The Elasticity of the Migrant Labour Supply: Evidence from Temporary Filipino Migrants
In: The journal of development studies: JDS, S. 1-13
ISSN: 0022-0388
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In: The journal of development studies: JDS, S. 1-13
ISSN: 0022-0388
The effect of immigration on host and origin countries is mediated by the way migrants take their labour supply decisions. We propose a simple way of integrating the traditional random utility maximisation model used to analyse location decisions with a classical labour demand function at destination. Our setup allows us to estimate a general upper bound on the elasticity of the migrant labour supply that we take to the data using the evolution of the numbers and wages of temporary overseas Filipino workers between 1992 and 2009 to different destinations. We find that the migrant labour supply elasticity can be very large. Temporary migrants are very reactive to economic conditions in their potential destinations. ; Simone Bertoli acknowledges the support received from the FERDI and the Agence Nationale de la Recherche of the French government through the programme 'Investissements d'avenir' (ANR-10-LABX-14-01); Jesús Fernández-Huertas Moraga received financial support from the Support from the Ministerio de Economía y Competitividad (Spain) (MDM 2014-0431), and Comunidad de Madrid, MadEco-CM (S2015/HUM-3444).
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The size of migration flows to Germany from other European countries surged in the aftermath of the 2010 European crisis, and this paper explores the main determinants of this large increase. International migrants tend to move more than once in their lives, and migration episodes to Germany make no exception in this respect. This paper explores some relevant implications of this simple observation for the estimation of gravity models, which is done here with bilateral monthly migration data. We demonstrate that ignoring the sequential nature of migration decisions gives rise to multilateral resistance to migration, thus substantially biasing the estimates. We also show that the expectations about future economic conditions at origin significantly influence bilateral migration flows to Germany. (C) 2016 Elsevier B.V. All rights reserved. ; Financial support from NORFACE research program on Migration in Europe — Social Economic, Cultural and Policy Dynamics is gratefully acknowledged; Simone Bertoli and Jesús Fernández-Huertas Moraga are also grateful for the prize they received from the Asociación Libre de Economía; Simone Bertoli acknowledges the support received from the FERDI and the Agence Nationale de la Recherche of the French government through the program "Investissements d'avenir"(ANR-10-LABX-14-01); Jesús Fernández-Huertas Moraga received financial support from the Ministerio de Economía y Competitividad (Spain), grant MDM 2014-0431, and Comunidad de Madrid, MadEco-CM (S2015/HUM-3444).
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The use of bilateral data for the analysis of international migration is at the same time a blessing and a curse. It is a blessing because the dyadic dimension of the data allows researchers to address a number of previously unanswered questions, but it is also a curse for the various analytical challenges it gives rise to. This paper presents the theoretical foundations of the estimation of gravity models of international migration, and the main difficulties that have to be tackled in the econometric analysis, such as the nature of migration data, how to account for multilateral resistance to migration or endogeneity. We also review some empirical evidence that has considered these issues. ; This paper benefited from the financial support of the FERDI (Fondation pour les Etudes et Recherches sur le D eveloppement International) and of the programme 'Investissements d'Avenir' (ANR 10 LABX 14 01) of the French government; Jes us Fern andez Huertas Moraga received financial support from the ECO2008 04785 and ECO2012 39412 projects funded by the Spanish Ministry for Economics and Competitiveness.
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In: Journal of development economics, Band 101, Heft 1, S. 75-91
ISSN: 0304-3878
In: IZA Discussion Paper No. 13018
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In: IZA Discussion Paper No. 10031
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In: IZA Discussion Paper No. 7170
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In: IZA Discussion Paper No. 4737
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In: IZA Discussion Paper No. 4957
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In: IZA Discussion Paper No. 13083
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Working paper
In: The World Economy, Band 39, Heft 4, S. 496-512
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In: Reports for the Fondazione Rodolfo DeBenedetti, S. 15-198
"Chapter 1 outlines the different approaches seecting highly skilled immigrants in the main destination countries of the OECD and identifies the major shifts in policies which have occurred over the last decade. It also discusses the approach of the EU in entering the contest for talent, particularly the recently adopted 'blue card' initiative. (...); Chapter 2 provides an overview of highly skilled migration into OECD countries. Using recently collected data on the number of immigrants with tertiary education in the OECD, we describe the main trends in the immigration of highly skilled individuals from the receiving-country perspective. Furthermore, the use of census data for selected OECD countries allows us to look at patterns of immigration at the very top of the skill distribution. We then analyse the development in the global pool of highly skilled individuals in the origin countries.(...); Building on this descriptive analysis, Chapter 3 examines the economic, legal, and institutional determinants of highly skilled migration in detail. Drawing on Ortega and Peri (2009) and Grogger and Hanson (2008), a scale equation and a selection equation are derived from a simple migration model. Using a panel data set which comprises 74 sending and 14 OECD destination countries over the 1980 to 2005 period, we explain the scale and the skill selectivity of immigration using a large set of variables which are derived from economic and political considerations. (...); Using the same data set, Chapter 4 addresses the impact of highly educated immigrants on employment, productivity, capital accumulation, and output in the receiving countries. Using an aggregate production function framework akin to growth accounting, we decompose the migration effects into a total immigration effect and the effect of the 'brain gain', which is measured as the share of tertiary educated individuals in the immigrant population. (...); The findings in Chapter 4 suggest that total immigration is beneficial for employment, capital accumulation, and total output, and that these gains increase with the share of highly skilled individuals in the Immigrant population. Nevertheless, most receiving countries restrict immigration and are reluctant to implement immigration policies that systematically select highly skilled immigrants. Chapter 5 focuses on this puzzle. (...); Chapter 6 adopts a more long-term view and addresses the possible implications of the contest for talents from a normative perspective. It explores-political economy forces against skilled migration not with standing what would happen if developed countries compete more actively for highly skilled labour in the future. (...); Finally, chapter 7 summarizes our main findings and draws some policy conclusions. " (Text excerpt, IAB-Doku) ((en))
In: Brain Drain and Brain Gain, S. 106-126