nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2013‒09‒26
ten papers chosen by
Yuji Tamura
La Trobe University

  1. South-South migration and the labor market: Evidence from South Africa By Facchini, Giovanni; Mayda, Anna Maria; Mendola, Mariapia
  2. Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries. Country report: Ukraine By Tom Coupé; Hannah Vakhitova
  3. Immigrants and Native Workers: New Analysis Using Longitudinal Employer-Employee Data By Mette Foged; Giovanni Peri
  4. European migration, national origin and long-term economic development in the US By Rodríguez-Pose, Andrés; von Berlepsch, Viola
  5. Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries. Country report: Armenia By Gagik Makaryan; Mihran Galstyan
  6. Migration, wages and fiscal competition By Jean Gabszewicz; Ornella Tarola; Skerdilajda Zanaj
  7. The Caloric Costs of Culture: Evidence from Indian Migrants By Atkin, David
  8. Immigration, Wages, and Education: A Labor Market Equilibrium Structural Model By Joan Llull
  9. Land Access and Youth Livelihood Opportunities in Southern Ethiopia By Holden, Stein; Bezu, Sosina
  10. Moving to a Job: The Role of Home Equity, Debt, and Access to Credit By Demyanyk, Yuliya; Hryshko, Dmytro; Luengo-Prado, Maria Jose; Sørensen, Bent E

  1. By: Facchini, Giovanni; Mayda, Anna Maria; Mendola, Mariapia
    Abstract: Using census data for 1996, 2001 and 2007 we study the labor market effect of immigration to South Africa. The paper contributes to a small but growing literature on the impact of South-South migration by looking at one of the most attractive destinations for migrant workers in Sub--Saharan Africa. We exploit the variation -- both at the district level and at the national one -- in the share of foreign--born male workers across schooling and experience groups over time. At the district level, we estimate that increased immigration has a negative and significant effect on natives' employment rates -- and that this effect is more negative for skilled and white South African native workers -- but not on total income. These results are robust to using an instrumental variable estimation strategy. At the national level, we find that increased immigration has a negative and significant effect on natives' total income but not on employment rates. Our results are consistent with outflows of natives to other districts as a consequence of migration, as in Borjas (2006).
    Keywords: Immigration; Labor market effects; South Africa
    JEL: F22 J61
    Date: 2013–04
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9450&r=mig
  2. By: Tom Coupé; Hannah Vakhitova
    Abstract: Ukraine is a migration-intensive country, with an estimated 1.5-2 million labour migrants (about 5% of the working-age population). Slightly over a half of these migrants travel for work to the EU. This study discusses the impact of this large pool of migrants on both the sending and receiving countries. It also assesses how liberalisation of the EU visa regime, something that the EU is currently negotiating with Ukraine, will affect the stream of Ukrainian labour migrants to EU countries. Our study suggests that the number of tourists will increase substantially, whereas the increase in the number of labour migrants is unlikely to be very large. We also suggest that the number of legal migrants is likely to increase, but at the same time the numer of illegal migrants will decline because currently only a third of migrants from Ukraine have both residence and work permits in the EU, while about a quarter of them stay there illegally.
    Keywords: Labour Economics, Labour Markets, Labour Mobility, Ukraine
    JEL: D78 F22 F24 I25 J01 J15 J40 J61 J83
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:sec:cnstan:0464&r=mig
  3. By: Mette Foged; Giovanni Peri
    Abstract: Using a database that includes the universe of individuals and establishments in Denmark over the period 1991-2008 we analyze the effect of a large inflow of non-European (EU) immigrants on Danish workers. We first identify a sharp and sustained supply-driven increase in the inflow of non-EU immigrants in Denmark, beginning in 1995 and driven by a sequence of international events such as the Bosnian, Somalian and Iraqi crises. We then look at the response of occupational complexity, job upgrading and downgrading, wage and employment of natives in the short and long run. We find that the increased supply of non-EU low skilled immigrants pushed native workers to pursue more complex occupations. This reallocation happened mainly through movement across firms. Immigration increased mobility of natives across firms and across municipalities but it did not increase their probability of unemployment. We also observe a significant shift in the native labor force towards complex service industries in locations receiving more immigrants. Those mechanisms protected individual wages from immigrants competition and enhanced their wage outcomes. While the highly educated experienced wage gains already in the short-run, the gains of the less educated built up over time as they moved towards jobs that were complementary to those held by the non-EU immigrants.
