nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2024‒06‒17
eleven papers chosen by
Yuji Tamura,  La Trobe University

  1. Impact of Temporary Migration on Long-Run Economic Development: The Legacy of the Sent-down Youth Program By Gorgens, Tue; Meng, Xin; Zhao, Guochang
  2. Measuring Information Frictions in Migration Decisions: A Revealed-Preference Approach By Charly Porcher; Eduardo Morales; Thomas Fujiwara
  3. Immigrant Entrepreneurship: New Estimates and a Research Agenda By Saheel A. Chodavadia; Sari Pekkala Kerr; William R. Kerr; Louis J. Maiden
  4. The Factors Driving Migration Intentions and Destination Preferences in Central, East and Southeast European Countries By Antea Barišić; Mahdi Ghodsi; Alireza Sabouniha; Robert Stehrer
  5. Fiscal Competition and Migration Patterns By Patrice Pieretti; Giuseppe Pulina; Andreas Sintos; Skerdilajda Zanaj
  6. Beyond the Stigma of War: Russian Migrants in Kazakhstan's Labour Market By Abdulla, Kanat; Mourelatos, Evangelos
  7. Sailing Through History: The Legacy of Medieval Sea Trade On Migrant Perception and Extreme Right Voting By Bottasso, Anna; Cerruti, Gianluca; Conti, Maurizio; Santagata, Marta
  8. The effects of climate change on labor and capital reallocation By Christoph Albert; Paula Bustos; Jacopo Ponticelli
  9. Socio-Cultural Influences on Subjective Well-Being: Evidence from Syrian Migrants in Turkey By Giovanis, Eleftherios; Akdede, Sacit Hadi; Ozdamar, Oznur
  10. Exploring the Effect of Immigration on Consumer Prices in Spain By Marcel Smolka
  11. New Technologies, Migration and Labour Market Adjustment: An Intra-European Perspective By Antea Barišić; Mahdi Ghodsi; Michael Landesmann; Alireza Sabouniha; Robert Stehrer

  1. By: Gorgens, Tue (Australian National University); Meng, Xin (Australian National University); Zhao, Guochang (Southwest University of Finance and Economics, Chengdu)
    Abstract: Fifty years ago, China sent more than 16 million urban youths aged 16–19 to rural villages to work and they spent between 1 and 10 years there. This is known as the 'sent-down youth' (SDY) program. This paper examines how this internal migration impacted rural economic development in the regions that received a larger number of SDY per capita relative to regions that received less. We find a sizeable and persistent impact of the SDY program on real per capita GDP and nighttime light in the years after the program ended. Surprisingly, although our results confirm that the SDY increased education level of relevant cohorts, the variation in the education level of these cohorts does not seem to contribute directly to rural GDP and nighttime lights. We provide suggestive evidence regarding mechanisms through which the SDY influenced rural economic development.
    Keywords: economic development, migration, sent-down youth, China
    JEL: O18 J61 R23 N00
    Date: 2024–04
  2. By: Charly Porcher; Eduardo Morales; Thomas Fujiwara
    Abstract: We investigate the role of information frictions in migration. We develop novel moment inequalities to estimate worker preferences while allowing for unobserved worker-specific information sets, migration costs, and location-specific amenities and prices. Using data on internal migration in Brazil, we find that common estimation procedures underestimate the importance of expected wages in migration choices, and that workers face substantial and heterogeneous information frictions. Model specification tests indicate that workers living in regions with higher internet access and larger populations have more precise wage information, and that information precision decreases with distance. Our estimated model predicts that information frictions play a quantitatively important role in reducing migration flows and worker welfare, and limit the welfare gains from reductions in migration costs.
    JEL: F10 J61 R23
    Date: 2024–05
  3. By: Saheel A. Chodavadia; Sari Pekkala Kerr; William R. Kerr; Louis J. Maiden
    Abstract: Immigrants contribute disproportionately to entrepreneurship in many countries, accounting for a quarter of new employer businesses in the US. We review recent research on the measurement of immigrant entrepreneurship, the traits of immigrant founders, their economic impact, and policy levers. We provide updated statistics on the share of US entrepreneurs who are immigrants. We utilize the Annual Business Survey to quantify the greater rates of patenting and innovation in immigrant-founded firms. This higher propensity towards innovation is only partly explained by differences in education levels and fields of study. We conclude with avenues for future research.
