nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2023‒07‒24
thirteen papers chosen by
Yuji Tamura
La Trobe University

  1. Political Backlash to Refugee Settlement: Cultural and Economic Drivers By Francesco Campo; Sara Giunti; Mariapia Mendola; Giulia Tura
  2. Identity assimilation: Impact of conflict and partition on the giving behaviors of refugees and natives in West Bengal By Bhattacharya, Nilanjan; Pakrashi, Debayan; Saha, Sarani; Wang, Liang C.
  3. Fascist ideology and migrant labor exploitation By Mario Carillo; Gemma Dipoppa; Shanker Satyanath
  4. Forced migration, aid effectiveness, and the humanitarian-development nexus: The case of Germany's P4P programme By Stefan Leiderer; Helge Roxin
  5. Poverty dynamics and poverty traps among refugee and host communities in Uganda By Giulia Malevolti; Donato Romano
  6. Finance and Climate Resilience: Evidence from the long 1950s US Drought By Raghuram Rajan; Rodney Ramcharan
  7. Diluted blood still better than water? The beneficial effects of politicians' birthplaces on refugee acceptance By Dang, Hai-Anh H.; Trinh, Trong-Anh
  8. The Benefits and Costs of Guest Worker Programs: Experimental Evidence from the India-UAE Migration Corridor By Suresh Naidu; Yaw Nyarko; Shing-Yi Wang
  9. Migrant Laborer's Optimization Mechanism Under Employment Permit System(EPS): Introducing and Analyzing 'Skill-Relevance-Self Selection' Model By Kwonhyung Lee; Yejin Lim; Sunghyun Cho
  10. Intranational Skill-relevance Model of the Immigrant's Self-selection: Further Evidence of the Stylized Fact from the E-9 Employment Permit System (EPS) By Kwonhyung Lee; Yejin Lim; Sunghyun Cho
  11. The Hidden Divide: School Segregation of Teachers in the Netherlands By Rafiq Friperson; Hessel Oosterbeek; Bas van der Klaauw
  12. New Evidence on the Underrepresentation of Asian Americans in Leadership Positions By Zhu, Maria
  13. Do short-term rentals impact population movements? An analysis in six french urban areas By Lauriane BELLOY

  1. By: Francesco Campo; Sara Giunti; Mariapia Mendola; Giulia Tura
    Abstract: The 2015 refugee crisis in Europe fueled anti-immigration sentiment in receiving areas, with potential unintended consequences for refugee integration. We investigate the heterogeneity of political backlash across Italian municipalities in the aftermath of the crisis and assess the role played by local conditions at the time of refugees’ settlement, distinguishing between baseline economic and cultural factors. By leveraging the quasirandom dispersal policy and using causal forests, we find that the impact of refugee exposure on anti-immigration backlash is significantly higher in more affluent areas, with more bonding social capital. The opposite holds in contexts where there is meaningful intergroup contact with former immigrants (e.g mixed marriages). We exploit this pattern of heterogeneity to evaluate a matching model to optimally assign refugees to locations and deliver policy implications for novel refugee resettlement schemes that minimize anti-immigration backlash.
    Keywords: Refugee Social Integration, Dispersal Policy, Political Preferences.
