1 International Labour Markets Spring 2018 Peter Jensen Department of Economics and Business Aarhus University Migration • Literature: Chapter 10 in “Modern Labor Economics” • Why do people migrate? • Who migrates? • What are the returns to migration? • What are the labor market effects of migration? • What is the overall impact of immigration?
2 Introduction • Worker mobility can take different forms: 1. Finding a new job, but no relocation (turnover) 2. Migration within the country 3. Migration across countries • Mobility can be viewed as an investment by the worker → costs paid in exchange for expected future benefits • We can analyze mobility investments using the human capital model • Our focus will be on international migration Background • Historically, about 60 million Europeans moved away from Europe in 1820-1940: two- thirds of them went to the US • Currently, Europe is attracting more migrants in proportion to its population than the US • There is growing migration from developing countries • Another driving factor has been the fall of the “Iron Curtain” and the EU enlargements
3 Background Background
4 Background Why do people migrate? • Economic factors – Prospects of better job and higher earnings – Prospects of improved welfare – Family or household decision • Non-economic factors – War – Love / marriage – Taste for adventure – Language proximity or “herd behavior”
5 Different types of migrants • Economic migrants : moving for jobs and income prospects • Tied movers (family reunification): moving for family reasons • Refugees : moving away from war or political / religious persecution • Illegal migrants : moving for economic reasons • Short-term migrants: education or jobs Benefits of mobility • The expected benefits associated with a move: 1. Higher expected future earnings 2. Lower expected unemployment rates 3. Higher returns to education 4. More pleasant jobs