nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2008‒01‒05
28 papers chosen by
Yuji Tamura
Australian National University

  1. Why Do German Men Marry Women from Less Developed Countries? : An Analysis of Transnational Partner Search Based on the German Socio-Economic Panel By David Glowsky
  2. Social Deprivation and Exclusion of Immigrants in Germany By John P. Haisken-DeNew; Mathias Sinning
  3. Return Migration and the "Healthy Immigrant Effect" By Monika Sander
  4. Circular Migration: Counts of Exits and Years away from the Host Country By Amelie Constant; Klaus F. Zimmermann
  5. Measuring Ethnic Identity and Its Impact on Economic Behavior By Amelie Constant; Klaus F. Zimmermann
  6. Ethnic Identity and Immigrant Homeownership By Amelie Constant; Rowan Roberts; Klaus F. Zimmermann
  7. Wealth and Asset Holdings of Immigrants in Germany By Mathias Sinning
  8. Precautionary Savings by Natives and Immigrants in Germany By Matloob Piracha; Yu Zhu
  9. Migrant Networks, Migrant Selection, and High School Graduation in Mexico By Alfonso Miranda
  10. Labor Outflows and Labor Inflows in Puerto Rico By George J. Borjas
  11. Immigration policy and self-selecting migrants By Milo Bianchi
  12. A gendered assessment of the brain drain By FrŽdŽric, DOCQUIER; B. Lindsay, LOWELL; Abdeslam, MARFOUK
  13. Earnings Assimilation of Immigrants in Germany : The Importance of Heterogeneity and Attrition Bias By Michael Fertig; Stefanie Schurer
  14. When Have All the Graduates Gone? : Internal Cross-State Migration of Graduates in Germany 1984-2004 By Oliver Busch
  15. Changing Character of Rural Economy and Migrant Labour in Punjab By Singh, Lakhwinder; Singh, Inderjeet; Ghuman, Ranjit Singh
  16. Assimilation and Cohort Effects for German Immigrants By Sebastian Gundel; Heiko Peters
  17. Analyzing the Labor Market Activity of Immigrant Families in Germany By Leilanie Basilio; Thomas K. Bauer; Mathias Sinning
  18. The Persistence of Self-Employment Across Borders: New Evidence on Legal Immigrants to the United States By Randall Kekoa Quinones Akee; David A. Jaeger; Konstantinos Tatsiramos
  19. Ethnic Environment during Childhood and the Educational Attainment of Immigrant Children in Sweden By Bygren, Magnus; Szulkin, Ryszard
  20. How do Very Open Economies Adjust to Large Immigration Flows? Recent Evidence from Spanish Regions By Libertad González Luna; Francesc Ortega
  21. Segregation, entrepreneurship and work values: the case of France By Claudia Senik; Thierry Verdier
  22. Are Interregional Wage Differentials in Russia Compensative? By Aleksey Oshchepkov
  23. Do Remittances to Latin America Depend on the U.S. Business Cycle? By Shaun K. Roache; Ewa Gradzka
  24. Immigration and Wages: An Open Economy Model By Wang-Sheng Lee
  25. Birth-Cohort Projections of the Spanish Participation Rate By Pilar Cuadrado; Aitor Lacuesta; José María Martínez; Eduardo Pérez
  26. Germans in Germany's Ethnic Neighborhoods By Anita I. Drever
  27. Labour market outcomes after vocational training in Germany : equal opportunities for migrants and natives? By Burkert, Carola; Seibert, Holger
  28. Private Deception and the Rise of Public Employment Offices in the United States, 1890 - 1930 By Woong Lee

  1. By: David Glowsky
    Abstract: This paper examines why German men marry women from countries which are less economically developed. Two hypotheses deduced from exchange theory and the economic theory of the family are tested: 1. Low physical and social attractiveness as well as reduced opportunities to meet German partners lead to marriage with a woman from a poorer country. 2. Because of the economic gap between their countries of origin, German men can marry comparatively more attractive women on the international marriage market than they could hope to attract within Germany. The analysis uses data from the German Socio-Economic Panel (GSOEP, 1984-2005). The results show that men with wives from poorer countries do not differ from men with German wives with regard to their attractiveness and social contacts. A better explanation for these marriages lies in the age-related "marriage squeeze" encountered by German men older than 30 years. Only on account of their age do these men struggle to find a spouse on the German marriage market, which in turn increases the likelihood of them seeking marriage with women from poorer countries. Furthermore, the results do offer strong evidence that the economic gap between their countries of origin does allow German men to marry more attractive women when they opt for partners from poorer countries.
