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IV Results IV Results IV Results Results Restrict sample Poor (non-industrialized) to Rich (industrialized) countries Limited to within Europe Results almost identical Role of Social Networks Recall: Social networks increase migration by decreasing transaction costs and increasing social support. Test by creating interactions between bilateral migrant stock and Political Risk: Citizenship policy, right wing vote Transactions Costs: Distance, income in origin country Labor Market Risk: Wage ratio, unemployment Discussion “Unpacked” Citizenship Policy No component was insignificant; all part of general set of policies that attract migrants Further consideration of Sending country characteristics Democracy, human rights, etc Ambiguous effect for labor migrants (contract with refugees) External Voting Rights Conclusions Given networks of co-ethnics you cannot stop immigrants, you can only hope to contain them Increase wages in origin relative to destination Limit employment, citizenship rights access to welfare in receiving countries. Numerous countries have institutionalized “friends and family” connections US policy provides 75% of annual visas for purpose of family (re)-unification Extensions Three Rs Recruitment: who leaves Return: who returns Remittances: capital flows Linkages to other international flows Financial transactions Linkages to other Policy Changes Rise of external voting Support function: surveys of Mexicans in the US, Turks in Germany, Pakistanis in London Information finction: information flows about regulatory, housing and employment environment. Evidence from Mexican villages, Philipino families and Great Black Migration in the US * * Welfare=demographics, left wing government Unemployment=demographics, labor market institutions Citizenship=legal origin, migrant stock RT=upper tier, unemp, migrant stock * Patterns of unemployment: respond to changes in relative prices but these are mitigated by labor market institutions * Defying the Law of G
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