E-Book, Englisch, 890 Seiten
The Impact
E-Book, Englisch, 890 Seiten
ISBN: 978-0-444-53769-0
Verlag: Elsevier Reference Monographs
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)
Covers a range of topics from labor market outcomes and fiscal consequences to the effects of international migration on the level and distribution of income - and everything in between.Encompasses a wide range of topics related to migration and is multidisciplinary in some aspects, which is crucial on the topic of migrationAppeals to a large community of scholars interested in this topic and for whom no overviews or summaries exist
Autoren/Hrsg.
Weitere Infos & Material
1;Front Cover;1
2;Volume 1B The Impact and Regional
Studies;4
3;Introduction to the series;3
4;Copyright;5
5;Contents;6
6;Dedication;8
7;Reviewers;10
8;Preface;12
9;Introduction;14
10;In memoriam: Paul W. Miller (1955-2013);18
11;Part IV: The Impact of Immigration;22
11.1;Chapter 15: Immigration and the Distribution of Incomes;24
11.1.1;1. Introduction;24
11.1.2;2. The Impact of Immigration on the Distribution of Income: Conceptual Issues;26
11.1.3;3. Evidence on the Compositional Effects of Immigration on Income Distribution;29
11.1.4;4. The Impact of Immigration on the Native Income Distribution: Theory;36
11.1.5;5. Empirical Issues in Estimating the Impact of Immigration on the Income Distribution;42
11.1.6;6. Evidence on the Impact of Immigration on Relative Wages;45
11.1.6.1;6.1. Aggregate production function approaches;45
11.1.6.2;6.2. Cross-area, occupation, or industry approaches;54
11.1.6.3;6.3. Episodes of immigration shocks;58
11.1.6.4;6.4. An evaluation of the evidence on the impact of immigration on relative wages;60
11.1.6.5;6.5. Evidence on adjustments in output mix and induced technological change;63
11.1.7;7. Additional Evidence on Foreign Migration: Emigration;65
11.1.8;8. Beyond Wage Effects: Immigration, Child Care, Native Women's Labor Supply, and the Family Income Distribution;66
11.1.9;9. Immigration and the World Income Distribution;68
11.1.10;10. Summary and Conclusions;69
11.1.11;Acknowledgments;71
11.1.12;References;71
11.2;Chapter 16: The Fiscal Impact of Immigrants: Taxes and Benefits;76
11.2.1;1. Introduction;77
11.2.2;2. The Political Setting;78
11.2.3;3. Estimating the Fiscal Impact of Immigration;79
11.2.3.1;3.1. Who counts as an immigrant?;79
11.2.3.2;3.2. The fiscal impact of today, tomorrow, or forever?;81
11.2.3.3;3.3. Fiscal environment;85
11.2.3.4;3.4. Which public consumption expenditures?;86
11.2.4;4. What Determines the Fiscal Impact of Immigration?;87
11.2.4.1;4.1. Immigrant characteristics;87
11.2.4.2;4.2. Host country characteristics;89
11.2.5;5. The Existing Literature on the Fiscal Impact of Immigration;90
11.2.5.1;5.1. The static evidence for the US;90
11.2.5.1.1;5.1.1. National-level estimates based on the total immigrant population;90
11.2.5.1.2;5.1.2. Estimates for the undocumented immigrant population;91
11.2.5.1.3;5.1.3. Low-skilled immigrants;92
11.2.5.1.4;5.1.4. Local level estimates;93
11.2.5.2;5.2. The static evidence for the UK;93
11.2.5.2.1;5.2.1. Estimates based on the total immigrant population;93
11.2.5.2.2;5.2.2. Central and Eastern Europeans;95
11.2.5.3;5.3. The static evidence for other European countries;96
11.2.5.4;5.4. Cross-country static evidence;97
11.2.5.5;5.5. The dynamic evidence for the US;98
11.2.5.6;5.6. The dynamic evidence for European countries;99
11.2.6;6. The Fiscal Impact of Emigration;100
11.2.7;7. What is Missing from the Current Analysis?;101
11.2.7.1;7.1. Broader general equilibrium effects;101
11.2.7.2;7.2. Fiscal impacts by immigration category;102
11.2.7.3;7.3. Middle-income countries;103
11.2.8;8. Summary;103
11.2.9;References;103
11.3;Chapter 17: Immigration and Entrepreneurship;108
11.3.1;1. Introduction;108
11.3.2;2. The Contribution of Immigrant Entrepreneurs to the Economy;111
11.3.3;3. Immigrant Business Ownership;115
11.3.3.1;3.1. Who are immigrant entrepreneurs in the United States?;115