    Keywords: Marriage market, marriage migration, marriage squeeze, age difference, social status, attractiveness
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp61&r=mig
  2. By: John P. Haisken-DeNew; Mathias Sinning
    Abstract: This paper aims at providing empirical evidence on social exclusion of immigrants in Germany. We demonstrate that when using a conventional definition of the social inclusion index typically applied in the literature, immigrants appear to experience a significant degree of social deprivation and exclusion, confirming much of the economic literature examining the economic assimilation of immigrants in Germany. We propose a weighting scheme that weights components of social inclusion by their subjective contribution to an overall measure of life satisfaction.Using this weighting scheme to calculate an index of social inclusion, we find that immigrants are in fact as "included" as Germans. This result is driven strongly by the disproportionately positive socio-demographic characteristics that immigrants possess as measured by the contribution to their life satisfaction.
    Keywords: Social Exclusion, International Migration, Integration
    JEL: F22 I31 Z13
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp63&r=mig
  3. By: Monika Sander
    Abstract: According to the "healthy immigrant effect" (HIE), immigrants upon arrival are healthier than locally born residents. However, this health advantage is supposed to diminish or even disappear over a relatively short period and the immigrants' health status is converging to that of the natives. The causes for this gradient of immigrants' health are subject to an ongoing discussion and the underlying trajectories are not yet fully understood. This paper investigates whether return migration can serve as an additional explanation for the declining health of immigrants, and thus aims at shedding some light on the trajectories underlying the HIE. The data used are drawn from 13 waves of the German Socio-Economic Panel. Using a random-effects probit model, this analysis explores the factors influencing re-migration by means of a sample of 4,426 migrants. In line with the existing literature, the study shows that e.g. having spouse and children in the home country, or being non-working or jobless yield a higher return probability, whereas all factors associated with attachment to Germany (e.g. language fluency, German citizenship, house ownership) reduce the probability of re-migration. Additionally, the results indicate that men reporting poorer health ('good', 'satisfactory', 'poor' or 'bad') are significantly less likely to return home relative to male immigrants who describe their health as 'very good'. However, for women, the effects are adverse to that of men, and none of the health coefficients for women is significant. Hence - at least for men - re-migration can be seen as an additional explanation for the HIE.
    Keywords: Return migration, healthy immigrant effect, SOEP
    JEL: C25 F22 I19
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp60&r=mig
  4. By: Amelie Constant; Klaus F. Zimmermann
    Abstract: The economic literature has largely overlooked the importance of repeat and circular migration. The paper studies this behavior by analyzing the number of exits and the total number of years away from the host country using count data models and panel data from Germany. More than 60% of migrants from the guestworker countries are indeed repeat or circular migrants. Migrants from European Union member countries, those not owning a dwelling in Germany, the younger and the older (excluding the middle ages), are significantly more likely to engage in repeat migration and to stay out for longer. Males and those migrants with German passports exit more frequently, while those with higher education exit less; there are no differences with time spent out. Migrants with family in the home country remain out longer, and those closely attached to the labor market remain less; they are not leaving the country more frequently.
    Keywords: Repeat migration, circular migration, guestworkers, minorities, count data
    JEL: F22 J15 J61 C25
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp40&r=mig
  5. By: Amelie Constant; Klaus F. Zimmermann
    Abstract: The paper advocates for a new measure of the ethnic identity of migrants, models its determinants and explores its explanatory power for various types of their economic performance. The ethnosizer, a measure of the intensity of a person's ethnic identity, is constructed from information on the following elements: language, culture, societal interaction, history of migration, and ethnic self-identification. A two-dimensional concept of the ethnosizer classifies migrants into four states: integration, assimilation, separation and marginalization. The ethnosizer largely depends on pre-migration characteristics. Empirical evidence studying economic behavior like work participation, earnings and housing decisions demonstrates the significant relevance of ethnic identity for economic outcomes.
