nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2023‒05‒08
six papers chosen by
Yuji Tamura
La Trobe University

  1. Immigration and the Slope of the Labor Demand Curve: The Role of Firm Heterogeneity in a Model of Regional Labor Markets By Andrea Ariu; Tobias Müller; Tuan Nguyen
  2. In and Out of Privileged and Disadvantaged Neighborhoods in Sweden – On the Importance of Country of Birth By Gustafsson, Björn Anders; Österberg, Torun
  3. Discrimination on the Child Care Market: A Nationwide Field Experiment By Henning Hermes; Philipp Lergetporer; Fabian Mierisch; Frauke Peter; Simon Wiederhold
  4. Immigrant assimilation in health care utilisation in Spain By Zuleika Ferre; Patricia Triunfo; Jos\'e-Ignacio Ant\'on
  5. State Taxation of Nonresident Income and the Location of Work By David R. Agrawal; Kenneth Tester
  6. COVID-19 Working Paper: Migration, Local Mobility, and the spread of COVID-19 in Rural America By Nelson, Peter; Cromartie, John

  1. By: Andrea Ariu; Tobias Müller; Tuan Nguyen
    Abstract: In this paper, we provide new explanations for the puzzling findings in the literature that migrants do not decrease natives’ wages, and that skilled immigration can actually increase them. We develop a model with regional labor markets and heterogeneous firms in which workers of different skill levels are imperfect substitutes, but for a given skill level, natives and migrants are perfect substitutes within a firm. In this setting, a skilled labor supply shock due to immigration has two consequences. First, it induces skill-intensive firms and skill-abundant regions to expand. These across-firm and across-region reallocations reduce the within-firm and within-region substitution between skilled and unskilled workers, thus limiting relative wage adjustments. Second, the average native’s wage can be partially sheltered from the negative effect of immigration depending on the geographical settlement patterns of immigrants. Both mechanisms make natives and migrants appear as imperfect substitutes at the aggregate level. Quantitatively, our simulations show that the negative impact of immigration on natives' wage is halved when the across-firm and across-region reallocation mechanisms are at work. Finally, both theory and simulations show that when these mechanisms are coupled with human-capital externalities that are skill-neutral at the firm level but skill-biased on aggregate, skilled immigration can increase absolute and relative skilled wages. Therefore, firm heterogeneity, local labor markets, and human-capital externalities are crucial for understanding the impact of immigration on natives’ wages.
    Keywords: immigration, firm heterogeneity, wages
    JEL: F22 J61 J31
    Date: 2023
  2. By: Gustafsson, Björn Anders (University of Gothenburg); Österberg, Torun (University of Gothenburg)
    Abstract: Moves into and out of privileged neighborhoods as well as moves into and out of disadvantaged neighborhoods in metropolitan Sweden are studied using register data on all moves by adults that took place between 2004 and 2006. Based on estimated multivariate models, we find that, for all four types of moves, age, education, household income, household composition and its changes, as well as labor market status and its changes, matter. However, in addition, where the person was born can matter, as, with some exceptions, foreign-born people are less likely than natives with the same characteristics to move into a privileged neighborhood. Furthermore, foreign-born are typically less likely than natives with the same characteristics to move out of the metropolitan regions. However, considerable heterogeneity in probabilities to move between those born in different categories of countries is found. Adults born in high-income countries are, in many cases, moving similarly to natives with the same characteristics, while this is typically not found among people born in low-income countries. The latter might be due to fewer assets, lesser social capital, discrimination in the housing market or in housing finance, or by choice.
    Keywords: residental mobility, neighbourhoods, immigrants, Sweden
    JEL: J15 J61 R23
    Date: 2023–03
  3. By: Henning Hermes; Philipp Lergetporer; Fabian Mierisch; Frauke Peter; Simon Wiederhold
    Abstract: emails from fictitious parents to > 18, 000 early child care centers across Germany, asking if there is a slot available and how to apply. Randomly varying names to signal migration background, we find that migrants receive 4.4 percentage points fewer responses. Responses to migrants also contain substantially fewer slot offers, are shorter, and less encouraging. Exploring channels, discrimination against migrants does not differ by the perceived educational background of the email sender. However, it does differ by regional characteristics, being stronger in areas with lower shares of migrants in child care, higher right-wing vote shares, and lower financial resources. Discrimination on the child care market likely perpetuates existing inequalities of opportunities for disadvantaged children.
    Keywords: child care, discrimination, information provision, inequality, field experiment
    JEL: J13 J18 J22 C93
    Date: 2023–04
  4. By: Zuleika Ferre; Patricia Triunfo; Jos\'e-Ignacio Ant\'on
    Abstract: Abundant evidence has tracked the labour market and health assimilation of immigrants, including static analyses of differences in how foreign-born and native-born residents consume health care services. However, we know much less about how migrants' patterns of health care usage evolve with time of residence, especially in countries providing universal or quasi-universal coverage. We investigate this process in Spain by combining all the available waves of the local health survey, which allows us to separately identify period, cohort, and assimilation effects. We find that the evidence of health assimilation is limited and solely applies to migrant females' visits to general practitioners. Nevertheless, the differential effects of ageing on health care use between foreign-born and native-born populations contributes to the convergence of utilisation patterns in most health services after 20 years in Spain. Substantial heterogeneity over time and by region of origin both suggest that studies modelling future welfare state finances would benefit from a more thorough assessment of migration.
    Date: 2023–04
  5. By: David R. Agrawal; Kenneth Tester
    Abstract: Prior studies show that taxes matter for the residential locations of high-income earners. But, states raise a significant share of revenue from nonresidents. Using variation in state tax rates, we provide causal evidence on the effect of the net-of-tax rate on the location of labor supply for professional golfers. State taxes induce high-income earners to shift employment to low-tax states without a residence change. The elasticity of working in a state is 0.34, and consistent with superstar phenomenon, increases with earnings. Our results suggest a novel margin of mobility responses for top-earners: the spatial relocation of labor supply by nonresidents.
    Keywords: state taxes, superstars, taxing the rich, avoidance, mobility, high-frequency labor supply
    JEL: J22 J61 H26 H73 R50
    Date: 2023
  6. By: Nelson, Peter; Cromartie, John
    Abstract: This paper examines how movement between and within communities was linked to the initial arrival and spread of Coronavirus (COVID-19) infections into and through nonmetropolitan (nonmetro) counties. Drawing on data from governmental and non-governmental sources, the analysis reveals patterns of hierarchical diffusion, with COVID-19 infections quickly spreading to progressively smaller places during the first 3 months of 2020. COVID-19 arrived earlier in nonmetro counties with stronger migration ties to metro regions. Once present in a nonmetro county, the infection spread more quickly in those where populations were less able to limit day-to-day movements, and overall nonmetro counties were less able to limit day-to-day mobility compared to metro counties. From April through June 2020, counties where mobility remained high (similar to pre-pandemic levels) showed COVID-19 infection rates twice those of counties with greater reductions in day-to-day mobility. While infection rates increased across all nonmetro counties through summer 2020, the gap persisted between counties with reduced local mobility and those with high mobility. These findings suggest that in the absence of medical interventions (e.g., vaccines and treatment), limiting movement between and within places may slow the spread of highly contagious viruses, and certain types of places may be less able to implement these nonmedical tactics and may therefore be at greater risk in future pandemics. The analysis also suggests that more risk-prone communities may benefit from more robust testing programs.
    Keywords: Community/Rural/Urban Development, Environmental Economics and Policy, Health Economics and Policy
    Date: 2022–11–02

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