Aggregate Fluctuations and International Migration

Traditional theories of integration such as the optimum currency area approach attribute a prominent role to international labour mobility in coping with relative economic fluctuations between countries. However, recent studies on international migration have overlooked the role of short-run factors such as business cycles or changes in employment rates in explaining international migration flows. This paper aims to fill that gap. We first derive a model of optimal migration choice based on an extension of the traditional Random Utility Model. Our model predicts that an improvement in the economic activity in a potential destination country relative to any origin country may trigger some additional migration flows on top of the impact exerted by long-run factors such as the wage differential or the bilateral distance. Compiling a dataset with annual gross migration flows between most developed countries over the 1980-2010 period, we empirically test the magnitude of the effect of these short-run factors on bilateral flows. Our econometric results indicate that aggregate fluctuations and employment rates affect the intensity of bilateral migration flows. We also provide compelling evidence that the Schengen agreement and the introduction of the euro significantly raised the international mobility of workers between the member countries

Migration Costs and Networks: household optimal investment in migration

International migration is an expensive form of investment, that only households relatively better off can afford. However poorer households have the higher incentive to migrate. Migration decision is conditional on the entry cost, expected returns and risks of migration. This paper, using data from Mexican rural and urban areas, examines the relation between household and community networks and costs and risks of migration focusing on the optimal investment in migration. To investigate an household optimal number of migrants this paper introduces a Three Step procedure to solve simultaneously for the endogeneity of network size and possible selection of migrants. The analysis confirms the inverted U-shaped relation between wealth and migration, stressing the importance of networks particularly in facilitating the migration of social strata belonging to the left tail of the income distribution. Moreover, in presence of sunk costs and/or high initial investment, household and community networks accomplish different functions

The effects of immigration on wages: An application of the structural skill-cell approach

This paper investigates how recent immigration inflows from 2002 to 2008 have affected wages in Switzerland. This period is of particular interest as it marks the time during which the bilateral agreement with the EU on the free cross-border movement of workers has been effective. Since different types of workers are likely to be unevenly affected by recent immigration inflows, we follow the ”structural skill-cell approach” as for example employed by Borjas (2003) and Ottaviano and Peri (2008). This paper provides two main contributions. First, we estimate empirically the elasticities of substitution between different types of workers in Switzerland. Our results suggest that natives and immigrants are imperfect substitutes. Regarding different skill levels, the estimates indicate that workers are imperfect substitutes across broad education groups and across different experience groups. Second, the estimated elasticities of substitution are used to simulate the impact on domestic wages using the actual immigration inflows from 2002 to 2008. For the long run, the simulations produce some notable distributional consequences across different types of workers: While previous immigrants incur wage losses (−1.6%), native workers are not negatively affected on average (+0.4%). In the short run, immigration has a negative macroeconomic effect on the average wage, which, however, gradually dies out in the process of capital adjustment

Lower job satisfaction among workers migrating within Europe: A gender paradox

Intra-European migrants reported lower job satisfaction levels than native workers, in three rounds of the European Social Survey. This deficit was also experienced by their descendants (the second generation), despite the latter generation achieving native levels of household income. At least some part of these lower levels of job satisfaction was associated with a clustering into lower-productivity industries. There are striking gender differences in experiences: among men the first generation is just as likely to be satisfied with their jobs as the ‘native’ population, whilst it is the second generation who are less likely to achieve job satisfaction. For women, both generations experienced a deficit in job satisfaction. This may reflect changing expectations of work among men, and integration for women, across generations, and contrasts with the convergence in earnings over time. The country of origin, within Europe, did not seem to be associated with levels of job satisfaction

Hispanic Immigration to the United States

This chapter presents some of the exceptional characteristics of recent Hispanic immigration to the United States. In 2005, there were nearly 40 million Hispanic immigrants and descendants of Hispanic immigrants living in the U.S. The assimilation experience of this large cultural group does not seem to be following the path past immigrants to the U.S. followed. Most third generation Hispanics in the U.S. still find themselves with income and education levels below the U.S. averages. Most forecasts predict that about 60 million Hispanics and Hispanic-Americans will be living in the U.S. by 2030

Migration, Remittances and Capital Accumulation: Evidence from Rural Mexico

This article studies the link between migration, remittances and asset accumulation for a panel of poor rural households in Mexico over the period 1997--2006. In a context of financial markets' imperfections, migration may act as a substitute for imperfect credit and insurance provision (through remittances from migrants) and, thus, exert a positive effect on investment. However, it may well be the case that remittances are channelled towards increasing consumption and leisure goods instead. Exploiting within family variation and an instrumental variable strategy, we show that migration indeed accelerates productive assets' accumulation. However, when we look at the effect of migration on non-productive assets (durable goods), we find a negative effect. Our results then suggest that poor rural families resort to migration as a way to mitigate constraints that prevent them from investing in productive assets

Hypoalbuminemia in the outcome of patients with non-variceal upper gastrointestinal bleeding

AbstractIntroduction and aimThe role of serum albumin level in patients with non-variceal upper gastrointestinal bleeding (NVUGB) has not been extensively studied. Our aim was to evaluate the role of serum albumin on admission in terms of in-hospital mortality in patients with NVUGB.Materials and methodsPatients admitted with NVUGB during a 4-year period were prospectively included. Demographic, clinical, and laboratory data were collected. ROC curve analysis was used to determine the cutoff value for serum albumin on admission that made a distinction between deceased patients and survivors with respect to serum albumin on admission, as well as its overall performance compared with the Rockall score.Results185 patients with NVUGB were evaluated. Men predominated (56.7%) and a mean age of 59.1±19.9 years was found. Mean serum albumin on admission was 2.9±0.9g/dl with hypoalbuminemia (< 3.5g/dl) detected on admission in 71.4% of cases. The ROC curve found that the best value for predicting hospital mortality was an albumin level of 3.1g/dl (AUROC 0.738). Mortality in patients with albumin ≥ 3.2g/dl was 1.2% compared with 11.2% in patients with albumin<3.2g/dl (P=.009; OR 9.7, 95%CI 1.2-76.5). There was no difference in overall performance between the albumin level (AUORC 0.738) and the Rockall score (AUROC 0.715) for identifying mortality.ConclusionsPatients with hypoalbuminemia presenting with NVUGB have a greater in-hospital mortality rate. The serum albumin level and the Rockall score perform equally in regard to identifying the mortality rate