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on Economics of Human Migration |
| By: | Marchal, Léa; Ourens, Guzmán; Sabbadini, Giulia |
| Abstract: | We show that high-skilled immigrants earn higher wages than comparable natives in exporting firms, while low-skilled immigrants do not. Using matched employer-employee and customs data from Portugal, we document a reversal of the migrant-native wage gap among high-skilled workers in exporting firms. We develop a model with heterogeneous firms and directed search, in which high-skilled immigrants lower export costs through destination-specific knowledge. The model yields an information premium that explains the wage gap reversal. We provide evidence consistent with this mechanism using information on the origin country of the workers and the destination country of the firm's exports. Our results identify a novel channel through which trade reduces wage inequality conditional on the skill level and origin country of the employees, and provide new micro-level evidence on the role of workers in shaping firm-level internationalisation. |
| Keywords: | Export, Firm, Immigrant, Wage |
| JEL: | F14 F22 F16 J15 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dicedp:316450 |
| By: | Laszlo Goerke (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University); Cinzia Rienzo (Brighton University and GLO School of Business and Law) |
| Abstract: | Using data from the Current Population Survey (CPS) for 1994-2023, we show that the union wage mark-up for immigrants averages about 0.1 log points, 0.04 log-points less than that for natives. Therefore, unionization is less beneficial for immigrants than natives in the United States. The difference is most pronounced for males and low-skilled blue-collar workers. It cannot be observed for white-collar workers, individuals born in Mexico, and second-generation immigrants. An IVapproach indicates that the wage effects can be interpreted causally. Our results suggest that differences in the union wage mark-up may be due to disparities in bargaining power or result from discriminatory trade union objectives. Our findings point to the importance of labor market institutions in shaping the economic assimilation of immigrants. |
| Keywords: | Immigrants, Union objectives, Union wage mark-up, United States |
| JEL: | J15 J31 J61 J51 J70 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:iaa:dpaper:202501 |
| By: | Clément Nedoncelle (Université Paris Saclay, INRAE, AgroParis Tech, Paris-Saclay Applied Economics); Léa Marchal (Université Paris 1 Panthéon-Sorbonne, Centre d'Economie de la Sorbonne); Amandine Aubry (Université de Normandie - CREM, UNICAEN); Jérôme Héricourt (Université Paris-Saclay - Université d'Evry & CEPS-EPEE, and CEPII) |
| Abstract: | The impact of immigration on native workers’ wages has been a long-standing debate in labour economics. This meta-analysis synthesises findings from 88 studies published between 1985 and 2023, providing a comprehensive assessment of reduced-form estimates of the wage effect of immigration. Our results align with the existing literature, showing that the average wage effect is centred around zero, with substantial heterogeneity across studies. We highlight the critical role of contexts and methodological choices in shaping wage estimates. In particular, we find that shift-share instrumental variables correct for an upward bias of the OLS. Our findings emphasise the need for replication studies and greater transparency in methodological choices |
| Keywords: | Immigration; Labour Market; Meta-Analysis; Wage |
| JEL: | C80 J61 J15 J31 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:mse:cesdoc:25010 |
| By: | Gianni De Fraja |
| Abstract: | The labour force in the university sector of many countries is extremely international. I propose a theoretical model to study cross border academic mobility, where academics bargain with institutions over pay and choose the countries where they live and work to maximise their lifetime utility. I then test the model on a sample of well over 900, 000 research active academics over 33 years. The model predicts how academics respond both to changes in external conditions, including exchange rate fluctuations, and to changes in their record, measured by their publications and their citations. The theoretical predictions are confirmed by the empirical analysis. |
| Keywords: | Academic migration, university, international academic mobility, research, higher education |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:not:notgep:2025-03 |
| By: | Marijana Cvetanoska (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Andrijana Ristovska (National Bank of North Macedonia); Predrag Trpeski (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje) |
| Abstract: | This paper aims to examine the push factors influencing the intention of employees in North Macedonia to emigrate and identify potential measures to reduce the "brain drain" or “human capital flight” phenomenon. The subject of the study focuses on the attitudes of employees regarding their intention to leave the country, considering variables such as salary growth, promotion opportunities, trust in state institutions, the availability of alternative employment within the country, and employment practices in the country. The research employs a survey methodology, involving 120 respondents from various demographic backgrounds to capture diverse perspectives on the push factors driving emigration. A methodical statistical procedure was applied using simple linear regression to determine the impact of each economic factor on employees' intentions to leave. Additionally, multiple linear regression was utilized to see how various push factors together influence the employees' intention to leave the country. The results reveal that 62% of respondents are inclined to leave the country, particularly younger employees aged 31-40 with higher education levels. The primary factor influencing this intention is the lack of alternative employment opportunities in North Macedonia. These findings underscore the need for targeted policies and measures to retain human capital and prevent further economic and demographic decline. |
| Keywords: | Brain drain, Human capital, Migration, North Macedonia |