11.3.3.2;3.2. Methodology for analyzing immigrant group differences in entrepreneurship;119
11.3.3.3;3.3. Explaining group differences-literature review;120
11.3.3.3.1;3.3.1. Human capital;120
11.3.3.3.2;3.3.2. Wealth and access to financial capital;121
11.3.3.3.3;3.3.3. Home country business experience;122
11.3.3.3.4;3.3.4. Ethnic enclaves;123
11.3.3.3.5;3.3.5. Legal status and undocumented immigrants;124
11.3.4;4. Immigrant Business Performance;125
11.3.4.1;4.1. Differences across immigrant groups;126
11.3.5;5. Crowd-Out, Spillovers, and Diversity;128
11.3.6;6. Conclusions and Areas for Future Research;131
11.3.7;Appendix A. Data Sources on Immigrant Entrepreneurship;132
11.3.7.1;The American Community Survey;132
11.3.7.2;The matched Current Population Survey;133
11.3.7.3;The 2007 Survey of Business Owners;133
11.3.7.4;The Survey of Income and Program Participation;134
11.3.8;Appendix B. Utility Model Representation of Self-Employment Decision;135
11.3.9;Appendix C. Decomposition Methodology;136
11.3.10;References;139
11.4;Chapter 18: Migration, International Trade, and Capital Formation: Cause or Effect?;144
11.4.1;1. Introduction;145
11.4.2;2. A Brief Tour Through History and Issues;153
11.4.2.1;2.1. Mass migration of the nineteenth century;154
11.4.2.2;2.2. Characteristics of modern migration;158
11.4.2.2.1;2.2.1. Migration patterns;158
11.4.2.2.2;2.2.2. Selection effects;159
11.4.2.2.3;2.2.3. Restrictive immigration policies;160
11.4.2.2.4;2.2.4. Migration and development;162
11.4.2.3;2.3. Modern migration, trade, and income distribution;163
11.4.2.3.1;2.3.1. Trade;163
11.4.2.3.2;2.3.2. Migration;165
11.4.2.4;2.4. Modern migration and international convergence;167
11.4.2.4.1;2.4.1. Capital;168
11.4.2.4.2;2.4.2. Trade;169
11.4.2.4.3;2.4.3. Convergence through modern migration?;170
11.4.3;3. A Factor Proportions View on Migration and Trade;172
11.4.3.1;3.1. A normative view on migration;173
11.4.3.1.1;3.1.1. A simple yet general model;173
11.4.3.1.2;3.1.2. Three welfare channels of migration;176
11.4.3.1.3;3.1.3. The immigration surplus;179
11.4.3.1.4;3.1.4. Distortions and policy;182
11.4.3.2;3.2. Technology;185
11.4.3.3;3.3. International convergence;187
11.4.3.3.1;3.3.1. Convex technology;187
11.4.3.3.2;3.3.2. Increasing returns: new economic geography;189
11.4.4;4. Migration and the Formation of Physical Capital;193
11.4.4.1;4.1. Neoclassical models with capital adjustment costs;193
11.4.4.1.1;4.1.1. Single-sector setup;194
11.4.4.1.2;4.1.2. Tradable and non-tradable Goods;196
11.4.4.2;4.2. Increasing returns and agglomeration effects;198
11.4.4.3;4.3. Empirical evidence;201
11.4.5;5. High-Skilled Migration and Productivity Growth;202
11.4.5.1;5.1. Knowledge capital formation;203
11.4.5.1.1;5.1.1. Product innovation;203
11.4.5.1.2;5.1.2. Vertical innovation;207
11.4.5.1.3;5.1.3. Multi-region models;208
11.4.5.1.4;5.1.4. Empirical evidence;209
11.4.5.2;5.2. High-skilled migration and human capital formation;210
11.4.5.2.1;5.2.1. A simple dynamic model;210
11.4.5.2.2;5.2.2. Empirical evidence;213
11.4.6;6. Migration in the Gravity Equation of Trade;213
11.4.6.1;6.1. Conceptual foundation of the gravity equation;214
11.4.6.1.1;6.1.1. The trade cost channel of migration;218
11.4.6.1.2;6.1.2. The preference channel of migration;220
11.4.6.1.3;6.1.3. Econometric issues;221
11.4.6.1.4;6.1.4. Aggregation;223
11.4.6.2;6.2. Empirical evidence: the effect of migration on trade;224
11.4.6.2.1;6.2.1. A quick browse over the existing body of research;224
11.4.6.2.2;6.2.2. Dealing with endogeneity concerns;227
11.4.6.2.2.1;6.2.2.1. Controlling for unobserved heterogeneity;228
11.4.6.2.2.2;6.2.2.2. Instrumental variables strategies;231
11.4.6.2.3;6.2.3. The role of product differentiation;232
11.4.6.2.3.1;6.2.3.1. Cross-country evidence;233
11.4.6.2.3.2;6.2.3.2. Region-level evidence;235
11.4.6.2.4;6.2.4. The roles of immigrant education and occupation;236
11.4.6.2.4.1;6.2.4.1. Immigrant education;236
11.4.6.2.4.2;6.2.4.2. Immigrant occupation;237
