nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2024‒05‒13
nine papers chosen by
Yuji Tamura,  La Trobe University

  1. Residential responses to cyclones: New evidence from Australia By Nguyen, Ha Trong; Mitrou, Francis
  2. Self-Employment among In-Movers and Stayers in Rural Areas: Insights from Swedish Register and Survey Data By Aldén, Lina; Hammarstedt, Mats; Skedinger, Per
  3. Labour Market Performance of Immigrants: New Evidence from Linked Administrative Data By Kaya, Ezgi
  4. Social Assistance and Refugee Crime By Daniel Auer; Michaela Slotwinski; Achim Ahrens; Dominik Hangartner; Selina Kurer; Stefanie Kurt; Alois Stutzer
  5. The Extent and Consequences of Teacher Biases against Immigrants By Sahlström, Ellen; Silliman, Mikko
  6. Immigration and the skill premium By Alessia Lo Turco; Daniela Maggioni; Federico Trionfetti
  7. The Impact of EU Enlargement on Immigrants’ Mental Health By Andrea Berlanda; Elisabetta Lodigiani; Elisa Tosetti; Giorgio Vittadini
  8. The Ties that Bind: Immigration and the Global Political Economy By Panizzon, Marion
  9. Fiscal competition and two-way migration By Patrice Pieretti; Giuseppe Pulina; Skerdilajda Zanaj

