Institutions are implicit or explicit rules that bring people with the same objective together. In this video, Kaivan Munshi discusses the role of informal community-based institutions in migration and the development process. Pre-existing social groups support migration and eventually development. This video was shot during the conference on “Economic Development and Institutions” held in Paris in June 2016.
Munshi Kaivan, 29 June 2016
Timothy Hatton, 23 May 2016
The Syrian exodus has created a crisis that has thrown the existing European asylum system into chaos and has led to an increasingly polarised debate over solutions. This column argues that in the long term, we need to shift away from the current system of ‘spontaneous’ asylum migration towards a comprehensive resettlement programme. However, a radical shift towards resettlement is unlikely while the Syrian crisis continues at its current intensity.
Allison Shertzer, Randall Walsh, 19 May 2016
US cities became increasingly segregated by race over the 20th century. General consensus holds that most of this segregation was concentrated in the post-war period. This column uses neighbourhood-level data to find that racial segregation in cities began earlier; indeed, much of it had taken place by 1930. The column also examines the residential response of whites to black arrivals, suggesting that this contributed to segregation in addition to discrimination and institutional factors.
Jacob Kirkegaard, 25 January 2016
The migrant crisis will continue to top headlines in 2016. This column takes a detailed look at the EU’s response to dealing with migration, concluding that everything points towards failure as the likely outcome. Unlike the most critical aspects of the Eurozone Crisis, the main drivers of the current migration emergency are external factors such as war. These circumstances are highly unlikely to change in the medium term. The hardball politics and threats that proved extraordinarily effective in coercing member states into accepting domestic political conditionality in return for financial aid during the Eurozone Crisis are doomed to fail when it comes to migration.
Matthew Bloomfield, Ulf Brüggemann, Hans Christensen, Christian Leuz, 17 December 2015
Labour mobility is an important prerequisite for the efficiency of labour markets. In the EU, however, different standards across countries present an implicit economic barrier for high-skilled professionals. This column examines how the recent EU harmonisation of professional standards in accounting affected cross-border migration relative to other professionals. The harmonisation had a strong positive effect on accountants’ cross-border migration. Harmonisation could thus be a potentially powerful tool for policymakers seeking to improve labour market efficiency.
Scott Ross Baker, Nicholas Bloom, Steven Davis, 15 December 2015
The recent influx of refugees to Europe has stoked security fears and created anxiety about the social and economic consequences. This column provides new quantitative indicators for the intensity of migration-related fears and policy uncertainty, based on newspaper articles. The indices are presented for the US, UK, France, and Germany, and extend back to 1995. They show that recent levels of concern and uncertainty in European countries about migration are unprecedented.
William Kerr, Martin Mandorff, 31 October 2015
Immigrants are more likely to concentrate around specific industries and entrepreneurship. Market integration and discrimination only go a certain way towards explaining this phenomenon. This column explores how social interactions affect immigrants’ employment decisions in the US. Fifteen ethnic groups are found to cluster around certain industries at a rate 10 times greater than the native population. Immigrants are argued to be drawn to the same industries as their countrymen due to the ease of diffusing skills through social interactions in the group, along with higher earnings due to specialisation.
Emilie Anér, Anna Graneli, Magnus Lodefalk, 14 October 2015
A large body of research has established a positive link between immigrants and bilateral trade. However, the temporary movement of people across borders has received less attention. This column uses Swedish data to analyse the impact of temporary cross-border movement on trade. Recently arrived migrants are found to reduce the negative impact of distance on foreign trade, by assisting firms to overcome informal and informational barriers to trade with their origin country. Facilitating movement of people across borders can be a highly useful tool for engaging in and benefitting from specialised and internationalised production networks.
Timothy Hatton, 05 June 2015
As a result of the Arab Spring and conflicts in the Middle East, thousands of people have been boarding boats from North Africa and making for Europe. This columns discusses the progress the EU has made in dealing with the situation. Many important decisions and critical actions still need to be made.