11.4.6.2.5;6.2.5. Extensive versus intensive margins;238
11.4.6.2.5.1;6.2.5.1. Evidence based on aggregate region-level trade flows;238
11.4.6.2.5.2;6.2.5.2. Evidence based on firm-level transactions;239
11.4.6.2.6;6.2.6. The role of trade partner characteristics;240
11.4.6.2.7;6.2.7. Indirect network effects;241
11.4.6.2.7.1;6.2.7.1. The Chinese network;241
11.4.6.2.7.2;6.2.7.2. Indirect network effects;242
11.4.7;7. Conclusion;244
11.4.8;Appendix. Solution of the Model in Section 5.1.2;248
11.4.9;References;249
11.5;Chapter 19: The Impact of International Migration on Economic Growth in the Global Economy;258
11.5.1;1. Introduction;258
11.5.2;2. Economic Growth and Population Growth across the World;264
11.5.3;3. Migration in Neoclassical Growth Models;274
11.5.4;4. Migration, Geography, and Endogenous Growth;283
11.5.5;5. The Impact of Migrant Heterogeneity on Growth;290
11.5.6;6. Migrant Entrepreneurship and Economic Growth;294
11.5.7;7. Economic Growth in Countries with Net Emigration;297
11.5.8;8. Conclusion;300
11.5.9;Acknowledgments;301
11.5.10;References;302
11.6;Chapter 20: Migration and Remittances;308
11.6.1;1. Introduction;308
11.6.1.1;1.1. Background;308
11.6.1.2;1.2. Aggregate remittance flows;310
11.6.1.3;1.3. Forms, transfer channels, and categories of recipients;315
11.6.1.4;1.4. Estimates of unrecorded remittances;317
11.6.1.5;1.5. Implications for survey design and data analysis;319
11.6.2;2. Determinants of Remittances;320
11.6.2.1;2.1. Methodological challenges;320
11.6.2.2;2.2. Modeling remittance motivations;326
11.6.2.2.1;2.2.1. Explaining remittances;326
11.6.2.2.2;2.2.2. Altruism vs. exchange;327
11.6.2.2.3;2.2.3. Asset accumulation and portfolio choice;330
11.6.2.2.4;2.2.4. Mixed-motive models;331
11.6.2.3;2.3. Community remittances and social pressures;333
11.6.3;3. Estimating Impacts of Remittances;334
11.6.3.1;3.1. Impacts on incomes, poverty, and inequality;334
11.6.3.1.1;3.1.1. Counterfactual income methods;339
11.6.3.1.2;3.1.2. Cross-sectional comparisons method;343
11.6.3.2;3.2. Impacts on household resource allocation;344
11.6.3.3;3.3. Impacts on household human capital: education and health;347
11.6.4;4. Remittances and Macro-Level Studies;351
11.6.4.1;4.1. Remittances and growth;351
11.6.4.2;4.2. Impacts on financial development;355
11.6.5;5. Policy Discussion;358
11.6.5.1;5.1. Promoting more migration and remittances;358
11.6.5.2;5.2. Promoting ``better´´ uses of remittances?;361
11.6.6;References;362
11.7;Chapter 21: Immigration: What About the Children and Grandchildren?;372
11.7.1;1. Introduction;373
11.7.2;2. Initial Conceptual and Measurement Issues;375
11.7.3;3. Basic Demographics;378
11.7.4;4. Theory and Institutions;382
11.7.4.1;4.1. Economic theory;383
11.7.4.1.1;4.1.1. Economic assimilation;383
11.7.4.1.2;4.1.2. Economic assimilation with cohort effects;384
11.7.4.1.3;4.1.3. Intergenerational mobility;385
11.7.4.2;4.2. Institutions affecting intergenerational integration;389
11.7.5;5. Education;392
11.7.5.1;5.1. Educational attainment;392
11.7.5.2;5.2. Educational performance;394
11.7.5.3;5.3. Age at immigration;397
11.7.5.4;5.4. Language, starting with age at immigration;398
11.7.5.5;5.5. Country of destination, mixed marriages, and related issues;402
11.7.5.6;5.6. Intergenerational mobility;404
11.7.5.7;5.7. Ethnic externalities;406
11.7.5.7.1;5.7.1. Intergenerational integration at the ethnic group level;406
11.7.5.7.2;5.7.2. Immigrants educational effects on other immigrants and natives;407
11.7.6;6. Labor Market Outcomes;409
11.7.6.1;6.1. Stylized facts regarding labor market outcomes;409
11.7.6.2;6.2. Studies addressing labor market outcomes;411
11.7.7;7. The Evolution of Cultural and Social Outcomes Across Generations;415
11.7.8;8. Conclusion and Thoughts on Future Research;417
11.7.9;Acknowledgments;419
11.7.10;References;420
12;Part V: Regional Studies;426
12.1;Chapter 22: The Labor Market Integration and Impacts of US Immigrants;428
12.1.1;1. Introduction;428
12.1.2;2. Immigration Policy and Immigrant Inflows;429
