rss_2.0IZA Journal of Development and Migration FeedSciendo RSS Feed for IZA Journal of Development and Migration Journal of Development and Migration 's Cover Imbalances and Labor Market Outcomes: Evidence from Large-Scale Mexican Migration<abstract> <title style='display:none'>Abstract</title> <p>We study the consequences of international migration on labor market outcomes in a developing country. Specifically, we look at the case of Mexico, where large-scale international migration has led to significant declines in the male/female ratio. We explore whether this results in Mexican women entering high-skilled and better paying jobs over time. This question is relevant since there has been an increase in women's education and labor force participation across the developing world, but less evidence of improvements in the gender wage gap. Using an instrumental variables strategy that relies on historical migration patterns, we find that when there are relatively fewer men, women are more likely to work, have high-skilled jobs, and some earn higher wages. These results are robust to the inclusion of state, age group, and year fixed effects, and to different measures of migration and data sources. We explore investments in human capital as a key mechanism. We find that the gains in schooling are concentrated among women with the same average level of education of the men who migrate. From an aggregate perspective, these improvements in job type and wages are important given that higher female income may benefit the status, education, and health of both women and children, which in turn increases a country's development and growth. Our findings are among the few that show some movement toward improvements in the gender wage gap in a developing country setting.</p> </abstract>ARTICLE2021-01-29T00:00:00.000+00:00Conflict and the composition of economic activity in Afghanistan<abstract> <title style='display:none'>Abstract</title> <p>Despite informality being the norm in conflict-affected countries, most estimates of the impact of conflict on economic activity rely on formal sector data. Using high-frequency data from Afghanistan, this paper assesses how surges in conflict intensity affect not only the formal sector, but also informal and illicit activities. Nighttime light provides a proxy for aggregate economic activity, mobile phone traffic by registered firms captures fluctuations in formal sector output, and the land surface devoted to poppy cultivation gives a measure of illicit production. The unit of observation is the district and the period of reference is 2012–2016. The results show that an increase in conflict-related casualties has a strong negative impact on formal economic activity in the following quarter and a positive effect on illicit activity after two quarters. The impact on aggregate economic activity is negative, but more muted.</p> </abstract>ARTICLE2021-09-07T00:00:00.000+00:00Working beyond the normal retirement age in urban China and urban Russia<abstract> <title style='display:none'>Abstract</title> <p>The incidence of working for earnings beyond the normal pension age of 55 for females and 60 for males in urban China and Russia is investigated using micro-data for 2002, 2013, and 2018. Estimated logit models indicate that, in both countries, the probability of working after normal retirement age is positively related to living with a spouse only, being healthy, and having a higher education level. It is negatively associated with age, the scale of pension, and, in urban China, being female.</p> <p>We find that seniors in urban Russia are more likely to work for earnings than their counterparts in China. Two possible reasons that are attributable to this difference are ruled out, namely cross-country differences in health status and the age distribution among elderly people. We also demonstrate that working beyond the normal retirement age has a much stronger negative association with earnings in urban China than in urban Russia. This is consistent with the facts that the normal retirement age is strictly enforced in urban China and seniors attempting to work face intensive competition from younger migrant workers. We conclude that China can learn from Russia that it has a substantial potential for increasing employment among healthy people under 70.</p> </abstract>ARTICLE2021-05-31T00:00:00.000+00:00Gender gaps in education: The long view<abstract> <title style='display:none'>Abstract</title> <p>Many countries remain far from achieving gender equality in the classroom. Using data from 126 countries, we characterize the evolution of gender gaps in low- and middle-income countries between 1960 and 2010. We document five facts. First, women are more educated today than 50 years ago in every country in the world. Second, they remain less educated than men in the vast majority of countries. Third, in many countries with low levels of education for both men and women in 1960, gender gaps widened as more boys went to school, then narrowed as girls enrolled; thus, gender gaps got worse before they got better. Fourth, gender gaps rarely persist in countries where boys attain high levels of education. Most countries with large, current gender gaps in educational attainment have low levels of male educational attainment, and many also perform poorly on other measures of development such as life expectancy and GDP per capita. Fifth, in the youngest cohorts, women have more education than men in some regions of the world. Although gender gaps in educational attainment are diminishing in most countries, the empirical evidence does not support the hypothesis that reducing the gender gap in schooling consistently leads to smaller gender gaps in labor force participation.