    Keywords: Ethnicity, ethnic identity, acculturation, migrant assimilation, migrant integration,work, cultural economics
    JEL: F22 J15 J16 Z10
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp47&r=mig
  6. By: Amelie Constant; Rowan Roberts; Klaus F. Zimmermann
    Abstract: Immigrants are much less likely to own their homes than natives, even after controlling for a broad range of life-cycle and socio-economic characteristics and housing market conditions. This paper extends the analysis of immigrant housing tenure choice by explicitly accounting for ethnic identity as a potential influence on the homeownership decision, using a two-dimensional model of ethnic identity that incorporates attachments to both origin and host cultures. The evidence suggests that immigrants with a stronger commitment to the host country are more likely to achieve homeownership for a given set of socioeconomic and demographic characteristics, regardless of their level of attachment to their home country.
    Keywords: Ethnicity, ethnic identity, immigration, immigrant integration, homeownership
    JEL: R21 F22 J15 Z10
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp57&r=mig
  7. By: Mathias Sinning
    Abstract: This paper examines the relative wealth position and the portfolio choices of immigrants in Germany. The empirical findings reveal significant differences in overall wealth and various wealth components between German natives and immigrants. Differences in real estate constitute the major part of different levels of net worth, indicating that disparities in home-ownership rates are responsible for the main part of the overall wealth gap. Moreover, migrants' degree of portfolio diversification is significantly lower than that of comparable natives. The results of a decomposition analysis suggest that differences in wealth and asset holdings may be explained by disparity in educational attainment to a sizable extent, while the effects of income differentials and differences in demographic characteristics are insignificant.
    Keywords: International migration, wealth accumulation, decomposition analysis, multiple imputation
    JEL: F22 D31
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp59&r=mig
  8. By: Matloob Piracha; Yu Zhu
    Abstract: This paper analyses the savings behaviour of natives and immigrants in Germany. It is argued that uncertainty about future income and legal status (in case of immigrants) is a key component in the determination of the level of precautionary savings. Using the German Socio-economic Panel data it is shown that, although immigrants have lower levels of savings and are less likely to have regular savings than natives, the gap is significantly narrowed once we take loan repayments and remittances into account. Moreover, we find that marginal propensity to save for immigrants is about 40% higher than that for natives. We then exploit a natural experiment arising from a change in nationality law in Germany in 2000 to estimate the importance of precautionary savings. Using a difference-in-differences approach, we find that the easing of the requirements for naturalization has caused significant reductions of savings and remittances for immigrants as a whole, in the magnitude of 13% and 29% respectively, comparing to the pre-reform period. Our parametric specification shows that the introduction of the new nationality law reduces the gap between natives and immigrants in marginal propensity to save by 40% to 65%, depending on the measure of savings used. These findings suggest that much of the differences in terms of the savings behaviour between natives and immigrants are driven by the precautionary savings arising from the uncertainties about future income and legal status rather than cultural differences.
    Keywords: migration, remittances, savings, uncertainty
    JEL: D80 E21 F22
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp33&r=mig
  9. By: Alfonso Miranda (Keele University and IZA)
    Abstract: This paper examines whether family and community migration experience affect the probability of high school graduation in Mexico once unobserved heterogeneity is accounted for. Bivariate random effects dynamic probit models for cluster data are estimated to control for the endogeneity of education and migrant network variables. Correlation of unobservables across migration and education decisions as well as within groups of individuals such as the family are explicitly controlled for. Results show that migrant networks reduce the likelihood of high school graduation. Negative migrant selection is detected at the individual level while positive migrant selection is found at the family level.
    Keywords: migration, education, migrant selection, dynamic bivariate probit
    JEL: F22 I21 J61 C35
    Date: 2007–12
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp3204&r=mig
  10. By: George J. Borjas
    Abstract: Although a sizable fraction of the Puerto Rican-born population moved to the United States, the island also received large inflows of persons born outside Puerto Rico. Hence Puerto Rico provides a unique setting for examining how labor inflows and outflows coexist, and measuring the mirror-image wage impact of these flows. The study yields two findings. First, the skills of the out-migrants differ from those of the in-migrants. Puerto Rico attracts high-skill in-migrants and exports low-skill workers. Second, the two flows have opposing effects on wages: in-migrants lower the wage of competing workers and out-migrants increase the wage.
