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on Economics of Human Migration |
| By: | Mukhopadhyay, Sankar (University of Nevada, Reno); Zou, Miaomiao (Nanjing University) |
| Abstract: | As more and more developed countries adopt policies that favor highly educated immigrants, the impact of such policies on developing countries remains unclear. Some researchers have argued that migrants who are more educated tend to bring their immediate family members to the host country, and thus, send less money to the source country in remittances. While there is numerous papers documenting association between education and remittance, whether that is related to sponsorship decision remains under-explored. Using individual level panel data from the New Immigrant Survey, we show that sponsoring family members leads to lower remittance. Furthermore, we show that college educated immigrants from high-income families are less likely to sponsor relatives, presumably because of relatively higher opportunity cost of migration of their relatives. Together, these two results suggest a positive association between education and remittances, which is indeed, what we find in the data. Our extended analysis shows that alternative explanations (such as higher income of more educated immigrants, or repaying implicit educational loans) cannot completely explain the positive association between education and remittances. Our results suggest that skill-based immigration policies are likely to result in more remittances. |
| Keywords: | immigration, remittance, sponsorship, education |
| JEL: | O15 F22 F24 J61 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11330&r=mig |
| By: | Clarke, Andrew (University of Melbourne); Ferrer, Ana (University of Waterloo); Skuterud, Mikal (University of Waterloo) |
| Abstract: | We examine data from Australia, Canada, and the U.S. to inform the potential for immigrant screening policies to influence the labour market performance of skilled immigrants. Our estimates point to improvements in employment rates and weekly earnings of male university-educated immigrants in all three countries concomitant with skilled immigration policy reforms. Nonetheless, the gains are modest in comparison to a substantial and persistent performance advantage of U.S. skilled immigrants. Given that there is increasingly little to distinguish the skilled immigration policies of these countries, we interpret the U.S. advantage as primarily reflecting the relative positive selectivity of U.S. immigrants. |
| Keywords: | skilled migration, immigrant selection policies, immigrant labour market performance |
| JEL: | J24 J15 J08 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11344&r=mig |
| By: | Brück, Tilman (ISDC - International Security and Development Center); Mahe, Clotilde (Maastricht University); Naudé, Wim (Maastricht University) |
| Abstract: | A common finding of the migration literature is that migrants are more likely to choose self-employment upon return to their origin countries than non-migrants. This has led to the belief that return migration stimulates entrepreneurship in source countries and hence supports economic development. In this paper, we test these assertions, drawing on the Life in Kyrgyzstan Study, a rich longitudinal data set from a transition economy with high levels of international temporary migration. We find that for return migrants, self-employment is often a temporary occupational choice, suggesting that self-employment serves as a 'parking lot'. In addition, we find evidence that return migrants who were self-employed before migrating are less likely to opt for self-employment on their return, implying that migration disrupts self-employment trajectories. Both findings cast doubt on the common narrative of return migration stimulating entrepreneurship and therefore economic development. |
| Keywords: | occupational choice, entrepreneurship, migration, transition economies, Central Asia, Kyrgyzstan |
| JEL: | F22 J24 L26 P20 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11332&r=mig |
| By: | Fasani, Francesco (Queen Mary, University of London); Frattini, Tommaso (University of Milan); Minale, Luigi (Universidad Carlos III de Madrid) |
| Abstract: | In this paper, we use repeated cross-sectional survey data to study the labour market performance of refugees across several EU countries and over time. In the first part, we document that labour market outcomes for refugees are consistently worse than those for other comparable migrants. The gap remains sizeable even after controlling for individual characteristics as well as for unobservables using a rich set of fixed effects and interactions between area of origin, entry cohort and destination country. Refugees are 11.6 percent less likely to have a job and 22.1 percent more likely to be unemployed than migrants with similar characteristics. Moreover, their income, occupational quality and labour market participation are also relatively weaker. This gap persists until about 10 years after immigration. In the second part, we assess the role of asylum policies in explaining the observed refugee gap. We conduct a difference-in-differences analysis that exploits the differential timing of dispersal policy enactment across European countries: we show that refugee cohorts exposed to these polices have persistently worse labour market outcomes. Further, we find that entry cohorts admitted when refugee status recognition rates are relatively high integrate better into the host country labour market. |
| Keywords: | asylum seekers, assimilation, refugee gap, asylum policies |
| JEL: | F22 J61 J15 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11333&r=mig |
| By: | Dehos, Fabian T. |