    JEL: J15 H53 I38
    Date: 2023–06
  2. By: Bhattacharya, Nilanjan; Pakrashi, Debayan; Saha, Sarani; Wang, Liang C.
    Abstract: In regions affected by conflicts, partition, and violence, how does past exposure to such incidences affect attitudes towards members of different social groups? Drawing on the theory of inequity aversion model, we infer that past exposure to conflict and violence can increase an individual's ability to empathize with the ingroup(s) and discriminate against the outgroup(s). We test this hypothesis by conducting a money-giving dictator game and a money-taking dictator game among 794 Hindu Bengali individuals from an Indian-native-born background and an East-Pakistan-refugee background residing in the state of West Bengal in India. Our objective is to study the dominant social identity and identity assimilation of individuals with multiple social affiliations. We find that participants from both native and refugee backgrounds show favoritism towards other Hindus in India by giving them money taken away from Muslims in India, Hindus in Bangladesh, and Muslims in Bangladesh. The favoritism towards other Hindus in India indicates that they are treated as the social ingroup, while the discrimination against the other groups indicates that they are treated as the social outgroups. Participants from refugee families discriminate against Muslims in India more than Hindus in Bangladesh, while participants from native families discriminate against Hindus in Bangladesh more than Muslims in India. The differential treatments across social groups suggest that the Hindu religious affiliation plays a more dominant role than the Indian nationality affiliation in the identity of refugees. Further, we find suggestive evidence of identity assimilation among individuals with a refugee background.
    Keywords: social identity, partition refugees, charitable giving
    JEL: F22 J15 Z12 N3
    Date: 2023
  3. By: Mario Carillo; Gemma Dipoppa; Shanker Satyanath
    Abstract: Official reports from the International Labor Organization have been increasingly highlighting the pervasive presence of forced labor, especially involving migrants, in the developed world. There is, however, little work explaining the demand-side determinants of modern forced labor. We address this gap by focusing on variations in modern forced labor within a single developed country (Italy). Regression discontinuity and triple differences designs show that modern forced labor is strongly associated with prior exposure to the ideology of the Italian Fascist regime (1922-43) which emphasized the subjugation of non-white ethnic groups (the primary subjects of forced labor).
    Keywords: political extremism, ideology, labor coercion, migration
    JEL: J7 J15 J81 O15 P00 Z00
    Date: 2023–06
  4. By: Stefan Leiderer; Helge Roxin
    Abstract: Bridging the gap between humanitarian assistance and development cooperation has been a contentious issue in academia and development practice for decades. Drawing on an evaluation of Germany's 'Partnership for Prospects' initiative, this paper argues that, whilst the supplement of 'peacebuilding' to the nexus (humanitarian-development-peacebuilding [HDP] nexus) brought an important context factor into the discussion in an environment of conflict, it is only of marginal help in a context of forced migration to neighbouring countries of a given conflict.
    Keywords: Forced migration, Conflict, Politics, Humanitarian assistance, Peacebuilding, Refugees, Development
    Date: 2023
  5. By: Giulia Malevolti; Donato Romano
    Abstract: This paper analyses poverty dynamics and checks for the existence of poverty traps among refugee and host communities living close to each other in Uganda. Although some non-linearities emerge in asset dynamics, there is convergence towards one stable equilibrium for the whole sample that suggests the existence of a structural poverty trap. However, households are quite heterogeneous: when analysing refugees and hosts separately, refugees converge to a lower own-group equilibrium than hosts. The household size, its location, the displacement reason as well as the household’s head gender are correlates of lower equilibria. Panel attrition correction and robustness checks confirm these results. Interestingly, social cohesion positively impacts refugees’ asset accumulation while it generally has a negative impact for hosts. From a policy perspective, structural poverty traps are bad news, because ‘standard’ asset transfers would not unlock the trap. More structural approaches aiming at promoting economic growth in the whole area where refugee and host communities live and targeting both communities are needed.
    Keywords: refugees; hosts; asset accumulation; poverty traps; Uganda
    JEL: D31 I32 O12 R23
    Date: 2023
  6. By: Raghuram Rajan; Rodney Ramcharan
    Abstract: We study how the availability of credit shapes adaptation to a climatic shock, specifically, the long 1950s US drought. We find that bank lending, net immigration, and population growth decline sharply in drought exposed areas with limited initial access to bank finance. In contrast, agricultural investment and long-run productivity increase more in drought-exposed areas when they have access to bank finance, even allowing some of these areas to leapfrog otherwise similar areas in the subsequent decades. We also find unequal access to finance can drive migration from drought-hit finance-poor communities to finance-rich communities. These results suggest that broadening access to finance can enable communities to adapt to large adverse climatic shocks and reduce emigration.