    JEL: J60 J61
    Date: 2007–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:13669&r=mig
  11. By: Milo Bianchi
    Abstract: I build a simple theory of self-selection into migration and immigration policy formation. I show that any immigration policy affects immigrants skill composition, and this effect may drive the policy outcome in the receiving country. For example, restricting immigration when it is low skilled may worsen immigrants' self-selection and thus the receiving country skill distribution. Hence, understanding the migration decision becomes crucial for analyzing the political economy of immigration. By this composition effect, some natives may support further restrictions even though current immigrants are not harmful for them, and immigration restrictions may be optimal even in a purely utilitarian world.
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:pse:psecon:2007-41&r=mig
  12. By: FrŽdŽric, DOCQUIER (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics); B. Lindsay, LOWELL; Abdeslam, MARFOUK
    Abstract: This paper updates and extends the Docquier-Marfouk data set on international migration by educational attainment. We use new sources, homogenize definitions of what a migrant is, and compute gender-dissaggregated indicators of the brain drain. Emigration stocks and rates are provided by level of schooling and gender for 195 source countries in 1990 and 2000. Our data set can be usded to capture the recent trend in womenÕs brain drain and to analyze its causes and consequences for developing countries. We show that women represent an increasing share of the OECD immigration stock and exhibit relatively higher rates of brain drain than men. The gender gap in skilled migration is strongly correlated with the gender gap in educational attainment at origin. Equating womenÕs and menÕs access to education would probably reduce gender differences in the brain drain.
    Keywords: Brain drain, Gender, Human capital, Migration
    JEL: F22 J61
    Date: 2007–12–14
    URL: http://d.repec.org/n?u=RePEc:ctl:louvec:2007045&r=mig
  13. By: Michael Fertig; Stefanie Schurer
    Abstract: Heterogeneity in the ethnic composition of Germany's immigrant population renders general conclusions on the degree of economic integration difficult. Using a rich longitudinal data-set, this paper tests for differences in economic assimilation profiles of four entry cohorts of foreign-born immigrants and ethnic Germans. The importance of time-invariant individual unobserved heterogeneity and panel attrition in determining the speed of assimilation is analysed. We find evidence for heterogeneity in the assimilation profiles and for robust assimilation profiles for two entry cohorts only. Omitted variables, systematic sample attrition and the presence of second generation immigrants in the sample influence the speed of assimilation, but do not change the overall picture.
    Keywords: Unobserved heterogeneity, panel attrition, sample selection, fixed effects, migration
    JEL: I12 C23
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp30&r=mig
  14. By: Oliver Busch
    Abstract: The present paper analyzes the out-migration of graduates to other German states or abroad based on the German Socio-Economic Panel (GSOEP). Applying duration analysis, it can be shown that, ten years after graduation, slightly more than seventy percent of the graduates still live in the state where they completed their studies. The parametric estimation model identifies personal characteristics that are highly correlated with out-migration and permanent residence respectively. The analysis confirms previous results that nonresident students exhibit a significantly higher emigration propensity than resident fellows.
    Keywords: Brain drain, nonresident students, fiscal externalities, duration analysis, GSOEP
    JEL: H52 I2 J61 R23
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp26&r=mig
  15. By: Singh, Lakhwinder; Singh, Inderjeet; Ghuman, Ranjit Singh
    Abstract: Rural economy of Punjab has been undergoing structural transformation. But the dependence of rural population in general and rural labour in particular for earning livelihood from the rural economy continues. This process of rural transformation has perpetuated the distress among the rural workforce. It is strange phenomenon that migrant labour continues to pour into the rural areas. The rural economy of Punjab, due to wage gap, continues to attract huge amount of inflow of people from other poorer states of India. Rural-rural migration, which is largely seasonal and stay of workers in most cases, is less than six months. Therefore, the official statistics on migration grossly under record the rural-rural migration. Attempt has been made in this paper to fill this gap. Despite the fact that rural real wage rate has declined between the period 1990 and 2000, however, rural-rural migration has increased during the same period. The majority of the migrants (more than 90 per cent) are able to find work in agriculture up to 50 days in a year. It has wide ranging implications for the rural-rural migration and level of living of the families of the migrants.
