out-of-state migration is particularly problematic for high-earners, flagship graduates, and certain majors. Consequently, the effect of graduating from a flagship university is 10% higher than one would estimate using in-state earnings exclusively, though the extent of bias differs substantially across contexts. The impact of obtaining a 2-year CTE credential is also understated, as are earnings differences across majors. Approaches to testing for and bounding this bias are considered.
    JEL: I26 J31 J61
    Date: 2022–07

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