Migration

Leah Boustan, 21 February 2020

A century ago, American nativists succeeded in establishing immigration quotas to drive up the wages of US workers. What happened next? Not what you might think, Leah Boustan tells Tim Phillips.

Graziella Bertocchi, Marianna Brunetti, Anzelika Zaiceva, 07 February 2020

The financial decisions made by immigrants are likely to differ substantially from those made by natives. Using data from a Bank of Italy survey, this column compares native Italian and immigrant households and shows that immigrants find themselves worse-off both in terms of wealth holdings and allocation across assets. These gaps can affect immigrants’ wellbeing, inhibit integration, and have consequences for the country’s financial markets.

Alvaro Calderon, Vasiliki Fouka, Marco Tabellini, 01 February 2020

The 1940-1970 Great Migration of African Americans was one of the largest episodes of internal migration in the US. This column examines how resulting changes in the racial composition of local constituencies affected voters’ preferences and politicians’ behaviour. It finds that Democrats and union members supported blacks’ struggle for racial equality, but that backlash against civil rights erupted among Republicans and among whites who more exposed to racial mixing of their neighbourhoods. It also shows that politicians largely responded to demands of their constituencies. The findings suggest that under certain conditions, cross-race coalitions can emerge, but they also indicate that changes in the composition of the electorate can polarise both voters and politicians.

Sascha O. Becker, Irena Grosfeld, Pauline Grosjean, Nico Voigtländer, Ekaterina Zhuravskaya, 28 January 2020

Can the experience of being uprooted by force encourage people to invest in portable assets such as education? The idea has a long history but is a difficult hypothesis to test. This column combines data from historical censuses with newly collected survey data to show that Polish people with a family history of forced migration as a result of WWII are significantly more educated today than any comparison group. The results suggest a shift in preferences toward investment in human rather than physical capital, and imply that the benefits of providing schooling for forced migrants and their children may be even greater – and more persistent – than previously thought.

Anna Maria Mayda, Christopher Parsons, Han Pham, Pierre-Louis Vézina, 20 January 2020

While resettled refugees in the US historically exhibit remarkable success, this column shows that refugees also foster development to their origin countries through the mechanism of foreign direct investment. A 10% increase in refugees in a given commuting zone causes outward FDI flows to increase to their countries of origin, 10 to 15 years after having taken refuge, by 0.54%. Decisions made primarily for humanitarian reasons in developed host nations thus yield economic benefits for some of the world's poorest nations in the medium run.

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