    Keywords: Rural-rural migration; Punjab; Rural economy; migrant labour
    JEL: O1 O15
    Date: 2007–12–21
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:6420&r=mig
  16. By: Sebastian Gundel; Heiko Peters
    Abstract: Demographic change and the rising demand for highly qualified labor in Germany attracts notice to the analysis of immigration. In addition, the pattern of immigration changed markedly during the past decades. Therefore we use the latest data of the German Socioeconomic Panel up to the year 2006 in order to investigate the economic performance of immigrants. We perform regressions of three pooled cross sections (1986, 1996, 2006) to estimate assimilation and quality of immigrants as reflected by their earnings. Further we take the heterogeneity of immigrants into account by separating them by country of origin. The rising wage inequality in Germany since the mid nineties will also be considered. We find a negative wage gap and a yearly assimilation rate of 2.3 percent. Due to a changing immigration pattern the cohort quality is declining.
    Keywords: Assimilation, immigrants, cohort quality, Germany
    JEL: J31 J61 C21
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp64&r=mig
  17. By: Leilanie Basilio; Thomas K. Bauer; Mathias Sinning
    Abstract: This paper analyzes whether immigrant families facing credit constraints adopt a family investment strategy wherein, upon arrival, an immigrant spouse invests in host country-specific human capital while the other partner works to finance the family's current consumption. Using data for West Germany, we do not find evidence for such a specialization strategy. We further examine the labor supply and wage assimilation of families whose members immigrated together relative to families whose members immigrated sequentially. Our estimates indicate that this differentiation is relevant for the analysis of the labor market activities of migrant households.
    Keywords: International migration, assimilation, family investment hypothesis
    JEL: D10 F22 J22
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp38&r=mig
  18. By: Randall Kekoa Quinones Akee (IZA); David A. Jaeger (Department of Economics, College of William and Mary); Konstantinos Tatsiramos (IZA)
    Abstract: Using recently-available data from the New Immigrant Survey, we find that previous self-employment experience in an immigrant’s country of origin is an important determinant of their self-employment status in the U.S., increasing the probability of being self-employed by about 7 percent. Our results improve on the previous literature by measuring home-country selfemployment directly rather than relying on proxy measures. We find little evidence to suggest that home-country self-employment has a significant effect on U.S. wages in either paid employment or self employment.
    Keywords: Self-employment, entrepreneurship, New Immigrant Survey
    JEL: J61 J21
    Date: 2007–12–20
    URL: http://d.repec.org/n?u=RePEc:cwm:wpaper:69&r=mig
  19. By: Bygren, Magnus (Stockholm University Linnaeus Center for Integration Studies - SULCIS); Szulkin, Ryszard (Stockholm University Linnaeus Center for Integration Studies - SULCIS)
    Abstract: We ask whether growing up with persons of the same national background (which we refer to as coethnics), in the immediate neighbourhood, influences future educational careers of children of immigrants. We use administrative data to follow an entire cohort of immigrant children who graduated from Swedish compulsory schools in 1995. We have information on their parents and on their ethnic environment during the period they were 10 – 15 years old. The dependent variable studied is the highest completed education in years at age 24. We are able to account for unobserved heterogeneity with neighbourhood fixed effects and ethnic group fixed effects. We find that the effect of the quantitative side of the ethnic environment (the number of coethnics) on educational attainment is strongly conditioned by the qualitative side of this environment (the educational success of coethnics). The individual’s educational career is positively related to the number of young coethnics in the neighbourhood, but only if they can be characterized as being educationally successful. Growing up in a large ethnic community with average or poor educational success is harmful for the future educational success. The effect of the ethnic surrounding on the highest completed education is fully mediated by success in compulsory school.
    Keywords: Ethnic enclaves; education; neighborhood effects
    JEL: I20 I21 J15
    Date: 2007–12–19
    URL: http://d.repec.org/n?u=RePEc:hhs:sulcis:2007_008&r=mig
  20. By: Libertad González Luna; Francesc Ortega
    Abstract: In recent years, Spain has received unprecedented immigration flows. Between 2001 and 2006 the fraction of the population born abroad more than doubled, increasing from 4.8% to 10.8%. For Spanish provinces with above-median inflows (relative to population), immigration increased by 24% the number of high school dropouts while only increasing college graduates by 11%. We study different channels by which regional labor markets have absorbed the large increase in relative supply of low educated workers. We identify the exogenous supply shock using historical immigrant settlement patterns by country of origin. Using data from the Labor Force Survey and the decennial Census, we find a large expansion of employment in high immigration regions. Disaggregating by industry, the absorption operated through large increases in the share of low-educated workers, compared to the same industry in low-immigration regions. We do not find changes in sectoral specialization. Overall, and perhaps surprisingly, the pattern of absorption is very similar to the one found in the US.