</p> </abstract>ARTICLE2021-01-29T00:00:00.000+00:00Introducing the Jordan Labor Market Panel Survey 2016<abstract> <title style='display:none'>Abstract</title> <p>This paper introduces the 2016 wave of the Jordan Labor Market Panel Survey (JLMPS). It is an essential reference for users of this innovative and valuable dataset, which adds to the growing series of labor market panel surveys (LMPSs) produced by the Economic Research Forum (ERF). The 2016 wave is a follow-up on the initial 2010 wave. There has been substantial turmoil in the region since 2010, including the onset of the Syrian conflict and the influx of refugees into Jordan. The 2016 wave over-sampled areas with a high proportion of non-Jordanians to be able to represent and examine this important population. The paper describes this sampling strategy, attrition from 2010 to 2016, and weighting that corrects for attrition and accounts for the sampling strategy. We compare key demographic measures and labor market statistics with other sources of data on Jordan to demonstrate the sample's representativeness. The data provide an important opportunity for a detailed analysis of Jordan's changing labor market and society.</p> </abstract>ARTICLE2021-07-25T00:00:00.000+00:00Migrating out of mega-cities: Evidence from Brazil<abstract> <title style='display:none'>Abstract</title> <p>Traditional economic models predict rural to urban migration during the structural transformation of an economy. In middle-income countries, it is less clear which direction of migration to expect. In this article, the author shows that in Brazil as many people move out as into metropolitan cities and they mostly move to mid-sized towns. The author estimates the determinants of out-migrants’ destination choice accounting for differences in earnings, living costs, and amenities and tested whether the migrants gain economically by accepting lower wages but enjoying lower living costs. The findings suggest that in their destination choice, out-migrants aim to minimize costs of moving. On average, city-leavers realize higher real wages, including low-skilled migrants who would lose in nominal terms. The article thus provides new evidence on economic incentives to leave big cities in a middle-income country.</p> </abstract>ARTICLE2021-03-26T00:00:00.000+00:00Spaniards in the wider world: the role of education in the choice of destination country<abstract> <title style='display:none'>Abstract</title> <p>This paper examines the relationship between the education level of Spanish emigrants and their destination country. Since Spanish emigrants were born under the same laws and institutions, the differences in their destination countries can be due to dissimilarities in their level of education. To explore this, we use census microdata, covering the period from 2000 to 2007, of 21 countries with Spanish emigrants. Results suggest that with low unemployment rates, English- and Spanish-speaking countries are the most likely to become the host countries for more educated individuals, regardless of their location.</p> </abstract>ARTICLE2021-06-14T00:00:00.000+00:00Better together: Active and passive labor market policies in developed and developing economies<abstract> <title style='display:none'>Abstract</title> <p>We investigate the macroeconomic impact of public expenditure in active labor market policies (ALMPs) and passive labor market policies (PLMPs) on main employment indicators (i.e., unemployment, employment, and labor force participation) for a large and novel panel database of 121 countries (36 developed, 64 emerging and 21 developing economies). Compared to previous studies, we include for the first time evidence from developing and emerging economies and explicitly examine the possible presence of complementarities between active and passive policies. We find that the interaction between interventions is crucial, as the effect of spending in either of the two policies is more favorable the more is spent on the other. Even the detrimental labor market effects of passive policies disappear on the condition that sufficient amounts are spent on active interventions. This complementarity seems even more important for emerging and developing economies.