    JEL: G0 J0 Q0
    Date: 2023–06
  7. By: Dang, Hai-Anh H.; Trinh, Trong-Anh
    Abstract: In parliamentary systems, elected representatives often have power to direct resources to their preferred areas. Foreign-born politicians, those who were born in countries other than the country where they hold policymaking positions, may exhibit a strong preference for refugees. We provide the first empirical evidence on the relationship between politicians' birthplaces and refugee acceptance. Employing an instrumental variable approach to analyze a newly-constructed panel data set comprising 17 destination countries in the OECD during 2002-2019, we find that countries with higher shares of foreign-born politicians have higher recognition rates and offer more aid to refugees. Our findings remain robust for different outcome variables, model specifications, and birthplaces' income levels. Some evidence also suggests that countries with more foreign-born politicians affiliated with left-wing parties tend to show more favouritism toward refugees. Finally, we find that favourable asylum policy and positive public opinion are possible explanations for increased acceptance of refugees.
    Keywords: foreign-born politician, refugee acceptance, recognition rate, refugee aid, asylum policy
    JEL: F22 F35 D72 O15
    Date: 2023
  8. By: Suresh Naidu; Yaw Nyarko; Shing-Yi Wang
    Abstract: We estimate the individual returns to temporary migration programs using a randomized experiment with several thousand job seekers in India applying to guest worker jobs in the United Arab Emirates (UAE). Working with construction companies and the UAE Ministry of Labor, we randomized job offers to potential migrant workers at recruitment sites. We measured effects on labor market outcomes, well-being, social relationships, and work satisfaction, as well as on labor intermediation costs, assets and debt. We find that workers who received the randomized offer experienced 30% higher earnings, and those who take up the offer to migrate to the UAE doubled their compensation. However, they also paid substantial upfront costs to labor intermediaries, financed by additional debt, that reduced take-home pay by about 10%. Migrants also reported a significant fall in subjective well-being, driven by increases in physical pain, effort, and heat. There were no significant effects on loneliness or other dimensions of well-being. Our finding of negative effects on well-being is consistent with the large share of workers offered jobs who did not migrate to the UAE. Extrapolating using a linear marginal treatment effects framework to workers who decline the UAE job offer, we find large and positive pecuniary returns to migration, even including intermediary fees, but even larger non-pecuniary costs.
    JEL: J6
    Date: 2023–06
  9. By: Kwonhyung Lee; Yejin Lim; Sunghyun Cho
    Abstract: Migrant laborers subject to ROK's Employment Permit System(EPS) must strike a balance between host country's high wage and 'Depreciation of skill-relevance entailed by immigration', whilst taking account of the 'migration costs'. This study modelizes the optimization mechanism of migrant workers and the firms hiring them -- then induces the solution of the very model, namely, 'Subgame Perfect Nash Equilibrium(SPNE)', by utilizing game theory's 'backward induction' method. Analyzing the dynamics between variables at SPNE state, the attained stylized facts are what as follows; [1]Host nation's skill-relevance and wage differential have positive correlation. [2]Emigrating nation's skill-relevance and wage differential have negative correlation. Both stylized facts -- [1, 2] -- are operationalized into 'Host nation skill-relevance hypothesis(H1)' and 'Emigrating nation skill-relevance hypothesis(H2)', respectively; of which are thoroughly tested by OLS linear regression analysis. In all sex/gender parameters(Total/Men/Women), test results support both hypotheses with statistical significance, thereby inductively substantiating the constructed model. This paper contributes to existing labor immigration literature in three following aspects: (1)Stimulate the economic approach to migrant labor analysis, and by such means, break away from the overflow of sociology, anthropology, political science, and jurisprudence in prior studies; (2)Shed a light on the EPS's microeconomic interaction process, of which was left undisclosed as a 'black box'; (3)Seek a complementary synthesis of two grand strands of research methodology -- that is, deductive modeling and inductive statistics.