    Keywords: Immigration, Open Economies, Rybcszynski, Instrumental Variables
    JEL: J2 F1 O3
    Date: 2007–11
    URL: http://d.repec.org/n?u=RePEc:upf:upfgen:1059&r=mig
  21. By: Claudia Senik; Thierry Verdier
    Abstract: This paper studies the interaction between labor market integration, the evolution of "work values" and entrepreneurial capital inside minority communities. A simple model of labor market segmentation with ethnic capital and endogenous transmission of cultural values inside minority groups is presented. It emphasizes the role of entrepreneurial capital as an important driver of labor market integration and as a promoter of meritocratic work values inside the community. Using a new French survey rich in attitudinal variables, it then proposes an empirical illustration, focusing on the dissimilarity between the labor market integration of South European versus North African second generation immigrants in France. It shows that the contrasted economic and cultural integration of these minorities can be explained away by their different levels of entrepreneurial capital.
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:pse:psecon:2007-37&r=mig
  22. By: Aleksey Oshchepkov
    Abstract: Interregional differentials in nominal wages in the Russian Federation are huge compared to other countries. Using the NOBUS micro-data and a methodology based on the estimation of the wage equation augmented by aggregate regional characteristics, we show that these differentials have a compensative nature. Russian workers receive wage compensations for living in regions with a higher price level and worse non-pecuniary characteristics, such as a relatively low life expectancy, a high level of air pollution, poor medical services and a colder climate. After adjusting for these regional characteristics, the relative ranking of regions in terms of average wages changes considerably. Moreover, regional nominal wages become positively correlated with interregional migration flows. According to our estimates, half of the interregional wage variation between workers with similar productive characteristics should be considered to be compensative. These results support the view that the best policy reaction to the current high interregional wage differentials should be the removal of migration barriers and a reduction in migration costs. In general, our results show that wage compensations for regional disamenities along with differences in employment composition are able to account for about three fourths of the observed interregional variation in wages.
    Keywords: compensating differentials, regional wages, wage equation, interregional migration, transition, Russia
    JEL: J3 J6 P2 R1 R2
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwwpp:dp750&r=mig
  23. By: Shaun K. Roache; Ewa Gradzka
    Abstract: We use a range of methods and remittance data from 1990 to 2007 to assess the strength and significance of linkages between remittance flows to Latin America and the U.S. business cycle. All of the evidence suggests that remittance flows are relatively insensitive to fluctuations in the U.S. cycle, underlining their role as a stable source of external financing, in good times and bad. A number of factors, notwithstanding uncertainties related to official remittance data reliability, might explain this result, including remittance smoothing and flexible immigrant labor markets.
    Keywords: Workers remittances , Latin America , Labor markets ,
    Date: 2007–12–07
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:07/273&r=mig
  24. By: Wang-Sheng Lee (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
    Abstract: This paper shows how some simple modifications to the classical Heckscher-Ohlin model in international trade can be made so that it can be used to analyse the impact of immigration on wages. In particular, this is accomplished by constructing a model in which countries have very different endowments of factors, reside in different diversification cones and specialise in production. In such a model, it is not necessary that factor prices are equalised across countries. Based on simulation results of this modified Heckscher-Ohlin model, it is found that the actual immigrant flow in the U.S. from 1979 to 1995 is unlikely to be a major contributor to the observed high-skill/low-skill wage gap increase over the period. This paper shows how some simple modifications to the classical Heckscher-Ohlin model in international trade can be made so that it can be used to analyse the impact of immigration on wages. In particular, this is accomplished by constructing a model in which countries have very different endowments of factors, reside in different diversification cones and specialise in production. In such a model, it is not necessary that factor prices are equalised across countries. Based on simulation results of this modified Heckscher-Ohlin model, it is found that the actual immigrant flow in the U.S. from 1979 to 1995 is unlikely to be a major contributor to the observed high-skill/low-skill wage gap increase over the period.
    Keywords: Immigration, Heckscher-Ohlin, multi-cone, general equilibrium.