| Abstract: | Does refugee migration cause crime? I address this question drawing on recent refugee migration to Germany during the years 2010 to 2015. Based on administrative data records, I add to the literature by disentangling the direct crime impact of asylum seekers and recognized refugees separately. For the group of asylum seekers, I exploit dispersal policies and locational restrictions and find no impact on crime except for migrationspecific offenses. For the group of recognized refugees, who may endogenously move, I use a shift-share instrument and find a positive association between the share of recognized refugees and the overall crime rate, which is driven by non-violent property crimes and frauds. The empirical results prove robust along several robustness checks and are consistent with predictions of the Becker model. |
| Keywords: | refugee migration,crime |
| JEL: | F22 K42 J15 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:737&r=mig |
| By: | Francesca Borgonovi |
| Abstract: | The ability of societies to preserve social cohesion in the presence of large migration flows depends on their capacity to integrate immigrants. Education can help immigrants acquire skills and contribute to the host-country economy; it can also foster immigrants’ social and emotional well-being and sustain their motivation to participate in the social and civic life of their new communities – and, by doing so, help them integrate more easily. But ensuring that students with an immigrant background have good well-being outcomes represents a significant challenge, because many immigrant or mixed-heritage students must overcome the adversities associated with displacement, socio-economic disadvantage, language barriers and the difficulty of forging a new identity all at the same time. |
| Date: | 2018–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduddd:82-en&r=mig |
| By: | Geraldine Bocquého; Marc Deschamps; Jenny Helstroffer; Julien Jacob; Majlinda Joxhe |
| Abstract: | This paper uses the experimental setup of Tanaka et al. (2010) to measure refugees’ risk preferences. A sample of 206 asylum seekers was interviewed in 2017-18 in Luxembourg. Contrary to studies which focus on risk aversion in general, we analyze its components using a cumulative prospect theory (CPT) framework. We show that refugees exhibit particularly low levels of risk aversion compared to other populations and that CPT provides a better fit for modelling risk attitudes. Moreover, we include randomised temporary treatments provoking emotions and find a small significant impact on probability distortion. Robustness of the Tanaka et al. (2010) experimental framework is confirmed by including treatments regarding the embedding effect. Finally, we propose a theoretical model of refugee migration that integrates the insights from our experimental outcomes regarding the functional form of refugees’ decision under risk and the estimated parameter values. The model is then simulated using the data from our study. |
| Keywords: | Refugee migration, risk preferences, experimental economics, cumulative prospect theory, psychological priming. |
| JEL: | C93 D74 D81 D91 F22 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2018-16&r=mig |
| By: | Majlesi, Kaveh (Lund University); Narciso, Gaia (Trinity College Dublin) |
| Abstract: | We analyze the effects of the increase in China's import competition on Mexican domestic and international migration. We exploit the variation in exposure to competition from China, following its accession to the WTO in 2001, across Mexican municipalities and estimate the effect of international competition on the individual decision to migrate. Controlling for individual and municipality features, we find that individuals living in municipalities more exposed to Chinese import competition are more likely to migrate to other municipalities within Mexico, while a negative effect is found on the decision to migrate to the US. In particular, we find that Chinese import competition reduces migrants' negative self- selection: the rising international competition lowers the likelihood of low-educated, low-income people to migrate to the US, by making them more financially constrained. We do not find any evidence that changes in demand for Mexican workers in the US drive our results. |
| Keywords: | import competition, domestic migration, international migration, negative self-selection |
| JEL: | F14 F16 F22 O15 R23 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11346&r=mig |
| By: | Lochmann, Alexia (University of Paris 1 Panthéon-Sorbonne, PSE); Rapoport, Hillel (Paris School of Economics); Speciale, Biagio (Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | We examine the impact of language training on the economic integration of immigrants in France. The assignment to this training, offered by the French Ministry of the Interior, depends mainly on a precise rule: the training is provided if the test score of an initial language exam is below a certain threshold. This eligibility rule creates a discontinuity in the relation between the test result and the variables of interest, which is used to estimate the causal effect of language training, through the method of Regression Discontinuity Design. We find that the number of assigned hours of training significantly increases labor force participation of the treated individuals. The language classes appear to have a larger effect for labor migrants and refugees relative to family migrants, for men and individuals below the median age, and for individuals with higher levels of education. Our estimated coefficients are remarkably similar when we rely on local linear regressions using the optimal bandwidth with few observations around the threshold and when we control parametrically for a polynomial of the forcing variable and use the whole estimation sample. We discuss extensively why manipulation of the entry test score is theoretically unlikely and show robustness checks that consider the possibility of misclassification. We conclude with a discussion of the candidate mechanisms for the improved labor market participation of immigrants. |
