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The end of free movement and the introduction of the post-Brexit migration system represent the most important changes to the UK migration system in half a century. Coinciding with the aftereffects of the pandemic, the result has been very large changes both to the numbers of those coming for work and study, and to their composition, both in terms of countries of origin and in the sectors and occupations of new migrants. It has also resulted in a political backlash, resulting in significant further changes to the system announced in December 2023. I discuss the evidence to date of the impact of recent migration trends on the UK economy and labour market, distinguishing between different sectors.
We study the effect of an immigration ban on the self-selection of immigrants along cultural traits, and the transmission of these traits to the second generation. We show theoretically that restricting immigration incentivizes to settle abroad individuals with higher attachment to their origin culture, who, under free mobility, would rather choose circular migration. Once abroad, these individuals tend to convey their cultural traits to their children. As a consequence, restrictive immigration policies can foster the diffusion of cultural traits across boundaries and generations. We focus on religiosity, which is one of the most persistent and distinctive cultural traits, and exploit the 1973 immigration ban in West Germany (Anwerbestopp) as a natural experiment. Through a diff-in-diff analysis, we find that second generations born to parents treated by the Anwerbestopp show higher religiosity.
The international migration literature has highlighted four key stylized facts from the perspective of the source country: (i) Migration rates are notably high, with some nations seeing over ten percent of their population living abroad. (ii) Certain developing countries have witnessed a significant exodus of skilled workers, commonly referred to as brain drain, spanning several decades. (iii) Migrants often maintain strong ties to their country of origin, evidenced by the substantial remittances they send back to their relatives. (iv) Migration is not necessarily permanent, as a considerable number of individuals return to their home country after a period spent abroad. In this paper, we present a theoretical model that endogenously explains these facts. Our model allows us to explore key issues in migration literature from a theoretical standpoint. We analyze the general equilibrium effects of migration, its long-term implications, and its welfare consequences. Additionally, we investigate whether the combined impact of return migration and remittances can counterbalance the effects of skilled migration. Finally, we evaluate the efficacy of policy interventions designed to mitigate the adverse effects of brain drain.
This paper introduces a new set of comprehensive and cross-country-comparable indexes of migration policy selectivity. Crucially, these reflect the multidimensional nature of the differential treatment of migrants. We use these indexes to study the evolution of migration policy selectivity and estimate how they affect migration flows. Combining all publicly available and relevant data since WWII, we build three composite indexes that identify selectivity in terms of skills, economic resources and nationality. First, we use these to characterize migration policies in 42 countries between 1990 and 2014. Second, we examine the relationship between the selectivity of migration policy and migration flows. Each of the three dimensions of migration policy is found to correlate strongly and significantly with both the size and structure of migration flows.
This study examines disparities in health and nutrition among native and Syrian refugee children in Turkey. To understand the need for targeted programs addressing child well-being among the refugee population, we analyze the Turkey Demographic and Health Survey (TDHS) – which provides representative data for a large refugee and native population. We find no evidence of a difference in infant or child mortality between refugee children born in Turkey and native children. However, refugee infants born in Turkey have lower birthweight and age-adjusted weight and height than native infants. When we account for a rich set of birth and socioeconomic characteristics that display substantial differences between natives and refugees, the gaps in birthweight and age-adjusted height persist, but the gap in age-adjusted weight disappears. Moreover, the remaining gaps in birthweight and anthropometric outcomes are limited to the lower end of the distribution. The observed gaps are even larger for refugee infants born before migrating to Turkey, suggesting that the remaining deficits reflect conditions in the source country before migration rather than deficits in access to health services within Turkey. Finally, comparing children by the country of their first trimester, we find evidence of the detrimental effects of stress exposure during pregnancy.
We use novel survey data to assess the impact of the COVID-19 pandemic on internally displaced persons (IDPs) in Libya. Our analysis compares the effects of the pandemic for displaced and non-displaced citizens, controlling for individual and household characteristics and geo-localized measures of economic activity and conflict intensity. In our sample, 9.5% of respondents report that a household member has been infected by COVID-19, while 24.7% of them have suffered economic damages and 14.6% have experienced negative health effects due to the pandemic. IDPs do not display higher incidence of COVID-19 relative to comparable non-displaced individuals, but are about 60% more likely to report negative economic and health impacts caused by the pandemic. We provide suggestive evidence that the larger damages suffered by IDPs can be explained by their weaker economic status—which leads to more food insecurity and indebtedness—and by the discrimination they face in accessing health care.
International migration represents a potential channel for the transmission of norms, attitudes, and values back to the home countries. In this paper, we explore how international migration affects tax morale and aversion to the free-riding of members of the household left behind in the home country. We use a rich longitudinal household-level database on Polish society (period 2007–2015) that allows us to observe social attitudes and values of individuals before and after the actual migration of a member of the household. We find that having a migrant in the household has a significant and positive effect on tax morale and increases aversion toward free-riding of stayers. We also find that migrants have a lower level of tax morale before departure compared to stayers, suggesting that international migration leads to an overall gain in pro-social behaviors.
