Lecture 6 Migration.pdf - International Labour Markets Spring 2018 Peter Jensen Department of Economics and Business Aarhus University Migration •

Lecture 6 Migration.pdf - International Labour Markets...

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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?
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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
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3 Background Background
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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”
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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
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