| Keywords: | immigrants' integration, language training, Regression Discontinuity Design |
| JEL: | J15 J61 J68 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11331&r=mig |
| By: | Marcel Lincényi (Alexander Dubček University of Trenčín) |
| Abstract: | The research study offers an analysis of the current Slovak public opinion on the issue of migration in the context of the current refugee crisis, while also offering prevailing opinions, attitudes, preferences and values of the Slovaks to the possible arrival of asylum seekers in Slovakia. The study also provides the Slovak citizens' opinions on possible solutions to the refugee crisis. From realized analysis public opinion of the citizens has emerged with serious stance on the issue of migration. It should be noted that a similar approach is also seen in other countries of the Visegrad Group. We think that improving public opinion on citizens' attitudes regarding migration would demand the politicians an educating campaign not only in Slovakia but across the whole European Union. The European Commission may need to promote multicultural education. |
| Keywords: | public opinion,research,Slovak Republic,entrepreneurship ecosystem,European migrant crisis,refugee |
| Date: | 2017–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01706893&r=mig |
| By: | Dagnelie, Olivier (University of Rennes); Mayda, Anna Maria (Georgetown University); Maystadt, Jean Francois (Lancaster University) |
| Abstract: | We investigate whether entrepreneurs in the network of refugees - from the same country of origin - help refugees' labor-market integration by hiring them in their businesses. We analyze the universe of refugee cases without U.S. ties who were resettled in the United States between 2005 and 2010. We address threats to identification due to sorting of refugees into specific labor markets and to strategic placement by resettlement agencies. We find that the probability that refugees are employed 90 days after arrival is positively affected by the number of business owners in their network, but negatively affected by the number of those who are employees. This suggests that network members who are entrepreneurs hire refugees in their business, while network members working as employees compete with them, consistent with refugees complementing the former and substituting for the latter. |
| Keywords: | refugees, labor market integration, entrepreneurship |
| JEL: | F22 J61 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11343&r=mig |
| By: | Celia Melguizo Cháfe (QR-IREA, University of Barcelona); Vicente Royuela (AQR-IREA, University of Barcelona) |
| Abstract: | In Spain, economic disparities between regions have traditionally played a relevant role in migration. Nevertheless, during the previous high-instability period, analyses provided conflicting results about the effect of these variables. In this work, we aim to determine the role that labour market factors play in internal migration during the Great Recession, paying special attention to the migration response of the heterogeneous population groups. To do so, we resort to an extended gravity model and we consider as a territorial unit the 45 Spanish Functional Urban Areas. Our results point to real wages as having a significant influence on migration motivations. |
| Keywords: | Migration, Spanish urban areas, Labour market factors JEL classification: C23, J61, R23 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201709&r=mig |
| By: | Mayda, Anna Maria; Ortega, Francesc; Peri, Giovanni; Shih, Kevin; Sparber, Chad |
| Abstract: | The H-1B program allows skilled foreign-born individuals to work in the United States. The annual quota on new H-1B issuances fell from 195,000 to 65,000 for employees of most firms in fiscal year 2004. This cap did not apply to new employees of colleges, universities, and non-profit research institutions. Existing H-1B holders seeking to renew their visa were also exempt from the quota. Using a triple difference approach, this paper demonstrates that cap restrictions significantly reduced the employment of new H-1B workers in for-profit firms relative to what would have occurred in an unconstrained environment. Employment of similar natives in for-profit firms did not change, consistent with a low degree of substitutability between H-1B and native workers. The restriction also redistributed H-1Bs toward computer-related occupations, Indian-born workers, and firms using the H-1B program intensively. |
| Keywords: | H-1B; Natural Experiment; Skilled Workers |
| JEL: | F22 J61 O33 R10 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12736&r=mig |
| By: | Julie L. Hotchkiss; Anil Rupasingha |
| Abstract: | This paper determines how individual, relative to community social capital affects individual migration decisions. We make use of non-public data from the Social Capital Community Benchmark Survey to predict multi-dimensional social capital for observations in the Current Population Survey. We find evidence that individuals are much less likely to have moved to a community with average social capital levels lower than their own and that higher levels of community social capital act as positive pull-factor amenities. The importance of that amenity differs across urban/rural locations. We also confirm that higher individual social capital is a negative predictor of migration. |
| Keywords: | social capital, migration, Current Population Survey, amenities, non-public data, factor analysis |