12.1.2.1;2.1. History of United States immigration policy;429
12.1.2.2;2.2. Current immigration policy;433
12.1.2.3;2.3. Unauthorized migrants;436
12.1.2.4;2.4. Immigrant inflows since 1965;437
12.1.3;3. Labor Market Integration of Immigrants;441
12.1.3.1;3.1. Employment;446
12.1.3.2;3.2. Earnings;451
12.1.3.3;3.3. Illegal immigration;458
12.1.4;4. The Second and Later Generations;459
12.1.4.1;4.1. Outcomes by immigrant generation;460
12.1.4.2;4.2. Intermarriage and selective ethnic attrition;471
12.1.5;5. Impacts on Native Workers;476
12.1.5.1;5.1. Spatial correlations;476
12.1.5.2;5.2. The importance of immigrant skill mix;477
12.1.5.3;5.3. Why the discrepancy between national and local estimates?;479
12.1.5.4;5.4. Are immigrant and native workers substitutes or complements?;480
12.1.5.5;5.5. Summary of immigration's impacts on native workers;481
12.1.6;6. Conclusion;482
12.1.7;Acknowledgments;484
12.1.8;References;484
12.2;Chapter 23: Regional Studies: Latin America and the Caribbean;492
12.2.1;1. Historical Overview of Migration to Latin America and the Caribbean;492
12.2.1.1;1.1. Colonial Latin America;493
12.2.1.2;1.2. Post-independence;496
12.2.1.3;1.3. Refugee migration before the modern period;497
12.2.2;2. Migration from the Mid-Twentieth Century Onwards;498
12.2.2.1;2.1. Intra-regional migration;499
12.2.2.2;2.2. South-north migration;504
12.2.2.2.1;2.2.1. Special cases;507
12.2.2.2.1.1;Origins and termination of the Bracero program;507
12.2.2.2.1.2;Three examples of south-north migration with distinct determinants;509
12.2.2.2.1.2.1;Puerto Rican migration to the United States;509
12.2.2.2.1.2.2;Dominican migration to the United States;510
12.2.2.2.1.2.3;Cuban migration to the United States;510
12.2.2.2.1.3;Latin American and Caribbean migration to Spain;512
12.2.2.2.2;2.2.2. Northern government attitudes toward immigration from the south;513
12.2.2.2.3;2.2.3. Latin American government attitudes toward emigration to the north;515
12.2.2.3;2.3. South-south migration;516
12.2.2.3.1;2.3.1. Special cases;518
12.2.2.3.1.1;Guatemala-Mexico;518
12.2.2.3.1.2;Haiti-Dominican Republic;518
12.2.2.3.1.3;Bolivia-Argentina;519
12.2.2.4;2.4. Assimilation;519
12.2.3;3. Economic Consequences of Migration in Latin America and the Caribbean;520
12.2.3.1;3.1. Brain drain;520
12.2.3.2;3.2. Remittances: the counterbalance of brain drain?;522
12.2.3.2.1;3.2.1. History of transfers;522
12.2.3.2.2;3.2.2. Methods of transfer;524
12.2.3.2.3;3.2.3. Economic impacts of remittances on migrants countries of origin;526
12.2.3.2.3.1;Microeconomic impacts;526
12.2.3.2.3.2;Macroeconomic impacts;527
12.2.4;4. Overview and Future Prospects;528
12.2.5;References;529
12.3;Chapter 24: Immigration in Europe: Trends, Policies, and Empirical Evidence;534
12.3.1;1. Introduction: Defining Features of Immigration in Europe;535
12.3.2;2. Historical Migration Trends;536
12.3.2.1;2.1. Migration into Europe;536
12.3.2.2;2.2. Migration within Europe;538
12.3.2.3;2.3. Country-specific trends;540
12.3.3;3. Policies Regulating Migration;546
12.3.3.1;3.1. Access to citizenship;546
12.3.3.2;3.2. Refugees and asylum seekers;549
12.3.3.3;3.3. Border enforcement and amnesties;549
12.3.3.4;3.4. Attracting highly skilled immigrants;551
12.3.4;4. Immigrants Outcomes;553
12.3.4.1;4.1. Estimating native-immigrant gaps;554
12.3.4.2;4.2. Labor market outcomes;556
12.3.4.2.1;4.2.1. Gaps in employment;556
12.3.4.2.2;4.2.2. Gaps in the quality of employment: occupations and earnings;559
12.3.4.2.2.1;Occupational gaps;559
12.3.4.2.2.2;Earnings gaps;559
12.3.4.2.3;4.2.3. Explanations;562
12.3.4.2.3.1;Language proficiency;562
12.3.4.2.3.2;The business cycle;563
12.3.4.2.3.3;Spatial segregation;564
12.3.4.2.3.4;Discrimination;565
12.3.4.3;4.3. Education outcomes;567
12.3.4.4;4.4. Other socio-economic outcomes;569
12.3.5;5. Economic Consequences of Immigration;571
12.3.5.1;5.1. Labor market effects;571
12.3.5.1.1;5.1.1. Wages and employment;572
12.3.5.1.1.1;Empirical methodologies;572
12.3.5.1.1.2;Cross-country evidence;575
