International Handbook on the Economics of Migration

Handbook of population and family economics, 1997

Regular Issue, 2019

The article is devoted to the consideration of socioeconomic aspects of international labor migration. It is established that international labor migration determines a number of positive effects in the economy of the host country. It is determined that in modern conditions, illegal international labor migration is becoming increasingly widespread. At the same time, illegal labor migrants fall into the shadow sector of the economy, increasing its share. This effect is negative and in the long-term perspective has destructive impact on any national economy of the recipient country of international labor migrants. It is proved that the negative impact of international labor migration on the economy of the recipient country is manifested in the fact that immigrants lay their claim to a certain share of public benefits that the state provides for its citizens. This effect is especially enhanced when families migrate with parents who will be paid a pension in the recipient country.

The topics of migration and economic globalization play a crucial role in the analysis and contextualization of the nexus between migration and development; they also extend to policymaking and its implications, and the many questions that arise when addressing all these issues: What impact does increasingly globalized market integration have on international migration? To what extent are labor markets themselves becoming internationalized? Under what conditions could trade and migration become complementary forces or even substitute one another? To what extent can neoclassical economic equilibrium models predict the consequences of factor mobility and trade for wage differentials? Why do societies that have opened up to world markets exhibit different degrees of growth or reduction of international migration? Can diasporas’ home country investments counter the effects of current export-led development strategies, which foster emigration because of their reliance on low-wage labor, and lead to economic activities that would retain native workers or even attract the return of emigrants? Might this process be different for skilled versus unskilled laborers?

Moving for Prosperity: Global Migration and Labor Markets, 2018

This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

Occasional Paper, Human Geography, 1996

In this paper I give an overview of how contemporary international labour migration can affect the country of origin. I do not intend to reach a grand conclusion concerning the ultimate effect of labour emigration on development. International labour migration is a complex phenomenon with a multitude of actors involved, occurring in a wide variety of contexts. A more satisfying approach, therefore, is to explore what effects are possible and who gains and profits under varying circumstances. Furthermore, international labour migration is likely to evoke changes which are difficult to assess normatively, but are nonetheless influential on society. I end by analyzing the recent shift towards more positive views on the consequences of migration for countries of origin and cautioning against the belief that an ultimate net effect can be estimated.

Brookings Trade Forum, 2006

Analytically as well as politically, migration is a more complex phenomenon than international trade. The latter involves two-way flows of goods and services that allow the real aggregate income to grow in each country involved. Therefore, the arguments for protection against imports typically rest on the detrimental effects on the income distribution or the existence of prior distortions in other markets. Migration involves one-way flows, which immediately requires us to distinguish between the "source" and "destination" countries. In addition, we must separately consider the welfare of the migrant himself and also decide whether his welfare forms a part of the source or destination country. In turn, since the migrant physically resides in the country of destination and cannot be excluded from consuming public goods, we are confronted with the issue of fiscal burden imposed by him on the native population. The literature on brain drain that experienced explosive growth in the 1970s and has been elegantly surveyed by Bhagwati and Rodriguez (1975) continues to provide a useful framework for analyzing many of the current issues in the migration debate. Therefore, my discussion below draws heavily on that literature. I begin with the introduction of the basic issues with the help of the conventional one-good, two-factor model. 1 The Simple Welfare Economics of Migration in a One-Good Model The one-sector, two-factor model offers us the simplest framework within which we can introduce the key issues migration raises. The model has the obvious limitation

Journal of International Economics, 2000

List of figures page xi List of tables xiii Foreword xv Acknowledgements xvi List of conference participants xvii 21 Trade and migration: an introduction 1 Riccardo Faini, Jaime de Melo and Klaus F. Zimmermann 1 Trade and migration: the main trends 2 2 The controversies 5 3 Insights from theory 8 4 Quantifying the link between trade and migration 5 Historical and contemporary evidence 6 Conclusions and policy implications PART ONE: INSIGHTS FROM THEORY 22 Trade liberalisation and factor mobility: an overview Anthony J. Venables 1 Introduction 2 Competitive models 3 Increasing returns and cumulative causation 4 Concluding comments Appendix Discussion André Sapir 23 Regional integration, trade and migration: are demand linkages relevant in Europe? Rodney D. Ludema and Ian Wooton 1 Introduction vii 2 The model 3 Labour supply 4 Equilibrium 5 Economic integration 6 Conclusions Discussion Giorgio Basevi 1 Introduction The first issue: stable and unstable equilibria 3 The second issue: different initial countries' sizes 4 Duality between trade and factor movements 5 Workers' preferences dependent on the outcome 24 Beyond international factor movements: cultural preferences, endogenous policies and the migration of people: an overview Arye L. Hillman and Avi Weiss 1 Policy asymmetries 2 Cultural preferences and immigration policy 3 Models of the migration of people 4 Endogenous immigration policy 5 Conclusions Discussion Francesco Daveri 25 Trade liberalisation and public-good provision: migrationpromoting or migration-deterring? Konstantine Gatsios, Panos Hatzipanayotou and Michael S. Michael 1 Introduction 2 The model 3 Import restriction and international migration 4 Import restrictions and public-good provision 5 Conclusions Appendix 1 Appendix 2 Discussion Ignazio Musu PART TWO: QUANTIFYING THE LINKS BETWEEN TRADE AND MIGRATION 26 Trade and migration: a production-theory approach Ulrich Kohli viii Contents 1 Introduction 2 The production-theory approach to modelling the demand for imports and foreign-labour services Comparative statics 4 Empirical implementation 5 Empirical results Total factor productivity Conclusions Discussion Marzio Galeotti 27 Migration, dual labour markets and social welfare in a small open economy Tobias Müller 1 Introduction 2 Social welfare effects of migration and protection 3 A model of dual labour markets and discrimination 4 Labour market effects of immigration and protection 5 Immigration, protection and social welfare: a simulation analysis 6 Conclusions Appendix 1 The simulation model 2 Data and calibration Discussion Rudolf Winter-Ebmer 28 Globalisation and migratory pressures from developing countries: a simulation analysis Riccardo Faini, Jean-Marie Grether and Jaime de Melo 1 Introduction 2 A Ricardo-Viner model of migration 3 Decomposing the effects of globalisation on the supply of migrants for two archetype economies 4 Simulation results 5 Sensitivity analysis 6 Conclusions Appendix 1 The simulation model 2 The data Discussion