    JEL: F22 J24 J61
    Date: 2013–08
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19315&r=mig
  4. By: Rodríguez-Pose, Andrés; von Berlepsch, Viola
    Abstract: Have Irish, German or Italian settlers arriving in the US at the turn of the 20th century left an institutional trace which determines economic development differences to this day? Does the national origin of migrants matter for long-term development? This paper explores whether the distinct geographical settlement patterns of European migrants according to national origin affected economic development across US counties. It uses micro-data from the 1880 and 1910 censuses in order to identify where migrants from different nationalities settled and then regresses these patterns on current levels of economic development, using both OLS and instrumental variable approaches. The analysis controls for a number of factors which would have determined both the attractiveness of different US counties at the time of migration, as well as current levels of development. The results indicate that while there is a strong and positive impact associated with overall migration, the national origin of migrants does not make a difference for the current levels of economic development of US counties.
    Keywords: Counties; Economic Development; Ethnic/National Origin; Institutions; Migration; USA
    JEL: F22 N91 O15 R23
    Date: 2013–04
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9444&r=mig
  5. By: Gagik Makaryan; Mihran Galstyan
    Abstract: The purpose of this study is to explore and assess the costs and benefits of labour migration in Armenia and the potential of migration for contributing to the country’s development. We also examine how policy can be effectively formulated and implemented so that Armenia can get the most out of its migration experience. Lastly, we analyse how a phenomenon that emerged because of limited opportunities for employment – migration – evolved into a strategy towards development and prosperity. Based on this analysis, this paper makes a strong argument in favour of implementing programs in Armenia that involve the active collaboration of government institutions and the Armenian Diaspora, duly considering the unusual influence the latter has on Armenia’s economic and human development.
    Keywords: Labour Economics, Labour Markets, Labour Mobility, Armenia
    JEL: D78 F22 F24 I25 J01 J15 J40 J61 J83
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:sec:cnstan:0461&r=mig
  6. By: Jean Gabszewicz (CORE, Universite catholique de Louvain, Belgique); Ornella Tarola (DAES, University of Rome, La Sapienza, Italy); Skerdilajda Zanaj (CREA, Universite de Luxembourg)
    Abstract: We analyze the effects of labor migration flows on income taxation between two countries (regions) differing by the size of their population and the level of productive efficiencies. Residents, otherwise identical, are heterogeneous because they incur different migration costs. Each resident compares the post-tax amount of money at home with the one obtained abroad, including the cost of migration. The government in each coun- try maximizes the tax receipt in order to provide the largest possible amount of public good. We prove the existence of an equilibrium for any configuration of wage and any different relative size of the countries (re- gions). Then, we compute and characterize the equilibrium for any set of parameters, size and wage differential. Finally, we show how equili- brium migration flows affect the level of income taxation in the origin and destination country.
    Keywords: migration, income tax, fiscal competition
    JEL: F22 H20
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:luc:wpaper:13-19&r=mig
  7. By: Atkin, David
    Abstract: Anthropologists have long documented substantial and persistent differences across social groups in the preferences and taboos for particular foods. One natural question to ask is whether such food cultures matter in an economic sense. In particular, can culture constrain caloric intake and contribute to malnutrition? To answer this question, I first document that inter-state migrants within India consume fewer calories per Rupee of food expenditure compared to their non-migrant neighbors, even for households with very low caloric intake. I then form a chain of evidence in support of an explanation based on culture: that migrants make nutritionally-suboptimal food choices due to cultural preferences for the traditional foods of their origin states. First, I focus on the preferences themselves and document that migrants bring their origin-state food preferences with them when they migrate. Second, I link together the findings on caloric intake and preferences by showing that the gap in caloric intake between locals and migrants is related to the suitability and intensity of the migrants' origin-state food preferences: the most adversely affected migrants (households in which both husband and wife migrated to a village where their origin-state preferences are unsuited to the local price vector) would consume 7 percent more calories if they possessed the same preferences as their neighbors.