| JEL: | J08 J6 O15 |
| Date: | 2024–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:aoh:conpro:2024:i:5:p:148-158 |
| By: | Carlsson, Magnus (Department of Economics and Statistics, Linnaeus University); Eriksson, Stefan (Department of Economics, Uppsala University); Rooth, Dan-Olof (Swedish Institute for Social Research) |
| Abstract: | Labor markets in advanced economies have undergone substantial change due to globalization, technological improvements, and organizational changes, making language proficiency increasingly important even in less skilled jobs. Has this development led employers to shy away from hiring immigrants with limited host-country language skills? We shed light on this question by conducting a large-scale field experiment, where we introduce common second-language features in immigrants’ resumes. We also conduct employer surveys to interpret our experimental results. Our main finding is that language proficiency has a strong positive effect on being invited to a job interview, even in typical immigrant entry jobs. |
| Keywords: | language proficiency; immigrant hiring; field experiment |
| JEL: | F22 J15 J24 |
| Date: | 2025–05–06 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:sofile:2025_007 |
| By: | Afees A. Salisu (Centre for Econometrics and Applied Research, Ibadan, Nigeria; Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Ahamuefula E. Ogbonna (Centre for Econometrics and Applied Research, Ibadan, Nigeria); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Elie Bouri (School of Business, Lebanese American University, Lebanon) |
| Abstract: | We evaluate the predictive ability of the newly developed climate-related migration uncertainty index (CMUI) and its two components, the climate uncertainty index (CUI) and the migration uncertainty index (MUI), for the return volatility of agricultural commodity prices in both futures and spot markets. Employing a GARCH-MIDAS model, based on mixed data frequencies covering the period from 1977Q4 (with the earliest daily observation on October 3, 1977) to 2024Q1 (with the latest daily observation on March 29, 2024), we conduct both statistical and economic evaluations, including the Modified Diebold-Mariano test, Model Confidence Set procedure, and risk-adjusted performance metrics. The results demonstrate that integrating CUI, MUI, and CMUI into the predictive model of the return volatility of agricultural commodity prices significantly improves forecast accuracy relative to the conventional GARCH-MIDAS-RV benchmark. These findings suggest that the climate and migration related uncertainty indices are both statistically significant and economically relevant, offering enhanced predictive power and investment performance. |
| Keywords: | Climate-related Migration Uncertainty Index, Climate Uncertainty Index, Migration Uncertainty Index, Agricultural commodity prices, GARCH-MIDAS, Forecast evaluation, Economic Significance |
| JEL: | C53 D8 F22 Q02 Q13 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:pre:wpaper:202516 |
| By: | Hatta, Tatsuo; Ikeda, Shinsuke; Hoshina, Hiroki |
| Abstract: | Japan's rapid growth in the 1960s was accompanied by a massive migration from rural to urban areas. However, immediately after 1970, migration declined sharply, and at the same time, the rate of economic growth plummeted.To explain this decline in urban-bound migration, we estimated the urban-bound migration function.The estimation reveals that in the 1970s, the largest factor contributing to the decline in this migration was the relative increase in per capita income in rural areas. The second most important factor was narrowing regional disparities in the job-to- application ratio. In addition, the relative increase in the stock of social capital in the local regions also contributed. However, the population change in the rural areas had negligible effects on urban-bound migration in the 1970s.This paper also demonstrates that the relative increase in per capita income in rural areas is largely due to policy- based regional redistribution, implying that the large-scale redistribution of the fruits of rapid economic growth to rural areas halted urban-bound migration and reduced the growth rate. This suggests that for developing countries experiencing high growth, curbing the political pressure to redistribute to rural areas may be important to sustain the growth. |
| Keywords: | Geographic Labor Mobility, regional migration, growth rate, income redistribution to rural areas |
| JEL: | R11 J61 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:agi:wpaper:02000145 |
| By: | Tom\'a\v{s} Evan; Eva Fi\v{s}erov\'a; Aneta Elgnerov\'a |
| Abstract: | UN migration data and Hofstede's six cultural dimensions make it possible to find a connection between migration patterns and culture from a longterm perspective. Migrant patterns have been studied from the perspective of both immigrants and OECD host countries. This study tests two hypotheses: first, that the number of migrants leaving for OECD countries is influenced by cultural similarities to the host country; and second, that OECD host countries are more likely to accept culturally close migrants. Both hypotheses were tested using the Mann/Whitney U test for 93 countries between 1995 and 2015. The relationship between cultural and geodesic distance also analysed. The results indicate that cultural proximity significantly influences migration patterns, although the impact varies across countries. About two/thirds of OECD countries show a positive correlation between cultural similarity and geographic proximity, with notable exceptions, such as New Zealand and Australia, which exhibit a negative correlation. Countries such as Colombia, Denmark, and Japan maintain cultural distance, even from their neighbouring countries. Migrants from wealthier countries tend to select culturally similar destinations, whereas those from poorer countries often migrate to culturally distant destinations. Approximately half of OECD countries demonstrate a statistically significant bias towards accepting culturally close migrants. The results of this study highlight the importance of a critical debate that recognises and accepts the influence of culture on migration patterns. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.08443 |