12.3.5.1.1.3;Individual country evidence;576
12.3.5.1.2;5.1.2. Sectoral composition and endogenous technology adoption;579
12.3.5.1.3;5.1.3. Occupational and task specialization;580
12.3.5.1.4;5.1.4. Household services;581
12.3.5.2;5.2. Fiscal consequences;582
12.3.5.3;5.3. Macroeconomic outcomes;583
12.3.6;6. Conclusions;585
12.3.7;Acknowledgments;586
12.3.8;References;586
12.4;Chapter 25: Immigrants in Israel;594
12.4.1;1. Distinguishing Features of Migration to Israel;594
12.4.2;2. A Country of Immigrants-the Homeland of Jewish People;601
12.4.2.1;2.1. Jewish immigration to Palestine during the Ottoman Turkish Rule (1882-1918) and during the Mandatory period (1919-48);601
12.4.2.2;2.2. Jewish immigration to Israel in the early statehood years (May 1948-53);604
12.4.2.3;2.3. Other major Jewish immigration waves;607
12.4.2.3.1;2.3.1. Immigration from Morocco 1954-64;607
12.4.2.3.2;2.3.2. Immigration from the USSR during the 1970s;607
12.4.2.3.3;2.3.3. Immigration from Ethiopia during the 1980s and 1990s;607
12.4.2.3.4;2.3.4. Migration from the Former Soviet Union (FSU) in the 1990s;608
12.4.2.4;2.4. Emigration from Israel;609
12.4.3;3. The Economic Consequences of Jewish Migration;612
12.4.3.1;3.1. Macroeconomic consequences;612
12.4.3.1.1;3.1.1. The effect of immigration on economic growth;612
12.4.3.1.2;3.1.2. The impact of immigrants on natives wages and employment;617
12.4.3.1.3;3.1.3. The impact of immigrants on the housing market;618
12.4.3.2;3.2. Microeconomic consequences;620
12.4.4;4. Non-Jewish Migration to Israel-Temporary Work Migrants and Asylum Seekers;633
12.4.4.1;4.1. Foreign workers;634
12.4.4.2;4.2. Asylum seekers;642
12.4.4.3;4.3. Immigration policy towards foreign workers and asylum seekers;643
12.4.5;5. Future Prospects;645
12.4.5.1;5.1. Promoting immigration-Decreasing emigration;645
12.4.5.2;5.2. Encouraging the return of Israelis abroad;646
12.4.5.3;5.3. Direct absorption and the geographical distribution of immigrants;647
12.4.5.4;5.4. Migration management: beyond Jewish migration;647
12.4.6;References;648
13;Cameo 3: The Two-Step Australian Immigration Policy and its Impact on Immigrant Employment Outcomes*;652
13.1;Chapter 26: African Migration;676
13.1.1;1. Introduction;652
13.1.2;1. Introducing the Setting;678
13.1.2.1;1.1. The colonial heritage;681
13.1.2.2;1.2. Porous borders and the influence of geography;683
13.1.2.3;1.3. Economic growth and poverty;685
13.1.2.4;1.4. Demographic transition;687
13.1.2.5;1.5. Conflict and refugees;692
13.1.2.6;1.6. A challenging setting;694
13.1.3;2. The Migration Policy Framework;695
13.1.3.1;2.1. Immigration policies of the EU member countries: implications for Africans;695
13.1.3.1.1;2.1.1. Schengen visas, residence permits, and processing asylum seekers;695
13.1.3.1.2;2.1.2. Bilateral agreements with African states;699
13.1.3.1.3;2.1.3. Enforcement and outcomes;699
13.1.3.2;2.2. Entry of Africans to the US and Canada;702
13.1.3.3;2.3. GCC contracting of Africans;703
13.1.3.4;2.4. Movements in Africa;704
13.1.3.4.1;2.4.1. Exit restrictions and expulsions;704
13.1.3.4.2;2.4.2. Immigration controls;705
13.1.3.4.3;2.4.3. Regional mobility agreements;706
13.1.3.4.3.1;South African mine labor;708
13.1.3.4.4;2.4.4. Processing refugees;709
13.1.4;3. Determinants and Composition of Migration;711
13.1.4.1;3.1. Multivariate analyses of the magnitude of migration;711
13.1.4.1.1;3.1.1. Existing evidence;712
13.1.4.1.2;3.1.2. Fresh evidence;721
13.1.4.1.2.1;Estimates of augmented gravity models for African non-refugee migrants;721
13.1.4.1.2.2;Comparative estimates on African refugees;728
13.1.4.2;3.2. Characterizing African migrants;731
13.1.4.2.1;3.2.1. Gender;731
13.1.4.2.2;3.2.2. Education;733
13.1.4.2.2.1;Study abroad;735
13.1.4.2.2.2;Motives for Africa's brain drain: existing and new evidence;737
13.1.4.2.3;3.2.3. Labor force status, occupations, and field of study;740
13.1.5;4. Remittance Markets and Correlates;741
13.1.5.1;4.1. Magnitudes and mechanisms;742