</p> </abstract>ARTICLE2021-07-25T00:00:00.000+00:00Queuing to leave: A new approach to immigration<abstract> <title style='display:none'>Abstract</title> <p>This paper uses queuing theory to examine the linkages between legal and illegal immigration. This approach is particularly appropriate for periods of mass migration and can be used to look at how the <italic>magnitude</italic> of people trying to migrate affects the choice between legal and illegal channels. An empirical illustration shows how origin-country conflict and past migration differently affect current legal and illegal flows. With data for Schengen countries from Eurostat for documented immigration and the European Agency for the Management of Operational Cooperation at the External Borders of the Member States of the European Union (Frontex) for illegal border crossings (IBCs), I implement a generalized method of moments (GMM) strategy using different estimates of conflict-related deaths and lagged flows of immigration as external and internal instruments, respectively. Violent conflict has a positive and significant effect on IBCs but not on documented migration flows. I find evidence of positive spillovers from the legal channel of immigration into the illegal channel but not vice versa.</p> </abstract>ARTICLE2021-07-12T00:00:00.000+00:00Supply of immigrant entrepreneurs and native entrepreneurship<abstract> <title style='display:none'>Abstract</title> <p>Using nationally representative data from the United States, the author estimates the causal impact of immigrant entrepreneurship on entrepreneurial propensities of natives. The author draws data from the Annual Social and Economic Supplement of the Current Population Survey and uses within-state variation in supply of immigrant entrepreneurs for identification. To address concerns of endogeneity in the supply of immigrant entrepreneurs, the author takes advantage of a quasi-experiment provided by the State Children's Health Insurance Program. While the Ordinary Least Squares estimates indicate a positive effect, the Two Stage Least Squares estimates suggest that, on average, there is no significant effect of immigrant entrepreneurs on native entrepreneurship. Moreover, there is no net effect on subgroups of natives separated by skill level. There is also some evidence that immigrant entrepreneurs may “crowd-in” Blacks into certain types of self-employment. These results are in contrast to the significant negative impact suggested by the previous literature.</p> </abstract>ARTICLE2021-04-29T00:00:00.000+00:00Fragmenting the Family? The Complexity of Household Migration Strategies in Post-apartheid South Africa<abstract><title style='display:none'>Abstract</title><p>The disruption of family life is one of the important legacies of South Africa’s colonial and apartheid history. Families were undermined by deliberate strategies implemented through the pass laws, forced removals, urban housing policy, and the creation of homelands. Despite the removal of legal restrictions on permanent urban settlement and family co-residence for Africans, patterns of internal and oscillating labor migration have endured, dual or stretched households continue to link urban and rural nodes, children have remained less urbanized than adults, and many grow up without coresident parents. Although children are clearly affected by adult labor migration, they have tended to be ignored in the migration discourse. In this study, we add to the literature by showing how a child lens advances our understanding of the complexities of household arrangements and migration processes for families. In a mixed-methods study, we use nationally representative panel data to describe persistence, and also change, in migration patterns in South Africa when viewed from the perspective of children. We then draw on a detailed case study to explore what factors constrain or permit families to migrate together, or children to join adults at migration destination areas.</p></abstract>ARTICLE2019-08-14T00:00:00.000+00:00Diaspora Externalities<abstract><title style='display:none'>Abstract</title><p>This review article surveys the recent economic literature on diaspora networks, globalization, and development. Diasporas are shown to contribute to the economic and cultural integration of source (i.e., developing) countries into the global economy. I first review the effect of diaspora networks on core globalization outcomes such as trade, foreign investments, and the diffusion of knowledge and technology across borders. I then turn to the cultural and political sway of the diaspora, investigating the impact of emigration on the formation of political attitudes, fertility behavior, and other aspects of culture in the home country.</p></abstract>ARTICLE2019-08-27T00:00:00.000+00:00Labor Migration in Indonesia and the Health of Children Left Behind<abstract><title style='display:none'>Abstract</title><p>Economic research on labor migration in the developing world has traditionally focused on the role played by the remittances of overseas migrant labor in the sending country’s economy. Recently, due in no small part to the availability of rich microdata, more attention has been paid to the effects of migration on the lives of family members left behind. This paper examines how the temporary migration of parents for work affects the health outcomes of children left behind using the longitudinal data obtained from the Indonesia Family Life Survey. The anthropometric measure of the child health used, height-for-age, serves as a proxy for stunting. The evidence suggests that whether parental migration is beneficial or deleterious to the child health depends on which parent moved. In particular, migration of the mother has an adverse effect on the child’s height-for-age, reducing height-for-age Z-score by 0.5 standard deviations. This effect is not seen on the migration of the father.