2002

(Ed.). 1968. The Brain Drain. New York, Macmillan Company. The book, based on papers presented at a 1967 conference in Switzerland, is among the earliest published collection of articles by scholars discussing theoretical issues and political concerns about the brain drain phenomenon with respect to developing country concerns. The editor notes (in an interesting portent of 1990s "globalization" discussions) that "today as never before there is a 'common market' for brainpower which transcends national boundaries" and discusses various ways or models of explaining human capital flow and their implications for policy makers. Adams notes a few factors that tend to encourage attraction of a developed country and away from a developing country such as: salary differentials; professional opportunity; lack of receptivity to change in home country; relevance of foreign training; lack of realistic manpower policies; technology gap; political balkanization; discrimination on non-economic grounds; and monopolistic restrictions in advanced countries. The book introduces the problem and reviews it from historical, analytical and international perspectives. Various authors discuss different analytical frameworks for interpreting brain drain such as the internationalist or nationalist model as well as the national importance of human capital and push-pull approaches. Others discuss the role of study abroad in emigration and case studies including France, Greece, the European Common Market, Africa, and India as well as the Underdeveloped Countries from a "less alarmist view." The book explores an "agenda for action" to reverse factors that tend to encourage attraction to another country. Beine, Michel, Frederic Docquier, and Hillel Rapoport. 1999. "Brain Drain and Economic Growth: Theory and Evidence," Seminaire organize par l' Axe Ethique et developpement durable du Centre d'Economic et d'Ethique pour l'Environment et le Develeoppement, CADRE, University of Lillie 2, France. Develops and economic model that determines that at some point where emigration (of skilled workers0 possibilities lie in an intermediate range, it induces an incentive to pursue education in the source country. A "beneficial brain drain" (BBD) occurs when an economy is open to (uncertain) emigrations of skilled persons. Uses cross-sectional data to test the theory and finds some support (poorly documented empirical analysis), emigration positively affects human capital formation. In turn, human capital formation positively affects GNP growth, as does remittances. Carrington, William J. and Enrica Detragiache. 1998. "How Big is the Brain Drain?" International Monetary Fund Working Paper, WP/98/102, 25 pages. This is a key paper that develops one of the only sets of indicators of the extent of the brain drain. It uses US Census information on years of education to partition out the educational profile of developing-country migrants found in OECD countries; educated populations in source countries are derived from a companion paper by Barro and Lee. Emigration rates for 61 developing countries are applied to get the number of emigrants in 3 educational categories. There is a substantial range in estimates, with notable "brain drain" from the Caribbean, Central America, and some African and Asian countries. Chami, Ralph and Jeffrey H. Fisher. 2000. "Do Bequests Increase Labor Market Risk?" International Monetary Fund working paper. Private income transfers (remittances) to family members have typically been viewed as insuring the source country household against risk. However, in an equilibrium market one would expect aggregate transfers to affect the distribution of wages. As a result, remittances increase the volatility of wages (and "exceed the socially optimum level of transfers). Chau, Nancy H. and Oded Stark. 1998. "Human capital formation, asymmetric information, and the dynamics of international migration." Department of Economics Working Paper Series, No. 95, 34 pp. Chinese University of Hong Kong, Department of Economics: Hong Kong, China. "We consider the case in which the opening up of an economy to migration results in departure of skilled workers. We point out that while the possibility of migration changes the set of employment opportunities, it also affects the structure of incentives: higher returns to skills in the foreign country influence decisions about skill acquisition at home. We combine the changing opportunities-changing incentive structure idea with an assumption concerning the information environment: employers in the foreign country are neither perfectly informed nor equally informed over time about the skill levels of individual migrant workers as employers' experience of employing migrant workers accumulates."

Political Quarterly, 2003