13.1.5.2;4.2. Determinants: macro and micro correlates;745
13.1.5.2.1;4.2.1. Aggregate remittance inflows;745
13.1.5.2.2;4.2.2. Household survey data on remittances;747
13.1.5.2.2.1;Internal remittances;747
13.1.5.2.2.2;International remittances;749
13.1.5.3;4.3. Remittance inflows: a summing up;753
13.1.6;5. Economic and Social Consequences of the Migration-Remittance Nexus;754
13.1.6.1;5.1. Long-run growth in domestic production;754
13.1.6.1.1;5.1.1. Investment in fixed assets;755
13.1.6.1.1.1;Remittances and aggregate investment;755
13.1.6.1.1.2;Household investment responses;756
13.1.6.1.1.3;Enterprise start-ups: returned migrants savings;758
13.1.6.1.1.4;Harnessing remittances for investment?;759
13.1.6.1.2;5.1.2. Human capital and technology;760
13.1.6.1.2.1;Elements of brain drain and brain gain: the African evidence;761
13.1.6.1.2.1.1;Induced education at home;762
13.1.6.1.2.1.2;The bilateral migration-trade link;763
13.1.6.1.2.1.3;Returns to returning;764
13.1.6.1.2.1.4;Health and healthcare professionals;766
13.1.6.1.2.2;Towards a synthesis: policy issues;771
13.1.6.2;5.2. Short-run economic effects;775
13.1.6.2.1;5.2.1. Dutch disease and the real exchange rate;775
13.1.6.2.2;5.2.2. Labor market adjustments to emigration;776
13.1.6.2.3;5.2.3. Economic impact of refugee inflows;778
13.1.6.3;5.3. Inequality and poverty;780
13.1.6.4;5.4. Social effects;784
13.1.6.4.1;5.4.1. Fertility and the family;785
13.1.6.4.2;5.4.2. Political consequences and security issues;790
13.1.7;6. Towards Summing up: Lessons for Future Migration Prospects;794
13.1.8;Acknowledgments;801
13.1.9;Appendix A. Notes on data sources;801
13.1.9.1;Variable definitions and sources;803
13.1.10;Appendix B. Alternative approaches to estimating a gravity model for Africa;807
13.1.11;References;810
13.1.12;2. Background, Data, and Methodology;658
13.1.12.1;2.1. Old regime;659
13.1.12.2;2.2. New regime;659
13.1.13;3. Empirical Analysis;660
13.1.14;4. The Two-Step Policy and the Shifting Full- and Part-Time Employment Relationships;664
13.1.15;5. Concluding Remarks;670
13.1.16;References;673
13.2;Chapter 27: The Economics of Migration in the Gulf Cooperation Council Countries;828
13.2.1;1. Introduction;828
13.2.2;2. Migration to the GCC;829
13.2.2.1;2.1. Determinants of migration;829
13.2.2.1.1;2.1.1. Pull factors;829
13.2.2.1.2;2.1.2. Push factors;831
13.2.2.2;2.2. Type of migration;832
13.2.2.3;2.3. Migrants in the GCC;834
13.2.2.3.1;2.3.1. Overview;834
13.2.2.3.2;2.3.2. Data;835
13.2.2.3.2.1;KSA;837
13.2.2.3.2.2;UAE;841
13.2.2.3.2.3;Qatar;845
13.2.2.3.2.4;Kuwait;848
13.2.2.3.2.5;Oman;851
13.2.2.3.2.6;Bahrain;854
13.2.2.3.3;2.3.3. Discussion;855
13.2.2.3.4;2.3.4. Human capital earnings equation;856
13.2.3;3. Remittance Outflows;859
13.2.3.1;3.1. Size of remittances;859
13.2.3.2;3.2. Direction of remittances;862
13.2.3.3;3.3. Consequences of remittance outflows;864
13.2.4;4. Challenges and Opportunities;865
13.2.4.1;4.1. Labor markets;865
13.2.4.2;4.2. Regional and global;867
13.2.5;5. Conclusion;868
13.2.6;References;869
14;Index;872
15;BCC;890
Chapter 16 The Fiscal Impact of Immigrants
Taxes and Benefits
Carlos Vargas-Silva Senior Researcher, COMPAS, University of Oxford, 58 Banbury Road, Oxford OX2 6QS, UK Abstract
This chapter provides a comprehensive look at the different ways of estimating the fiscal impact of immigration, discusses the evidence for different countries, and proposes ideas for future research. The evidence regarding the direction of the fiscal impact of immigration (i.e., fiscal burden or blessing) is mixed, but most analysis suggests that the impact is a small share of the fiscal budgets of most host countries. In most cases the estimated impact is less than 1% of GDP. The majority of the analysis has been static (i.e., analysis for a single fiscal year), even though there is wide acceptance that a longitudinal perspective is necessary in order to assess the fiscal impact of immigration. The majority of the existing dynamic analyses provide a partial equilibrium perspective