</p></abstract>ARTICLE2019-09-08T00:00:00.000+00:00Migration, Cultural Identity and Diasporas An Identity Economics Approach<abstract><title style='display:none'>Abstract</title><p>Besides effects on economic well-being, migration of people with distant cultural backgrounds may also have large effects on people’s cultural identity. In this paper, the identity economics of <xref ref-type="bibr" rid="j_izajodm-2019-0001_ref_003_w2aab3b7b1b1b6b1ab1b8b3Aa">Akerlof and Kranton (2000)</xref> is applied to migration. Accordingly, it is assumed that the utility of both the immigrants and the native population encompasses economic well-being and cultural identity. The migration effect on cultural identity depends, among others, on the distance between cultures. In a simple immigration game it is shown that immigrants may prefer to live rather in diaspora communities than to integrate into the host countries’ culture. This subgame-perfect equilibrium choice of immigrants seems the more likely the greater the cultural distance between their country of origin and the destination country is. Among the available policy instruments, restrictions on the freedom of movement and settlement of immigrants may be the most effective way to prevent the setup of large diaspora communities. For young immigrants and later generations of immigrants, integration via compulsory schooling is the most important policy. In general, cultural, religious and social institutions may support integration.</p></abstract>ARTICLE2019-06-29T00:00:00.000+00:00Substitution between Immigrant and Native Farmworkers in the United States: Does Legal Status Matter?<abstract><title style='display:none'>Abstract</title><p>The policy debate surrounding the employment of immigrant workers in U.S. agriculture centers around the extent to which immigrant farmworkers adversely affect the economic opportunities of native farmworkers. To help answer this question, we propose a three-layer nested constant elasticity of substitution (CES) framework to investigate the substitutability among heterogeneous farmworker groups based on age, skill, and legal status utilizing National Agricultural Workers Survey (NAWS) data from 1989 through 2012. We use farmwork experience and type of task performed as alternative proxies for skill to disentangle the substitution effect between U.S. citizens, authorized immigrants, and unauthorized immigrant farmworkers. Results show that substitutability between the three legal status groups is small; neither authorized nor unauthorized immigrant farmworkers have a significant impact on the employment of native farmworkers.</p></abstract>ARTICLE2019-07-27T00:00:00.000+00:00Asymmetric Information and the Discount on Foreign-Acquired Degrees in Canada<abstract><title style='display:none'>Abstract</title><p>A growing wage gap between immigrant and native-born workers is well documented and is a fundamental policy issue in Canada. It is quite possible that wage differences, commonly attributed to the lower quality of foreign credentials or the deficiency in the accreditation of these credentials, merely reflect lower wage offers that immigrant workers receive due to risk aversion among local firms facing an elevated degree of asymmetric information. Using the 2006 and 2011 population censuses, this paper empirically investigates the effects of wage bargaining in labor markets on the wage gap between foreign- and Canadian-educated workers. Our results imply that a significant part of the wage gap between foreign-educated and Canadian-educated immigrant (and native-born) workers is not driven by the employers’ risk aversion but by differences in human capital endowments and occupational matching quality.</p></abstract>ARTICLE2019-07-27T00:00:00.000+00:00Double Jeopardy: How Refugees Fare in One European Labor Market<abstract><title style='display:none'>Abstract</title><p>This paper examines the labor market trajectories of refugees who arrived in Belgium between 1999 and 2009. Belgium offers a relatively easy formal labor market access to refugees and other types of migrants but they face many other barriers in this strongly regulated and institutionalized labor market. Based on a longitudinal dataset that links respondents’ information from the Belgian Labor Force Survey with comprehensive social security data on their work histories, we estimate discrete-time hazard models to analyze refugees’ entry into and exit out of the first employment spell, contrasting their outcomes with family and labor migrants of the same arrival cohort. The analysis shows that refugees take significantly longer to enter their first employment spell as compared with other migrant groups. They also run a greater risk of exiting out of their first employment spell (back) into social assistance and into unemployment. The low employment rates of refugees are thus not only due to a slow integration process upon arrival, but also reflect a disproportional risk of exiting the labor market after a period in work. Our findings indicate that helping refugees into a first job is not sufficient to ensure labor market participation in the long run, because these jobs may be short-lived. Instead, our results provide clear arguments in favor of policies that support sustainable labor market integration.