Migration

Vasiliki Fouka, Soumyajit Mazumder, Marco Tabellini, 17 June 2018

The ability of a state to accommodate diverse populations depends on how successfully immigrant groups can assimilate. The column use data from the south-north migration of 1.5 million African Americans between 1910 and 1930 to show that the appearance of other low-status groups can promote assimilation among pre-existing immigrants. The new low-status group makes existing immigrants appear less socially distant to natives. This suggests that assimilation policies that target native attitudes might as promising as interventions directed at immigrants.

Stephen Cecchetti, Kim Schoenholtz, 08 June 2018

Global remittances total $600 billion annually - equivalent to about four times the value of development assistance. Yet despite huge innovations in the underlying technology, the cost of remittances remains persistently high, at around 7% on average. Stephen Cecchetti and Kim Schoenholtz discuss the causes of this, and suggest some options available to policymakers to lower costs. The G8, G20 and Sustainable Development Goals targetting lower remittance costs could be realised by a two-pronged approach of educating consumers on the one hand and fostering competition among providers on the other.

Michele Battisti, Giovanni Peri, Agnese Romiti, 05 June 2018

Most of the evidence from studies analysing the effect of ethnic concentration on immigrants’ employment and earnings points to a positive effect of network size on labour market outcomes. This column uses data from social security records in Germany to show that a larger co-ethnic network in the location of first settlement can increase the short-run probability of finding a job but can also hinder human capital investment, limiting the benefits of the larger network over the long run.

Joan Monras, Javier Vázquez-Grenno, Ferran Elias, 15 May 2018

Studies have shown that granting work permits helps immigrants settle and integrate into host economies, but we know relatively little about how host economies are affected by the mass legalisation of immigrant workers. This column uses one of the largest and most unexpected legalisations in the world – by the Zapatero government in Spain – to show how legalisation can increase public revenues, but can also have distributive consequences for other workers in the economy.

Assaf Razin, 06 May 2018

The exodus of Soviet Jews to Israel in the 1990s was a unique event. This column shows that this immigration wave was distinctive for its large high-skilled cohort, and its quick integration into the domestic labour market. Immigration also changed the entire economic landscape, raising productivity and underpinning the information technological surge. Israel’s unusually robust assimilation of immigrants into the economic sphere and the electoral system has transformed the political balance and triggered significant changes in income distribution.

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