    Keywords: Culture; India; Migrants; Nutrition
    JEL: D12 I10 O10 Z10
    Date: 2013–07
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9542&r=mig
  8. By: Joan Llull
    Abstract: This paper analyzes the effect of immigration on wages taking into account human capital and labor supply adjustments. Using U.S. micro-data for 1967-2007, I estimate a labor market equilibrium model that includes endogenous decisions on education, participation, and occupation, and allows for skill-biased technical change. Results suggest important labor market adjustments that mitigate the effect of immigration on wages. These adjustments include career switches, labor market detachment and changes in schooling decisions, and are heterogeneous across the workforce. The adjustments generate substantial self-selection biases at the lower tail of the wage distribution that are corrected by the estimated model.
    Keywords: immigration, wages, human capital, labor supply, dynamic discrete choice, labor market equilibrium
    JEL: J2 J31 J61
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:bge:wpaper:711&r=mig
  9. By: Holden, Stein (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Bezu, Sosina (Centre for Land Tenure Studies, Norwegian University of Life Sciences)
    Abstract: This study aims to examine current land access and youth livelihood opportunities in Southern Ethiopia. Access to agricultural land is a constitutional right for rural residents of Ethiopia. We used survey data from the relatively land abundant districts of Oromia Region and from the land scarce districts of Southern Nations, Nationalities and Peoples’ (SNNP) Region. We found that youth in the rural south have limited potential to obtain agricultural land that can be a basis for viable livelihood. The law prohibits the purchase and sale of land in Ethiopia. We found that land access through allocation from authorities is virtually nonexistent while land that can be obtained from parents through inheritance or gift is too small to establish a meaningful livelihood. The land rental market has restrictions, including on the number of years land can be rented out. Perhaps as a result of limited land access, the youth have turned their back on agriculture. Our study shows that only nine percent of youth in these rural areas plan to pursue farming. The majority are planning non-agricultural livelihoods. We also found a significant rural -urban migration among the youth and especially in areas with severe agricultural land scarcity. Our econometric analyses show that youth from families with larger land holding are less likely to choose non-agricultural livelihood as well as less likely to migrate to urban areas. We suggest here some measures to improve rural livelihood such as creation of non-farm employment opportunities and improvement of land rental markets. We also argue that as a certain level of rural-urban migration is unavoidable, investigating youth migration is essential to design policies that help the migrating youth as well as the host communities.
    Keywords: Youth unemployment; youth livelihood; rural livelihood; migration; Ethiopia
    JEL: J13 Q15 R23
    Date: 2013–09–16
    URL: http://d.repec.org/n?u=RePEc:hhs:nlsclt:2013_011&r=mig
  10. By: Demyanyk, Yuliya; Hryshko, Dmytro; Luengo-Prado, Maria Jose; Sørensen, Bent E
    Abstract: Using credit report data from two of the three major credit bureaus in the United States, we infer with high certainty whether households move to other labor markets defined by metropolitan areas. We estimate how moving patterns relate to labor market conditions, personal credit, and homeownership using panel regressions with fixed effects which control for all constant individual-specific traits. We interpret the patterns through simulations of a dynamic model of consumption, housing, and location choice. We find that homeowners with negative home equity move more than other homeowners, in particular when local unemployment growth is high---overall, negative home equity is not an important barrier to labor mobility.
    Keywords: credit contraint; credit reports; mobility; unemployment
    JEL: D1 E2
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9474&r=mig

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