    JEL: F22 F6 J15 J61 L26 M13 O15 O3 R23
    Date: 2024–05
  4. By: Antea Barišić; Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw); Alireza Sabouniha (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper analyses the determinants of outward migration decisions while focusing on CESEE countries and using data from the OeNB Euro Survey conducted by the Oesterrichische Nationalbank (OeNB), a data source that has yet to be exploited at the individual level. Applying a two-stage Heckman procedure, we identify the determinants of the intention to migrate, including age, gender, ties at home, household characteristics and income. In the second stage, we analyse the characteristics of those who expressed a desire to migrate and investigate the determinants of the choice of the respective destination, distinguishing between EU15, EU-CEE and extra-EU countries. The insights in this paper might help to inform fact-based migration and public policies in addition to laying some groundwork for further research (a) concerning the impact of new technologies and demographic trends on the intentions to migrate as well as (b) establishing a firmer link between the intention to migrate and actual migration.
    Keywords: migration drivers, migration aspirations/desires, destination decision, choice model
    JEL: F22 O15
    Date: 2024–05
  5. By: Patrice Pieretti (DEM, Université du Luxembourg); Giuseppe Pulina (Banque Centrale du Luxembourg); Andreas Sintos (DEM, Université du Luxembourg); Skerdilajda Zanaj (DEM, Université du Luxembourg)
    Abstract: In this paper, we model migration patterns 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, by offering lower taxes or more public inputs, the less technologically developed country can retain part of its skilled labor force and attract skilled workers from abroad, albeit not the most qualified. 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 H30 H54 H87 F22 F60
    Date: 2024
  6. By: Abdulla, Kanat; Mourelatos, Evangelos
    Abstract: In this study, we investigate the employers' attitude towards Russian migrants in Kazakhstan's labor market. We conduct a field experiment by sending over 1600 fictitious job applications to real job openings posted on one of the largest job search portals in the country. The job applicants included a local Kazakh, a local Russian, a migrant from Kyrgyzstan, and a migrant from Russia. We found significant differences in employment outcomes across ethnic groups in the selected occupations. Specifically, Russian migrants were significantly less likely to receive an interview invitation. Interestingly, sympathy towards Russian applicants was weakest for occupations located more than 830 km from the Russian borders and those requiring high-skilled workers. Our findings provide evidence for less favorable attitudes towards migrant workers from Russia during the Russia-Ukraine conflict.
    Keywords: discrimination, labour market, migrant workers, field experiment
    JEL: C93 J71 J78 J64
    Date: 2024
  7. By: Bottasso, Anna (CIRIEC); Cerruti, Gianluca (University of Genoa); Conti, Maurizio (University of Genoa); Santagata, Marta (University of Genova)
    Abstract: In this study we evaluate the role that Mediterranean Medieval trade with Africa and the Middle-East still plays today in Italian politics by shaping the attitudes towards migrants of individuals that live close to Medieval ports. Trade connections between Medieval ports and Muslim Africa and Middle East might have indeed favoured the emergence of cultural traits that helped the interaction with foreigners from different cultures, ethnicity and religion a few centuries before with respect to other areas of the country. We use a representative survey of young individuals (aged 20-35) to show that, conditionally on a rich set of geographic, historic, economic and individual controls, people living close to a Medieval port are less likely to think that migrants make Italy an unsafe place as well as to report right-wing voting attitudes. Moreover, we also find, in those areas, a lower probability of xenophobic attacks during the spike of refugees from Siria of 2015. Interestingly, right-wing parties started to attract less votes near Medieval ports only when immigration had become a very salient issue. Similarly, we find a lower probability of Jewish deportations close to Medieval ports during the Nazi occupation, the only period in Italian contemporary history when a minority group was explicitly targeted by the government. This in turn suggests that some deep-rooted cultural traits, although not observed and not clearly at work in society, can become visible when the right historical and political circumstances take place.
