Lecture 2 Flashcards
‘Ravenstein, (1885)’
19th century migration in the UK using a gravity equation found women migrate more within the home nation than men but migrate smaller distances while men are more likely to move to another nation in the UK
‘Docquier et al., (2009)’
Looking at the influence of high skilled emigrants and the effect they have on the source country. Women more likely to send remittances and have larger effect on child development. More high-skilled women migrating the less likely the nation will have high skilled children, so high-skilled women are a greater relative loss to human capital in the source nation. Between 1990-2000 number of high skilled women migrating has increased by 78% so seeing a greater loss on developing nations.
‘Biene et al., (2008)’
If emigration is above 20% the country faces a net loss of human capital
‘World Bank, (2007)’
Shown investment in children’s education has significantly greater effects on human capital for future generations than anything else
‘Chiswick, (1978)’
Believed self-selection of higher ability immigrants occurred during the Age of Mass Migration and as a result after 10 years in the US migrants earned more than identical native workers.
‘Borjas, (1987)’
Introduced the concept of the Borjas model
‘Borjas, (2014)’
Looked at how skill levels of different immigrant groups in the US vary according to the skill composition in the host nation. Using an increase in the Gini coefficient (proxy of returns to skill) for the source country leads to a decline in immigrant earnings on entry.
Negative selection at play, consistent with the Borjas model.
‘Hunt, (2006)’
Looked at migration from East to West Germany between 1990-2000. Following reunification wages, and income inequality lower and unemployment higher in the East. So the high skilled had more to gain in the West and found East Germans with tertiary education were 83% more likely to move relative to apprentices. Because of positive migration the economic factors slowly converged over time.
‘Abramitzky et al., (2012)’
Looked at migration from Norway to the US in the Age of Mass Migration (1850-1915) when over 1/4 of Norwegians migrated. During this period US had no immigration restrictions so selection patterns were exogenous to policy. In 1900 income inequality was higher in Norway than in the US and found Norwegians who migrated were likely to be employed in lower paying jobs than those who stayed in Norway, negative selection
‘Abramitzky, (2009)’
Looking at the study of Israeli kibbutz where there is a full local redistribution of income, so much lower returns to skill in these villages. From the data 1983-1995 kibbutz leavers are more skilled than both stayers and other rural migrants and earn a higher wage upon exit. Paper shows support for the Borjas hypothesis of migrant self-selection
‘Epple and Romer, (1991)’
Using finance literature showed that threat of mobility limits the degree of redistribution of income in a state.
‘Chiquiar et al., (2005)’
Showed medium-skilled Mexicans have the highest rate of movement. While low skilled immigrants gain the most from migrating to the US the costs prohibit them from doing so
‘McKenzie et al., (2010)’
Builds on the work of ‘Chiquiar et al., (2005)’ by adding the size of the migrant network in the host nation, found increasing the migrant network size increased the payoff so the two tails of people who didn’t migrate spread apart so more people decide to migrate
‘Biene et al., (2011)’
looked at the role of diasporas of Turkish immigrants into Spain, Germany and Luxembourg. Found the nations with the largest migrant networks attracted a greater share of low skilled workers while nations with few Turkish immigrants saw the greatest share of high skilled workers (Germany 1.2m Turkish migrants only 6% of new immigrants were high skilled, Luxembourg only 194 migrants which attracted 44% one new immigrants were high skilled)
‘Massimilano, (2014)’
Shows points systems attract the best immigrant into a country to improve the economic position of it (quasi-marketing device). Points system looks at the short-term labour requirements of the host nation. Low income inequality and points system are complementary as both screen in favour of higher observed and unobserved skills