that fails to provide a comprehensive picture of this complex topic. There is also broad agreement that the composition of the immigrant population is more important than the level of immigration, but there is scarce research that focuses on the composition question. This includes a lack of research that distinguishes the impact of those who migrated after going through a selection process based on skills (e.g., work visas) and those who arrived through other channels (e.g., free movement, family reunification, asylum, etc.). Finally, a large share of the work in the area has been conducted by think-tanks and other policy focused groups. Most of these organizations have a set agenda in favor or against increased immigration. Unsurprisingly, those organizations with a favorable view of immigration tend to find that immigrants make a positive contribution to public finances, while those campaigning for reduced immigration tend to find the contrary. Keywords Fiscal Immigration Taxes Benefits Welfare JEL Classification E62 F22 1 Introduction
All existing (and likely all future) analysis of the fiscal impact of immigration has a common characteristic: implicit and explicit assumptions that are highly questionable. This fact does not imply that all previous analysis has been mediocre and biased, but just reflects the substantial complexity of the topic. In order to understand this complex topic it is necessary to take a comprehensive look at the variety of factors that determine the fiscal impact of immigrants and the assumptions that are necessary in order to estimate this impact. This chapter explains the different ways of estimating the fiscal impact of immigration, discusses the existing evidence for different countries, and proposes ideas for future research. A significant share (probably the majority) of the analysis on this topic has not been conducted by academics working for academic organizations. Instead, the analysis is often sponsored by government departments or policy-oriented organizations such as think-tanks and pressure groups. The interest of these latter groups in the fiscal impact of immigration is not surprising. As the latest economic turmoil in Europe suggests, a national government is often deemed “reliable” if it is fiscally responsible. Therefore, policies that benefit the fiscal position of the government have great importance for policymakers and the public in general. If an organization has an explicit or implicit agenda in favor or against immigration, then showing that immigrants have a favorable or negative impact on government finances becomes a convenient way of moving public opinion in a certain direction. The existing potential bias in much of this analysis calls for involvement of more academics in the discussion. However, for academic researchers, especially economists, the fiscal impact of immigration may not be as interesting as it comes across as just an “accounting” exercise. While this is in essence true, the questions that need answering in order to obtain better estimates of the fiscal impact of immigration are of potential interest to academic researchers. Highlighting these questions is a way of getting more academics involved in the discussion. This chapter also provides a short discussion of recent studies looking at the fiscal impact of emigration. There has been a great deal of discussion in the previous literature regarding the costs and benefits of emigration for the migrant-sending countries (e.g., brain drain, remittances, etc.), but only recently have studies started to put those costs and benefits explicitly in fiscal terms. Before discussing the technical aspects and existing studies, it is important to understand the political setting in which most analysis of the fiscal impact of immigration takes place. The next section discusses such political setting. Section 3 presents the different ways of analyzing the fiscal impact of immigration. Section 4 highlights the specific factors that affect the fiscal impact of immigration, while Section 5 provides a discussion of the existing literature. Section 6 presents a discussion of the fiscal impact of emigration. Section 7 provides a detailed discussion of key aspects that are missing from previous analysis, while Section 8 concludes. 2 The Political Setting