Greater labor migration can establish more channels for information flows, directly contributing to faster economic growth and improved innovation and work. It can also expand international remittances, which can be invested by recipient households in home countries in education, entrepreneurship, and improved and sustainable agricultural technologies. At the same time, however, increased emigration of medical professionals and technical workers from poor countries can reduce quality of local services, innovation, health status, and productivity. This analysis attempts to quantify the economic benefits and costs of permitting an immediate 10% increase in the bilateral migration of skilled workers (physicians, engineers or science, engineering, technology, and mathematics workers, and other persons with advanced educations) among the nations of the African Continental Free Trade Area and, more broadly, among 25 global regions. Economic benefits include higher migrant incomes abroad, welfare gains in destination countries associated with higher economic efficiency, spillover productivity gains, and an improved ability of the younger and more skilled working force to support the needs of the wider population, resulting in higher national production. Benefits in source countries include productivity enhancements from two sources: (a) greater access to knowledge associated with more bilateral trade and investment and (b) the ability of local households to invest remittances in productivity-enhancing activities. Welfare losses in source nations include static efficiency reductions and a worsened demographic support capability. In Africa, the benefit-cost ratios range from 3.7 to 6.9; in the global analysis, 17 to 38.
Although the positive socio-economic effects of remittances for recipient countries in the short term are unmistakable, inflows of remittances may at the same time exert adverse effects on the trade competitiveness of an economy, by appreciating the real exchange rate. This phenomenon is characterised as an instance of the ‘Dutch disease’ – the negative impact of windfall revenue inflows on the competitiveness of other tradable sectors and hence on overall economic growth. While the real effect of workers’ remittances on real exchange rates in a recipient economy is still a controversial issue, several studies have analysed evidence for the existence of the ‘Dutch disease’ phenomenon in various sets of countries. The main objective of this study is to examine whether remittance flows have had any adverse effect on the international trade competitiveness of a selected group of developing countries during the period from 1995 to 2014. Using a one-step system Generalised Method of Moments specification within a simultaneous equation approach, it shows that remittance flows depreciate the real exchange rate at their levels and that the lagged value of remittances create the Dutch disease for this country group. In addition, we confirm that while trade openness and world real interest rates contribute to a depreciation in real exchange rates, gross domestic product per capita and net Official Development Aid inflows tend to appreciate real exchange rates. A policy implication is that trade liberalisation policies that lower tariff rates on capital imports and new export-oriented incentive programmes should be accompanied by measures designed to prevent appreciation in the real exchange rate: steps in this direction such as recent macroeconomic and prudential capital flow management initiatives are briefly referenced.
This paper combines population and climate data to estimate the volume of migration induced by the drought events that have hit Mali since the late 1980s. The results show that droughts have had the effect of decreasing net migration rates in the affected localities. This is true for both men and women, regardless of their age. The effect of drought episodes, however, is found to differ according to localities and households’ capacity to adapt to climatic constraints: it fades in localities characterized by more diversified crops and in areas that receive more rainfall on average. Climate shocks also had an impact on international mobility: over the 2004–2009 period, around 2300 additional departures per year can be attributed to the droughts that hit Mali during the 2000s. We forecast that, under different climate scenarios and population growth projections, mobility induced by drought events will substantially grow in the next decades.
During the first wave of globalization, Argentina was among the most internationally integrated economies, experiencing a rising trend in trade openness and a tremendous increase in labor due to migration. In this paper, we empirically show the central role immigration had in boosting exports and imports in the years 1870–1913 by considering Argentine bilateral trade and migration from eight European countries (Austro-Hungarian Empire, Belgium, France, Germany, Italy, Spain, Switzerland, and United Kingdom). We use a migration-augmented gravity model to estimate the contribution of the massive inflows of Europeans, and we find that the main pro-trade effect was on imports: a percent 10% increase in migrants from a particular country would increase imports by up to 8% from that same country. We do not find the same effect on exports. The disproportionate decrease in transportation rather than communication costs may explain why the latter are relatively more decisive for exports than for imports. To overcome the problem of reverse causality and endogeneity, we use migration flows to the US from the eight European countries as an instrumental variable. In so doing, we aim at capturing the same push (but not Argentine pull) factors inducing European out-migration.
This paper studies the impact of immigration on the US macroeconomy. I identify structural vector autoregressions (SVARs) with time-varying parameters (TVPs) and stochastic volatility (SV) using a novel set of restrictions. The TVP-SV-SVARs are estimated on a quarterly sample including average labor productivity (ALP), hours worked, immigration, consumption, and term spread from 1953 to 2017. An immigration supply shock increases domestic ALP and hours worked over the business cycle horizons. Movements in immigration are explained by its own shock and to a lesser extent by the productivity and news shocks. IRFs driven by these shocks vary over the sample, especially around changes in immigration policy such as the Immigration Act of 1990. In contrast, the forecast error variance decompositions exhibit little change over the sample. Immigration plays an important role in the US macroeconomy.