Corrado Giulietti, Jackline Wahba, Yves Zenou, 21 December 2014
Migration is heavily influenced by social networks. Nonetheless, little is known about the underlying mechanisms. This column uses a new dataset from China to disentangle the effects of strong and weak ties on the migration decision. The findings indicate that strong and weak ties act as complements. Having many weak ties with an urban area amplifies the positive impact of having a strong tie in the same area.
Frédéric Docquier, Çağlar Özden, Giovanni Peri, 06 October 2014
Researchers have devoted little attention to the effects of emigration from OECD countries, and the absence of detailed emigration data is the main culprit. Using a new and improved migration database, this column analyses the effect of migration on the wages of less educated native workers. The results suggest that, as far as labour market outcomes of less educated workers are concerned, governments should worry less about new arrivals and more about the potential consequences of their high emigration rates.
Assaf Razin, Efraim Sadka, 01 September 2014
European migration exhibits a bias towards low-skilled workers, whereas the US attracts the majority of the world’s skilled migrants. At the same time, the welfare system in Europe is more generous than the one in the US. This column describes an analytical framework that can explain the existence of these differences. Whether a group (union) of member states competes or coordinates its policies has an impact on the skill composition of its migrants and the generosity of the welfare system.
John Helliwell, Shun Wang, Jinwen Xu, 12 March 2014
Social norms have been shown to have important effects on economic outcomes. This column discusses new evidence showing that social norms are deeply rooted in long-standing cultures, but do evolve in reaction to major changes. It draws on a fully global sample involving migrants in more than 130 countries, using seven waves of the Gallup World Poll.
Giulia Bettin, Andrea Presbitero , Nikola Spatafora, 10 February 2014
Remittances are one of the most important financial flows to developing countries – more than three times the level of official development assistance. This column presents recent research on remittance flows from Italy. Their limited volatility and countercyclical behaviour with respect to macroeconomic conditions in the recipient country help mitigate developing countries’ vulnerability to external shocks. Better access to financial services for migrants can foster remittance flows.
Christian Dustmann, Tommaso Frattini, 13 November 2013
The immigration debate has focused on immigrants’ net fiscal impact – whether they receive more in welfare payments and other benefits than they pay back in taxes. This column summarises research showing that – contrary to popular belief – immigrants who arrived in the UK since 2000 have contributed far more in taxes than they have received in benefits. Compared with natives of the same age, gender, and education level, recent immigrants are 21% less likely to receive benefits.
Jan van Ours, 06 October 2013
In absolute terms, the Great Recession affected the unemployment rate of non-Western immigrants more than that of native workers in the Netherlands. However, this merely reflects their generally weak labour-market position – job-finding rates are much lower for non-Western immigrants than they are for natives. There is little difference between the cyclical sensitivity of these two groups’ unemployment or job-finding rates. In relative terms, the labour-market position of non-Western immigrants is bad, but the Great Recession did not make it worse.
Simone Bertoli, Francesca Marchetta, 04 October 2013
Return migrants have major social and economic consequences for their countries of origin. This column uses Egyptian household-level data to analyse the effects of migrants returning from neighbouring Arab countries. Start-up firms by returnees are more likely to survive, and returnee families tend to have more children. These results imply that return migration may not be an unmitigated blessing for Egypt.
Henrik Kleven, Camille Landais, Emmanuel Saez, Esben Schultz, 17 September 2013
How responsive is international migration by high-skilled workers to tax differentials across countries? This column provides evidence from Denmark suggesting that a preferential scheme was highly successful in attracting rich foreigners. It warns that, absent international tax coordination, preferential tax schemes to high-income foreigners could substantially weaken tax progressivity at the top of the distribution.
Carsten Fink, Ernest Miguelez, Julio Raffo, 17 July 2013
Migration is a hot-button issue across the globe. This column summarises new evidence on the patterns of skilled-worker migration, focusing on the specific case of inventors. A novel data source that traces worldwide migration flows for inventors suggests that, excluding a few nuances, the economic incentives for general migration also seem to influence inventors’ migration decisions.
Pierre-Philippe Combes, Sylvie Démurger, Li Shi, 17 February 2013
This paper evaluates the role that cities play on individual productivity in China. The authors' results strongly support the productivity gains that can be expected from further migration and urbanisation in China.