    Date: 2023–06
  10. By: Kwonhyung Lee; Yejin Lim; Sunghyun Cho
    Abstract: This study expands upon the foundation of 'Skill-Relevance-Self Selection' model on labor immigration, introduced by our previous study (Lee, Lim, & Cho, 2022). In detail, we seek an empirical confirmation of the model by providing evidence of the attained -- however, yet to be tested -- stylized fact: 'as the discount of intranational skill-relevance by immigration is intensified, the wage differential of international labor immigration is diminished'. Utilizing the hypothesis and data meticulously formulated and selected in consideration of Employment Permit System (EPS) and the typology of host nations, OLS linear regression results reasonably support all hypotheses with statistical significance, thereby inductively substantiating our constructed model. This paper contributes to existing labor immigration economics literature in three following aspects: (1) Acknowledge the previously overlooked factor of 'skill relevance discount' in labor immigration as an independent parameter, separate from the 'Moving cost' of Borjas model (1987; 1991); (2) Demonstrate the down-to-earth economic implications of host nation typology, thereby establishing a taxonomy in existence, rather than an ideal classification; (3) Seek a complementary synthesis of two grand strands of research methodology -- that is, deductive mathematical modeling and inductive statistical testing.
    Date: 2023–06
  11. By: Rafiq Friperson (Vrije Universiteit Amsterdam); Hessel Oosterbeek (University of Amsterdam); Bas van der Klaauw (Vrije Universiteit Amsterdam)
    Abstract: We use Dutch register data to document the understudied phenomenon of teacher segregation. We show that teachers in primary and secondary schools in the four largest cities of the country – Amsterdam, Rotterdam, The Hague and Utrecht – are segregated in terms of their migration and social backgrounds. While segregation by social background is not much higher than what would be expected under random teacher-school assignment, segregation by migration background is substantial even after accounting for randomness. Relating schools’ teacher composition to their student composition, we find in most cases that schools with a high proportion of teachers from a particular background tend to have a high proportion of students from that same background.
    Date: 2023–06–22
  12. By: Zhu, Maria (Syracuse University)
    Abstract: For decades, Asian Americans have been characterized as a "model minority" due to perceived success in educational attainment and labor market outcomes. However, there are concerns that Asians remain underrepresented in top level positions in the workplace. This study presents new evidence on the extent of this underrepresentation between US-born Asian American and White men and examines mechanisms driving racial leadership gaps. Results indicate that Asian men are significantly less likely to work in management and executive positions compared to White men with similar qualifications. However, Asian men are not underrepresented in other high-paying, non-leadership occupations, suggesting this is a phenomenon unique to leadership occupations. Furthermore, these gaps are only present among East Asian and Southeast Asian men, while South Asian men do not differ from White men in the likelihood of working in leadership occupations. I examine several mechanisms and find no evidence that gaps are driven by racial differences in preferences for leadership positions, selection into self-employment, intergenerational transmission effects, immigration recency, or ethnic attrition.
    Keywords: Asian Americans, leadership, labor market outcomes
    JEL: J01 J15
    Date: 2023–06
  13. By: Lauriane BELLOY (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper examines the impact of short-term rentals on displacement and gentrication in six urban areas of Nouvelle-Aquitaine in France by analyzing the probability of moving as well as arrivals ows in the neighborhoods. The results show that the density of short-term rentals increases the probability of moving to a neighborhood that is poorer than the neighborhood of origin with a higher probability in areas far the Atlantic Ocean for the lowest incomes. These rentals also promote the arrival of new residents who are wealthier than their previous short-term occupants. These last results are observed with the help of net inows of residents from wealthier neighborhoods versus inows from poorer neighborhoods after the expansion of short-term rentals in each neighborhood.
    Keywords: Short-term rentals, Airbnb, Displacement, Gentrication
    Date: 2023–06–06

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