The availability of child-care services has often been advocated as one of the instruments to counter the fertility decline observed in many high-income countries. In the recent past, large inflows of low-skilled migrants have substantially increased the supply of child-care services. In this paper, we examine if immigration has actually affected fertility exploiting the natural experiment occurred in Italy in 2007, when a large inflow of migrants—many of them specialized in the supply of child care—arrived unexpectedly. With a difference-in-differences method, we show that immigrant female workers have increased native births by a number that ranges roughly from 2% to 4%. We validate our result by the implementation of an instrumental variable approach and several robustness tests, all concluding that the increase in the supply of child-care services by immigrant women has positively affected native fertility.
In this paper, we investigate the long-term effects of climate change on the mobility of working-age people. We use a world economy model that covers almost all the countries around the world, and distinguishes between rural and urban regions as well as between flooded and unflooded areas. The model is calibrated to match international and internal mobility data by education level for the last 30 years, and is then simulated under climate change variants. We endogenize the size, dyadic, and skill structure of climate migration. When considering moderate climate scenarios, we predict mobility responses in the range of 70–108 million workers over the course of the twenty-first century. Most of these movements are local or inter-regional. South–South international migration responses are smaller, while the South–North migration response is of the “brain drain” type and induces a permanent increase in the number of foreigners in OECD countries in the range of 6–9% only. Changes in the sea level mainly translate into forced local movements. By contrast, inter-regional and international movements are sensitive to temperature-related changes in productivity. Lastly, we show that relaxing international migration restrictions may exacerbate the poverty effect of climate change at origin if policymakers are unable to select/screen individuals in extreme poverty.
In light of increasing environmental stress and its likely implications for migration patterns, we conduct a cross-country individual-level analysis of the impact of self-reported exposure to environmental stress on people's migration intentions and their destination choice. We simultaneously model intentions to migrate domestically and internationally for 90 countries worldwide in 2010. We find that self-reported exposure to environmental stress increases the probability to intend to migrate both domestically and internationally in the coming year. In absolute terms, the largest impact is obtained for domestic migration, but controlling for the fact that this is the most common form of migration anyway, environmental stress particularly raises intraregional migration intentions. Overall, the effects on migration intentions to the different destinations are strongest in low- and middle-income countries in Africa and Latin America and the Caribbean, while in high-income countries, and in Europe particularly, environmental stress appears to spur only domestic migration intentions.
Recent surveys of the literature on climate change and migration emphasize the important diversity of outcomes and approaches of the empirical studies. In this paper, we conduct a meta-analysis in order to investigate the role of the methodological choices of these empirical studies in finding some particular results concerning the role of climatic factors as drivers of human mobility. We code 51 papers representative of the literature in terms of methodological approaches. This results in the coding of more than 85 variables capturing the methodology of the main dimensions of the analysis at the regression level. These dimensions include authors' reputation, type of mobility, measures of mobility, type of data, context of the study, econometric methods, and last but not least measures of the climatic factors. We look at the influence of these characteristics on the probability of finding any effect of climate change, a displacement effect, an increase in immobility, and evidence in favor of a direct vs. an indirect effect. Our results highlight the role of some important methodological choices, such as the frequency of the data on mobility, the level of development, the measures of human mobility and of the climatic factors as well as the econometric methodology.
This paper empirically investigates the effect of transnational migrants on gender equality in the country of origin measured by the share of women enrolled in the lower chamber of National Parliaments. We test for a “migration-induced transfer of norm” using panel data from 1970 to 2010 in 10-year intervals. Total international migration has a positive and significant effect on female political empowerment in countries of origin conditional on the initial female parliamentary participation in both origin and destination countries. Endogeneity issues are taken into account and results are tested under specific geo-political subsamples.
The current study assesses the role of the pay-as-you-go system as an intergenerational redistributive mechanism while immigration control is considered. A theoretical model of a small open economy populated with overlapping generations of heterogeneous agents is used to show that skill-favouring immigration policies are, under rather permissive conditions, welfare depriving for the overall population. However, the policy-setting generation is shown to benefit from immigration control, thus decreasing the welfare for the future population.
This paper revisits the question of how brain drain affects the optimal education policy of a developing economy. Our framework of analysis highlights the complementarity between public spending on education and students' efforts to acquire human capital in response to career opportunities at home and abroad. Given this complementarity, we find that brain drain has conflicting effects on the optimal provision of public education. A positive response is called for when the international earning differential with destination countries is large, and when the emigration rate is relatively low. In contrast with the findings in the existing literature, our numerical experiments show that these required conditions are in fact present in a large number of developing countries; they are equivalent to those under which an increase in emigration induces a net brain gain. As a further contribution, we study the interaction between the optimal immigration policy of the host country and education policy of the source country in a game-theoretic framework.
This study examines the gender dimension of the brain drain in Turkey, drawing on the results of an online survey to argue that the gender inequality present in sending countries can serve as a push factor in women's decisions to migrate and return or not return. The results indicate that the gender gap in the labor market in Turkey is an important factor in shaping the return intentions of female Turkish professionals and students living abroad. The findings reveal a gender gap in return intentions independent of other main factors, such as age, field of study/occupation, or duration of stay.