| JEL: | R23 D71 C36 C38 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:18-14&r=mig |
| By: | Neil Foster-McGregor (The Vienna Institute for International Economic Studies, wiiw); Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Isilda Mara (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | In this paper we examine the importance of migrant stocks on FDI flows from a sample of 19 developed countries to around 150 partner countries using a modified version of the gravity model. Based on recent advances in the modelling of trade using the gravity model we include a variety of fixed effects to control for various sources of endogeneity and deal with the issue of many zero and negative values of FDI. We further adopt an instrumental variables approach to deal with potential simultaneity. Results suggest that migrant stocks are positively associated with higher FDI inflows and outflows, with the effects working largely by enhancing the strength of existing FDI relationships rather than developing new relationships. We find little evidence of heterogeneous effects by skill level of the migrants. |
| Keywords: | migration, FDI flows, gravity equation |
| JEL: | F22 F23 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:141&r=mig |
| By: | Axel Dreher; Andreas Fuchs; Sarah Langlotz |
| Abstract: | This article analyzes whether foreign aid affects the net flows of refugees from recipient countries. Combining refugee data on 141 origin countries over the 1976-2013 period with bilateral Official Development Assistance data, we estimate the causal effects of a country’s aid receipts on both total refugee flows to the world and flows to donor countries. The interaction of donor-government fractionalization and a recipient country’s probability of receiving aid provides a powerful and excludable instrumental variable, when we control for country- and time-fixed effects that capture the levels of the interacted variables. Although our results suggest that aid induces recipient governments to encourage the return of their citizens, we find no evidence that aid reduces worldwide refugee outflows or flows to donor countries in the short term. However, we observe long-run effects after four three-year periods, which appear to be driven by lagged positive effects of aid on growth. |
| Keywords: | foreign aid, Official Development Assistance, migration, refugees, displaced people, humanitarian crises, repatriation policies |
| JEL: | F22 F35 F59 H84 O15 O19 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6885&r=mig |
| By: | Oggenfuss, Chantal (Swiss Co-ordination Center for Research in Education); Wolter, Stefan C. (University of Bern) |
| Abstract: | We analyze the internal mobility of university graduates in Switzerland. An empirically interesting question because not all the cantons have a university and therefore in some cantons students have to leave their home for studying but all the cantons have to bear the public costs for studying for their students irrespective of their study place. On average, approximately half of the students who had left their home canton in order to study, return to their home canton, and about half of those who do not return move onward from the canton where they studied to a third canton. Controlling for several factors explaining graduate mobility, we find that top performing students return less often than do low performers. As a consequence the home cantons, which cover the bulk of the costs also for the students that had left for studying in another canton, face a quantitative and qualitative disadvantage when losing mobile graduates. |
| Keywords: | student mobility, graduate mobility, brain gain, brain drain |
| JEL: | H52 H75 I23 J61 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11349&r=mig |
| By: | Erin K. Fletcher; Seth R. Gitter (Department of Economics, Towson University); Savannah Wilhelm |
| Abstract: | There are over two million displaced children worldwide living in established refugee camps. Many of these children have escaped violent conflict in their country, but still are victims of violence in camps. Yet, little is known about this violence and how camp residents subsequently react to it. We examine the issue of reporting violence using a sample of over 300 child-parent pairs of Burundian and Congolese refugees residing in Nyarugusu camp in Tanzania. To elicit social norms around reporting violence against children we use fictional vignettes of violent situations with randomized characteristics against a hypothetical child to measure parents’ and children’s perceptions of when children will report violence. Parents and children have similar beliefs that the vignette victims are more likely to report violence in school than in other locations. One contrast is that parents believe victims are more likely to report sexual violence than other types of violence while children do not. Additionally, we find a strong relationship between a parent and their child’s beliefs of when the hypothetical victim would report violence. |
| Keywords: | Violence, children, refugees, Nyarugusu, refugee camp, Burundi, Democratic Republic of Congo. |
| JEL: | F22 O15 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:tow:wpaper:2018-01&r=mig |
| By: | Tindara Addabbo; Maddalena Davoli; Marina Murat |