There is widespread opposition to immigration in most countries. In a Pew Research Center survey across 47 developed and developing countries, majorities of the public in 44 of the 47 countries surveyed agreed with the statement “We should restrict and control entry of people into our country more than we do now” (Pew Global Attitudes Project, 2007). In the 2011 Transatlantic Trends survey, 52% of Europeans and 53% of Americans stated that immigration was more a problem than an opportunity (Transatlantic Trends, 2011). Similar results have been obtained in most other studies comparing public attitudes towards immigration in different countries (e.g., OECD, 2010; Blinder et al., 2011). The opposition to immigration is unlikely to exclusively result from economic concerns. Factors related to protecting national identity, community cohesion, overcrowding and security, among others, are likely to play a big role in shaping opposition to immigration. However, it is difficult to quantify the impact of immigration in many of these factors. Therefore, much of the discussion has concentrated on measuring the economic impact of immigration and this has become one of the hottest political topics in many countries. Figure 16.1 presents information on individuals’ openness to immigration and perceptions of immigrants’ fiscal contributions from the European Social Survey as reported in OECD (2013). The data suggest that there is a strong association between the perceptions of immigrants’ fiscal contributions and opposition to immigration. In Figure 16.1, the y-axis shows the gap in preferences for openness to additional immigration from poorer countries outside of the European Union (1 to 4 scale) and views on the net fiscal position of migrants. Those who believe that immigrants represent a fiscal burden are less inclined to allow more immigration into the country. Figure 16.1 Gap in openness to more immigration between those who think that immigrants are fiscal contributors and those who think that immigrants represent a fiscal burden. Openness to immigration is on a 1 to 4 scale and refers to openness for additional immigration from poorer countries outside of the European Union. The gap is the difference in openness to more immigration between those who think that immigrants contribute more than they receive and those who think that immigrants receive more than they contribute. Source: Data from the European Social Survey for year 2008 and OECD (2013). The political relevance of this topic has motivated much analysis of the fiscal impact of immigrants. As mentioned above, much of the analysis has been conducted by pressure groups and think-tanks. This chapter could have been limited to discussing the purely “academic” literature about the fiscal impact of immigration. However, that would imply omitting an important share of the evidence. This chapter discusses academic studies and studies sponsored or directly conducted by non-academic organizations. The particular standpoint of the organizations is presented along with its findings. As discussed below in detail, and unsurprisingly, those organizations that opposed immigration tend to find that immigrants are a heavy burden for the state, while organizations that generally favor immigration find that immigrants are extremely valuable for government public finances. 3 Estimating the Fiscal Impact of Immigration
The government budget balance (Bt) in a given year t depends on the government revenues (Rt) and expenditures (Et) for that year: t=Rt-Et (16.1) If Bt > 0 there is a budget surplus for that year—i.e., the government collects more through taxation than it spends. If Bt < 0, there is a budget...