    Date: 2007–03
    URL: http://d.repec.org/n?u=RePEc:iae:iaewps:wp2007n07&r=mig
  25. By: Pilar Cuadrado (Banco de España); Aitor Lacuesta (Banco de España); José María Martínez (Banco de España); Eduardo Pérez (Banco de España)
    Abstract: This paper develops a projection of the Spanish aggregate participation rate between 2004 and 2020. We construct independent projections by nationality and gender using micro-data from the Labour Force Survey (1977-2004). When estimating the participation of individuals with Spanish citizenship we consider the impact of the NAIRU, changes attributed to the birth cohort and both the age and the educational attainment distributions. When estimating the participation rate of immigrants, we consider their age distribution as long as their recent changes in terms of the origin country composition. Moreover, for female immigrants we also consider their birth cohort. As a result, we find that changes in the participation rate of males and females due to belonging to different birth cohorts are vanishing over time. On the other hand, the change in the composition of immigrants appears to be a factor that could perpetuate over time a little bit longer. In aggregate terms, the educational upgrade of the population and the continuous increase in the participation of females compensate the aging of the population to keep the growth, although at a lower speed, of the participation rate within the whole considered period.
    Keywords: capital humano, inmigración, proyecciones demográficas, tasa de actividad
    JEL: J00
    Date: 2007–10
    URL: http://d.repec.org/n?u=RePEc:bde:wpaper:0732&r=mig
  26. By: Anita I. Drever
    Abstract: In contrast to most research on the effects on residents of living in an ethnic neighborhood, this paper explores how living within an ethnic neighborhood affects members of the dominant ethnic group - in this case Germans - rather than the minorities that define it. The results indicate that Germans living within ethnic neighborhoods are less well off financially than their peers in other parts of the city, and are more likely to be living in large buildings in need of repair. The analysis did not however suggest that Germans living in ethnic neighborhoods have fewer social contacts, or that they are more likely to be unemployed. Indeed, Germans living within ethnic neighborhoods reported levels of satisfaction with their housing and standard of living equal to Germans elsewhere. These results would seem to paint a rosy picture of the lives of German residents of ethnic neighborhoods, were it not for a notable absence of school-aged German children within these spaces.
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp48&r=mig
  27. By: Burkert, Carola (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Seibert, Holger (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "German in-firm vocational training combines training on the job and learning in vocational schools. The so called 'dual system' absorbs roughly two thirds of German school leavers every year. After between two and four years of standardized training, it provides them with a generally accepted qualification in a wide range of occupations. Using Spence's Signaling Theory, hypotheses are derived concerning different labour market outcomes of foreigners who successfully completed an in-firm vocational training course and their German counterparts. The integration potential of the dual system is tested empirically according to its risk factors unemployment, occupational mismatch and skill mismatch using longitudinal registration data (1977-2004). Different nationalities are compared with Germans with respect to their first employment after leaving the dual system. Today, most of the young migrants who go through the dual system are as successful on the labour market as Germans. In-firm vocational training apparently provides migrant youth with the skills and techniques necessary for a successful transition to the labour market. However, they have restricted transition chances due to having higher unemployment rates, occupational mismatch and skill mismatch. But even if we control for relevant variables that determine transition chances, restrictions at labour market entry still remain for individual nationalities: compared to Germans, migrant men and especially migrant women have a higher risk of unemployment and occupational mismatch." (author's abstract, IAB-Doku) ((en))
    Keywords: Jugendliche, ausländische Jugendliche, berufliche Integration, betriebliche Berufsausbildung, Arbeitsmarktchancen
    JEL: J62 J64 J71
    Date: 2007–12–18
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:200731&r=mig
  28. By: Woong Lee
    Abstract: At the turn of the 20th century, state and local governments in the United States began to establish public employment offices. These non-profit governmental organizations match job seekers and businesses, one of their main objectives being to protect job seekers from fraudulent activities by private employment agencies. In this paper, I propose a theory that describes the malpractices of private employment agencies as a situation of asymmetric information between job seekers and the private employment agencies, which could cause adverse selection in the labor exchange market. The establishment of public employment offices can be viewed as a policy device to eliminate low-quality private employment agencies committing malpractices. I show that public employment offices helped lower the degree of asymmetric information. The majority of job seekers who used public employment offices were unskilled workers, immigrants, or migrants who were vulnerable to exploitation by private employment agencies. I also find that the role of public employment offices was especially important for interstate migrants who were most lacking in information and networks in their new environment.
    JEL: J4 N3 N4
    Date: 2007–12
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:13695&r=mig

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