| Abstract: | Gender and origin background are widely accepted in the economics of education literature as factors that highly correlate with educational outcomes. However, little attention has been devoted so far to the interaction of these two dimensions. We use Italian data from PISA 2015 to investigate potential immigrant-gender gaps in education. We find that, as expected, girls outperform boys in reading and are outperformed by them in math and science. In addition, immigrant students’ scores are persistently below those of natives. However, interestingly, we find that being immigrant and female does not imply a double disadvantage in math and science. On the contrary, immigrant girls slightly compensate for the immigrant gap in all disciplines. Moreover, the wider gap we find is that of immigrant boys in reading: it ranges from to 0.66 to 2 school years with respect to native boys. Language spoken at home is one of the main cofactors affecting immigrant boy’s scores. Targeted policies should therefore be implemented. |
| Keywords: | immigrant-gender gap, education, OECD-PISA |
| JEL: | I24 F22 J16 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:mod:recent:136&r=mig |
| By: | Grimm, Stefan; Klimm, Felix |
| Abstract: | Do people blame refugees for negative events? We propose a novel experimental paradigm to measure discrimination in responsibility attribution towards Arabic refugees. Participants in the laboratory experience a positive or negative income shock, which is with equal probability caused by a random draw or another participant’s performance in a real effort task. Responsibility attribution is measured by beliefs about whether the shock is due to the other participant’s performance or the random draw. We find evidence for reverse discrimination: Natives attribute responsibility more favorably to refugees than to other natives. In particular, refugees are less often held responsible for negative income shocks. Moreover, natives with negative implicit a sociations towards Arabic names attribute responsibility less favorably to refugees than natives with positive associations. Since neither actual performance differences nor beliefs about natives’ and refugees’ performance can explain our finding of reverse discrimination, we rule out statistical discrimination as the driving force. We discuss explanations based on theories of self-image and identity concerns. |
| Keywords: | Refugees; discrimination; responsibility attribution |
| JEL: | C91 D03 D83 J15 |
| Date: | 2018–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:42657&r=mig |
| By: | Alisi Kautoke-Holani |
| Abstract: | Since the commencement of the Pacific Agreement on Closer Economic Relations Plus negotiations in 2009, the Pacific Forum Island Countries have maintained that their main gain from this Free Trade Agreement is in labour mobility. Free Trade Agreements, such as the Pacific Agreement on Closer Economic Relations Plus, are considered crucial for enhancing labour mobility gains for Pacific Forum Island Countries, particularly given the constraints associated with multilateral trade agreements and unilateral initiatives. In June 2017, the Pacific Agreement on Closer Economic Relations Plus was signed and included a side-arrangement on labour mobility. This article discusses the role of the Agreement in enhancing the development impact of labour mobility in Pacific sending countries and examines the text of the Movement of Natural Persons Chapter and the Arrangement on Labour Mobility to determine the potential gains for Pacific Forum Island Countries. |
| Keywords: | labour mobility, PACER Plus, Pacific, international trade, SWP |
| Date: | 2018–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:een:appswp:201807&r=mig |
| By: | Jauer, Julia (Federal Ministry of Labor and Social Affairs (BMAS), Germany); Liebig, Thomas (OECD); Martin, John P. (University College Dublin); Puhani, Patrick A. (Leibniz University of Hannover) |
| Abstract: | We estimate whether migration can be an equilibrating force in the labour market by comparing pre- and post-crisis migration movements at the regional level in both Europe and the United States, and their association with asymmetric labour market shocks. Based on fixed-effects regressions using regional panel data, we find that Europe's migratory response to unemployment shocks was almost identical to that recorded in the United States after the crisis. Our estimates suggest that, if all measured population changes in Europe were due to migration for employment purposes – i.e. an upper-bound estimate – up to about a quarter of the asymmetric labour market shock would be absorbed by migration within a year. However, in Europe and especially in the Eurozone, the reaction to a very large extent stems from migration of recent EU accession country citizens as well as of third-country nationals. |
| Keywords: | free mobility, migration, economic crisis, labour market adjustment, Eurozone, Europe, United States |
| JEL: | F15 F22 J61 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11328&r=mig |
| By: | Harounan Kazianga (Oklahoma State University); Zaki Wahhaj (University of Kent) |
| Abstract: | We present findings from a pilot study exploring whether and how existing ties between urban migrants and rural farmers may be used to provide the latter improved access to formal insurance. Urban migrants in Ouagadougou (the capital of Burkina Faso) originating from nearby villages were offered, at the prevailing market price, a rainfall index insurance product that can potentially protect their rural relatives from adverse weather shocks. The product had an uptake of 22% during the two-week subscription window. Uptake rates were higher by 17-22 ppts among urban migrants who were randomly offered an insurance policy that would make pay-outs directly to the intended beneficiary rather than the subscriber. We argue that rainfall index insurance can complement informal risk-sharing networks by mitigating problems of informational asymmetry and self-control issues. |
| Keywords: | Microinsurance markets, Indexed insurance, Rainfall, Migration, Informal insurance networks |
| JEL: | O15 O16 G21 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:okl:wpaper:1802&r=mig |