  1. By: Nguyen, Ha Trong; Mitrou, Francis
    Abstract: By leveraging randomly timed exposure to local cyclones as natural experiments, this study pioneers a comprehensive causal analysis of cyclone impacts on residential outcomes among Australian individuals. Drawing upon over two decades of nationally representative longitudinal data from the Household, Income and Labour Dynamics in Australia survey, coupled with historical cyclone records, individual fixed effects models uncover substantial increases in reported home damage. Planned relocation intentions and actual migration experiences show moderate increases, particularly in cases of higher cyclone severity and proximity. Additionally, these cyclones prompt individuals to acknowledge the significance of home-related insurance and actively seek coverage. Alongside long-distance domestic migration, insurance acquisition emerges as another alternative coping mechanism, effectively mitigating future repair costs. Extensive heterogeneity analyses reveal that the choice among these coping strategies depends on factors such as cyclone severity, age, prior homeownership, income, insurance coverage, rural/urban residence, coastal proximity, and community cyclone history. Moreover, the study identifies home damage from cyclones as a key factor driving observed migration patterns.
    Keywords: Natural Disasters, Migration, Insurance, Australia
    JEL: G22 G52 J61 Q54 R23
    Date: 2024
  2. By: Aldén, Lina (Linnaeus University); Hammarstedt, Mats (Linnaeus University); Skedinger, Per (Research Institute of Industrial Economics (IFN))
    Abstract: Our use of longitudinal register data combined with a unique survey allows us to offer a more comprehensive picture of rural self-employment than in previous studies. We find that self-employed in rural settings are more likely than those in metropolitan regions to employ others, but self-employment rates in rural areas are lower. There is substantial heterogeneity among the rural self-employed; in-movers are quite different from stayers in terms of their perceptions of the conditions necessary for business success and their employment practices. Policy initiatives aimed at fostering development in rural areas should consider these distinctions.
    Keywords: Self-Employment; Labor Mobility; Regional Development; Rural Economics
    JEL: J24 J61 R11
    Date: 2024–04–26
  3. By: Kaya, Ezgi
    Abstract: Using administrative data from the Annual Survey of Hours and Earnings linked to the 2011 Census of England and Wales, this paper explores the labour market performance of first-generation immigrants and compares it to that of UK-born employees. By focusing on various labour market outcomes and distinguishing immigrants based on their years of residence in the UK, the analysis reveals that more recent immigrants, on average, earn less, work longer hours, and are more likely to be employed in low-skilled occupations or temporary employment compared to observationally equivalent UK-born employees. However, the labour market performance of immigrants with ten or more years of residence in the UK is more comparable to that of their UK-born counterparts. These patterns are similar for males and females, but there is considerable heterogeneity in terms of ethnicity, country of birth, and reason for migration, as well as across the pay distribution.
    Keywords: immigration, linked administrative data, years of residence, labour market outcomes, regression, decomposition
    JEL: J24 J31 J61 J71
    Date: 2024
  4. By: Daniel Auer; Michaela Slotwinski; Achim Ahrens; Dominik Hangartner; Selina Kurer; Stefanie Kurt; Alois Stutzer
    Abstract: Despite intense policy debates, the relationship between social welfare and refugee crime remains understudied. Taking steps to address this gap, our study focuses on Switzerland, where mobility restrictions on exogenously assigned refugees coincide with cantons’ autonomy in setting social assistance rates. Linking time-varying cantonal benefit rates between 2009 and 2016 to individual-level administrative data, we find that higher social assistance reduces criminal charges, especially for petty crimes and drug offenses. In light of limited (short-run) repercussions for refugees’ labor market participation, our results suggest social assistance can be a cost-effective measure to improve refugee welfare and enhance public safety.
    Keywords: immigration, crime, welfare benefits, refugees, migration policy
    JEL: D02 H53 J18 K42
    Date: 2024
  5. By: Sahlström, Ellen (Aalto University); Silliman, Mikko (Norwegian School of Economics)
    Abstract: We study the extent and consequences of biases against immigrants exhibited by high school teachers in Finland. Compared to native students, immigrant students receive 0.06 standard deviation units lower scores from teachers than from blind graders. This effect is almost entirely driven by grading penalties incurred by high-performing immigrant students and is largest in subjects where teachers have more discretion in grading. While teacher-assigned grades on the matriculation exam are not used for tertiary enrollment decisions, we show that immigrant students who attend schools with biased teachers are less likely to continue to higher education.
    Keywords: immigrants, discrimination, teachers, education policy
    JEL: I24 J15 J68
    Date: 2024–04
  6. By: Alessia Lo Turco (Università Politecnica delle Marche); Daniela Maggioni (Università Cattolica del Sacro Cuore); Federico Trionfetti (Aix-Marseille Univ., CNRS, AMSE, Marseille, France)
    Abstract: Data on EU economies show no correlation between low-skilled immigration and the skill premium. We rationalise this evidence in a model where firms face search and screening costs. Low-skilled immigration diminishes the relative benefit of screening skilled workers, leading to a decline in their relative ability within the firm and an undetermined impact on the skill premium. On region-sector and firm level data from 2008 to 2013, we find that low-skilled immigration in Italian regions has reduced skill intensity without affecting the skill premium. Using proxies for workers’ ability and screening activity, we provide supporting evidence for the theorised mechanisms.
    Keywords: matching, screening, skill-intensity, factor relative ability
    JEL: F22 J61 F16 D24
    Date: 2024–04
  7. By: Andrea Berlanda (University of Padova); Elisabetta Lodigiani (University of Padova and LdA); Elisa Tosetti (University of Padova); Giorgio Vittadini (University of Milano Bicocca and LdA)
    Abstract: In this paper we explore the impact of the 2007 European Union enlargement on the mental health of documented immigrants. Using data from a unique Italian administrative data set and employing a difference-in-differences individual fixed effect estimator, we find that the enlargement causes a significant improvement in the mental health of young male immigrants. To shed light on the mechanisms behind these results, we use data from a unique survey and show that the enlargement mitigates sources of health concerns and increases income and employment stability through permanent job contracts for young male immigrants. Overall, these findings suggest that enhanced labor market conditions due to enlargement may lead to subsequent important decrease in psychological distress among immigrants.
    Keywords: Mental health; migration; drug prescriptions; EU enlargement.
    Date: 2023–12
  8. By: Panizzon, Marion
    Abstract: Extract In political economy, the factors leading a person to leave her country have received considerable attention, and diverse authors have evaluated the role played by determinants of migration differently. In their book “The ties that bind, ” David Leblang, Professor of Politics at the University of Virginia and the Director of the Batten School of Public Policy Studies, and Benjamin Helms, Assistant Professor of International Affairs at Texas A&M University, rank migration for work or to gain an education as less relevant than is widely believed. In their view, what leads people to move is the desire to participate politically, by voting, and eventually to qualify for citizenship. Disaggregated by skill level, this implies that, to attract a highly skilled migrant, the host state needs to prioritize granting access to political rights, while excessively high scores of linguistic aptitudes must be scrapped. For the lower skilled migrants too, host state politics play a role, but more passively, as in the absence of hostile, right-wing politics and corruption. About the author Marion Panizzon, Senior Research Fellow, World Trade Institute Cite Marion Panizzon, The Ties that Bind: Immigration and the Global Political Economy, International Relations of the Asia-Pacific, 2024;, lcae006,
    Date: 2024–04–25
  9. By: Patrice Pieretti; Giuseppe Pulina; Skerdilajda Zanaj
    Abstract: In this paper, we model two-way migration as the outcome of strategic public policies adopted by competing jurisdictions. We assume that two economies, distinguished by different technological levels, host a continuum of mobile individuals with varying skill levels. To maximize their net revenues, governments compete for mobile workers by taxing wages and providing a public good that enhances firm productivity (public input). We show that the most skilled workers migrate to the technologically advanced economy. However, the government in the less technologically developed economy can retain some of its skilled workers and attract workers from abroad by offering lower taxes or more public inputs. As a result, a two-way migration pattern emerges, driven by governments’ strategic policy choices. Finally, the introduction of heterogeneity in population size does not significantly alter the results.
    Keywords: Bilateral migration, tax competition; heterogeneous skills, technological gap, policy competition.
    JEL: H20 H32 H54 H87 F22 F60
    Date: 2024–03

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