nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2024‒05‒27
six papers chosen by
Yuji Tamura,  La Trobe University

  1. Taxes and Migration Flows: Preferential Tax Schemes for High-Skill Immigrants By Pedro Teles; João Brogueira de Sousa
  2. The Consequences of Narrow Framing for Risk-Taking: A Stress Test of Myopic Loss Aversion By Silvia Angerer; Hanna Brosch; Daniela Glätzle-Rützler; Philipp Lergetporer; Thomas Rittmannsberger
  3. Are Immigrants More Innovative? Evidence from Entrepreneurs By Lee, Kyung Min; Kim, Mee Jung; Brown, J. David; Earle, John S.; Liu, Zhen
  4. The effect of lawful crossing on unlawful crossing at the US southwest border By Michael A. Clemens
  5. Immigration's Effect on US Wages and Employment Redux By Alessandro Caiumi; Giovanni Peri
  6. Housing and integration of migrants in European Mediterranean countries: A scoping review By Arranz, Ana Muñoz

  1. By: Pedro Teles; João Brogueira de Sousa
    Abstract: We study preferential tax schemes for high-skill immigrants such as those adopted in Europe in the past two decades. The overall assessment is negative. While they induce a very large immigration surplus tilted towards the low-skill, they may also give rise to an emigration deficit that more than offsets the surplus. The unilateral adoption is ambiguous in its welfare effects for both high- and low-skill workers, but the multilateral adoption is unambiguous in redistributing from low-skill to high-skill workers.
    Date: 2023
  2. By: Silvia Angerer; Hanna Brosch; Daniela Glätzle-Rützler; Philipp Lergetporer; Thomas Rittmannsberger
    Abstract: We present representative evidence of discrimination against migrants through an incentivized choice experiment with over 2, 000 participants. Decision makers allocate a fixed endowment between two receivers. To measure discrimination, we randomly vary receivers’ migration background and other attributes, including education, gender, and age. We find that discrimination against migrants by the general population is both widespread and substantial. Our causal moderation analysis shows that migrants with higher education and female migrants experience significantly less discrimination. Discrimination is more pronounced among decision makers who are male, non-migrants, have rightwing political preferences, and live in regions with lower migrant shares.
    Keywords: discrimination, representative sample, migration, experiment
    JEL: C91 C93 J15 D90
    Date: 2024–06
  3. By: Lee, Kyung Min; Kim, Mee Jung; Brown, J. David; Earle, John S.; Liu, Zhen
    Abstract: We evaluate the contributions of immigrant entrepreneurs to innovation in the U.S. using linked survey-administrative data on 199, 000 firms with a rich set of innovation measures and other firm and owner characteristics. We find that not only are immigrants more likely than natives to own businesses, but on average their firms display more innovation activities and outcomes. Immigrant-owned firms are particularly more likely to create completely new products, improve previous products, use new processes, and engage in both basic and applied R&D, and their efforts are reflected in substantially higher levels of patents and productivity. Immigrant owners are slightly less likely than natives to imitate products of others and to hire more employees. Delving into potential explanations of the immigrant-native differences, we study other characteristics of entrepreneurs, access to finance, choice of industry, immigrant self-selection, and effects of diversity. We find that the immigrant innovation advantage is robust to controlling for detailed characteristics of firms and owners, it holds in both high-tech and non-high-tech industries and, with the exception of productivity, it tends to be even stronger in firms owned by diverse immigrant-native teams and by diverse immigrants from different countries. The evidence from nearly all measures that immigrants tend to operate more innovative and productive firms, together with the higher share of business ownership by immigrants, implies large contributions to U.S. innovation and growth.
    Date: 2024–04–18
  4. By: Michael A. Clemens (Peterson Institute for International Economics)
    Abstract: Legal and illegal markets often coexist. In theory, marginal legalization can either substitute for the remaining parallel market, or complement it via scale effects. I study migrants crossing without prior authorization at the US southwest border, where large-scale unlawful crossing coexists with substantial, varying, and policy-constrained lawful crossing. I test whether lawful and unlawful crossing are gross substitutes or complements, using lag-augmented local projections to analyze a monthly time-series on the full universe of 10, 658, 497 inadmissible migrants encountered from October 2011 through July 2023. Expanded lawful crossings cause reduced unlawful crossings, an effect that grows over time and reaches elasticity -0.3 after approximately 10 months. That is, in this case, expanded activity on the lawful market substitutes for the parallel market, even net of scale effects. This deterrent effect explains approximately 9 percent of the overall variance in unlawful crossings. In an ancillary finding, I fail to reject a null effect of depenalizing unlawful crossings on future attempted unlawful crossings.
    Keywords: Labor Mobility, Immigrant Workers, International Migration, Illegal Behavior, Enforcement of Law
    JEL: F22 J61 K42
    Date: 2024–04
  5. By: Alessandro Caiumi; Giovanni Peri
    Abstract: In this article we revive, extend and improve the approach used in a series of influential papers written in the 2000s to estimate how changes in the supply of immigrant workers affected natives' wages in the US. We begin by extending the analysis to include the more recent years 2000-2022. Additionally, we introduce three important improvements. First, we introduce an IV that uses a new skill-based shift-share for immigrants and the demographic evolution for natives, which we show passes validity tests and has reasonably strong power. Second, we provide estimates of the impact of immigration on the employment-population ratio of natives to test for crowding out at the national level. Third, we analyze occupational upgrading of natives in response to immigrants. Using these estimates, we calculate that immigration, thanks to native-immigrant complementarity and college skill content of immigrants, had a positive and significant effect between +1.7 to +2.6\% on wages of less educated native workers, over the period 2000-2019 and no significant wage effect on college educated natives. We also calculate a positive employment rate effect for most native workers. Even simulations for the most recent 2019-2022 period suggest small positive effects on wages of non-college natives and no significant crowding out effects on employment.
    JEL: F22 J21 J69
    Date: 2024–04
  6. By: Arranz, Ana Muñoz
    Abstract: Introduction: It has been stated that housing plays a major role in the process of integration of migrants and refugees into a society, as housing location, accessibility, affordability and habitability among other factors, have direct impact on the ability of inhabitants to seek employment and access education and healthcare. However, there seems to be little literature about the integration outcomes and the improvement of wellbeing after different housing policies and housing solutions have been implemented. This research aims at reviewing the existing literature regarding housing interventions of any kind for migrants in European Mediterranean countries, with a focus on inclusion related outcomes. Methods: A scoping review was performed including different sources of information. Results: The review analysed 26 records -comprising 103 housing projects- with various study designs. The housing interventions were categorised into eight main types: collective accommodation, camps, squats, flatsharing, full apartments in only-migrants buildings, full apartments in mixed population buildings, financial support for housing, and other non-material interventions. Each type of intervention showed different integration outcomes and good practices associated with it, which have been categorised into 13 domains. Conclusions: Measuring integration is complex due to various factors, including the absence of a consensus definition and its multifaceted nature. This review reveals heterogeneous and scant outcome measures and employing Ager and Strang's integration framework facilitates categorisation and understanding. The reviewed good practices often lack supporting evidence, but frequently noted integration facilitators include stable housing and support in employment, education and social relations. Overall, while widely recognised as vital, robust evidence on housing interventions' impact on migrant integration is lacking, calling for further research.
    Date: 2024–04–25

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