    Keywords: political ideology, immigration, cultural transmission, medieval trade sea routes, Roman road network
    JEL: D72 N70 N90 O10 O12 P48
    Date: 2024–05
  8. By: Christoph Albert; Paula Bustos; Jacopo Ponticelli
    Abstract: Climate change is expected to reduce agricultural productivity in developing countries. Classic international trade and geography models predict that the optimal adaptation response is a reallocation of capital and labor from agriculture towards sectors and regions gaining comparative advantage. In this paper, we provide evidence on the effects of recent changes in climate in Brazil to understand to what extent factor market frictions constrain this reallocation process. We document that persistent increases in dryness do not generate capital reallocation but a sharp reduction in credit to all sectors in both drying areas and financially integrated regions. In additionn, dryness generates a large reduction in agricultural employment. Workers staying in drying regions reallocate towards manufacturing but climate migrants are allocated to small firms outside of manufacturing in destination regions. The evidence suggests that frictions in the interbank market and spatial labor market frictions constrain the reallocation process from agriculture to manufacturing.
    Keywords: droughts, SPEI, Brazil, migration, financial integration
    JEL: O1 Q54 O16 J61
    Date: 2024–05
  9. By: Giovanis, Eleftherios; Akdede, Sacit Hadi; Ozdamar, Oznur
    Abstract: Political tensions linked with immigration flows have sparked and stimulated the debate about migration and the integration of migrants to host societies. We aim to examine the participation of Syrian forced migrants in socio-cultural activities in Turkey and compare the frequency of participation with Turkish respondents. The second aim is to study the influence of participation in socio-cultural activities on subjective well-being (SWB). An interesting finding is that Syrians report higher SWB levels than Turkish respondents. Moreover, the study shows that integration and social inclusion should not be attributed solely to immigrants but should also rely on the efforts of the recipient societies since financial constraints and income disparities may potentially make it more difficult for migrants’ socio-cultural participation. It is critical to explore the role of socio-cultural participation in SWB because of the belief that this facility promotes social inclusion, building more cohesive communities, which in turn improves well-being.
    Keywords: Cinema and Theatrical Plays; First-Generation Immigrants; Social and Cultural Participation; Subjective Well-Being; Syrian Migrants
    JEL: Z10
    Date: 2024
  10. By: Marcel Smolka
    Abstract: We investigate the effect of immigration on consumer prices in Spain between 1997 and 2013. Using variation across provinces, we first document a positive correlation between consumer prices and the share of migrants in the population. However, controlling for regional supply and demand shocks, and addressing endogeneity through an instrumental variables approach, we show that immigration has actually reduced consumer prices in Spain. An increase in the share of migrants by 10 percentage points reduces (CPI-weighted) consumer prices by approx. 1.25 percent. We show that the effect materializes around the years of the 2008 financial crisis, and that it is concentrated among non-tradable goods and services. Focusing on individual products, we find that some of those products that rely most heavily on migrant labor have been subject to considerable price reductions, while we find no such effects for those products that make intensive use of native labor. Finally, we find that it is immigration from outside Western Europe that led to a reduction in consumer prices, while the effect of immigration from Western Europe is zero. Overall, our results paint a complex picture of the effects of immigration on consumer prices. They support the idea that immigration can reduce consumer prices through both supply-side and demand-side channels.
    Keywords: immigration, consumer prices, Spain
    JEL: F22 J61
    Date: 2024
  11. By: Antea Barišić; Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw); Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Alireza Sabouniha (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: In this note, we study the relationship between the use of new technologies (e.g. robots and various ICT assets), labour demand and migration patterns. The adoption of new technologies might change the demand for labour in various ways, which in turn will have an impact on skill composition and wage levels of different types of workers. We report the main results from a study that first analyses the impact of robot adoption on wages by sector and skills. Second, we study the impact of robot adoption in manufacturing industries on the attraction of migrants while controlling for other factors in the labour demand function. This is followed by an analysis of push and pull factors of bilateral migration that focuses on the impact of relative automation gaps across countries. Finally, using the OeNB Euro Survey, we examine determinants of the intention to migrate and the role of income differentials between the countries of origin and destination.
    Keywords: Migration, migrant jobs, wages, employment, novel technologies, adoption of robots, digitalisation, European labour markets, Central Eastern European countries
    JEL: F22 F66 J61 J24 J20 O33
    Date: 2024–05

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