</p></abstract>ARTICLE2019-11-16T00:00:00.000+00:00The Marginal Benefit of an Active Labor Market Program Relative to a Public Works Program: Evidence from Papua New Guinea<abstract><title style='display:none'>Abstract</title><p>Policymakers typically try to address youth unemployment in developing countries through either active labor market programs (ALMPs) or labor-intensive public works programs (LIPWs). We examine whether there is any additional benefit for unemployed youth from participating in a comprehensive ALMP compared to a LIPW. We exploit an unanticipated intervention in the largest employment program in Papua New Guinea, which resulted in one intake of the program completing a LIPW and missing out on a comprehensive ALMP. We conduct a difference-in-difference analysis between participants in the intake that missed out on the ALMP component of the program and participants in the intakes immediately before and after. In contrast to most impact evaluations of ALMPs, we show youth that completed the comprehensive ALMP were around twice as likely to be employed in the formal sector 9–12 months after the program compared to similar youth in the intake that only completed a LIWP. This effect was entirely driven by 20% of youth who participated in the ALMP staying with the employer they were placed with following the end of the program. Surveys of these employers illustrate that they use the ALMP as a low-cost, low-risk, and relatively low-effort way of hiring new employees.</p></abstract>ARTICLE2019-10-05T00:00:00.000+00:00The Role of Social Capital in Shaping Europeans’ Immigration Sentiments<p>Migration has manifested itself to historic highs, creating divisive views among politicians, policy makers, and individuals. The present paper studies the Europeans’ attitudes toward immigration, focusing particularly on the role of social capital. Based on 267,282 respondents from 22 countries and over the period 2002–2014, we find that despite the eventful past years, Europeans, on average, are positive toward immigrants with the North European countries to be the least xenophobic. A salient finding of our analysis is that regardless of the impact of other contextual factors, namely, a country’s macroeconomic conditions, ethnic diversity, cultural origin, and individuals’ attributes, social capital associates with positive attitudes toward all immigrants, independent of their background. Furthermore, social capital moderates the negative effects of perceived threat on people’s opinions about immigrants.</p>ARTICLE2020-03-10T00:00:00.000+00:00What Drives Youth’s Intention to Migrate Abroad? Evidence from International Survey Data<p>Despite the bulk of international migrants being youth, little is known about the factors driving young people’s migration behavior at the global level. Using the individual-level survey data from Gallup World Poll across 139 countries over the period 2010–2016, this study contributes to the literature by exploring a wide range of factors potentially shaping young people’s (aged 15–34) desire, and a more concrete plan, to migrate abroad permanently. Results show that factors, such as holding post-secondary education, being unemployed, and working part-time involuntary, are increasing the desire of youth to migrate abroad as well as the probability that they turn this aspiration into a more concrete plan over the following year. Similarly, having negative expectations about the economic outlook, the number of available job opportunities, and the prospects for upward career mobility are found to increase the propensity to migrate abroad, both among unemployed and employed youth. Results also show that material deprivation may represent a significant push factor behind youth migration, although budgetary constraints may prevent youth from transforming their migration desires into actual plans in low-income countries. Moreover, findings suggest that contextual factors, such as discontent with local amenities and national governments, increase the desire of youth to migrate abroad, but they have little or no influence on the probability that these dreams are turned into more concrete plans. Finally, this study shows that while youth’s and adults’ migration propensities are often driven by the same motives, the influence of education and labor market-related factors on migration intentions is considerably stronger among youth than adults.</p>ARTICLE2020-07-16T00:00:00.000+00:00en-us-1