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Social Science > Emigration and Immigration

You are looking at 1 - 6 of 6 items for :

  • Type: Journal Issue x
  • Labor Standards: Labor Force Composition x
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Cover IMF Working Papers
The Joint Effect of Emigration and Remittances on Economic Growth and Labor Force Participation in Latin America and the Caribbean
Alina Carare
,
Alejandro Fiorito Baratas
,
Jessie Kilembe
,
Metodij Hadzi-Vaskov
, and
Wenzhang Zhang
We provide a consistent empirical framework to estimate the net joint effect of emigration and remittances on the migrants’ countries of origin key economic variables (GDP growth and labor force participation), while addressing the endogeneity concerns using novel “shift-share” instrumental variables in the spirit of Anelli and others (2023). Understanding this joint impact is crucial for the Latin America and the Caribbean region that has seen a continuous growth in remittances over the past decades, due to steady emigration, and where remittances represent the largest capital inflows for many countries now. Focusing on the past two decades (1999-2019), this study finds that on average emigration has a negative and statistically significant impact on contemporaneous economic growth and change in labor force participation in the countries of origin across LAC, while remittances partially mitigate this adverse impact—especially on economic growth—resulting in a small negative net joint effect. There are significant differences across subregions for all estimates, with the largest negative effects observed in the Caribbean. In addition, the negative impact of emigration and remittances on the change in labor participation is small, but for the youngest cohort (15-24) is twice as large as for the overall labor force participation. The results are robust to various specifications, variables, and measurements of emigration and remittances.
Keywords:
Emigration; Remittances; Labor Force Participation; Economic Growth; Latin America; emigration flow; emigration rate; remittances in Lac; estimates of emigration; remittances on the migrants' countries of origin; Migration; Income; Caribbean; Central America; South America
Cover IMF Staff Country Reports
Australia: Selected Issues
International Monetary Fund. Asia and Pacific Dept
This Selected Issues paper examines macroeconomic impact of migration in Australia. Migration in Australia has historically been a significant source of population growth, with a third of the population born overseas. Migration is set to become even more important as the population natural growth rate declines. Australia attracts some of the best-educated migrants to Organization for Economic Cooperation and Development countries who are mostly skilled workers and students, with high labor force participation rates and low unemployment. Disentangling macroeconomic effects of migration from drivers of migration is challenging, but within Australia, migration surges have historically been associated with higher growth and favorable labor market outcomes, with negligible price pressures except in the housing market. Cross-country analysis using instrumental variables confirms a positive impact of migration on macroeconomic outcomes—output, employment, and productivity—without significant inflationary impact. While housing affordability is impacted at the margin, this could represent structural supply shortages and would be best addressed by boosting supply.
Keywords:
inflow shock; labor market outcome; I. Effects of Migration shock; macroeconomic outcome; labour outcome; Migration; Labor force participation; Population growth; Housing prices; Global
Cover IMF Staff Country Reports
Colombia: Selected Issues
International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper focuses on Venezuelan migration and the labor market. Over 2 million migrants have crossed the border from Venezuela and continue to join Colombia’s labor market—which remains weak overall with rising unemployment and falling participation. There is so far little evidence of displacement effects on account of immigration, however, as the Colombian informal sector has capably absorbed most of the migrant inflow. A more granular view of Colombia’s local labor markets does not show weaker employment outcomes in those that have received the most migrants. However, with many of these workers being highly skilled and attached to the informal sector, evidence of labor misallocation highlights the need to continue integration policies. The government is conducting efforts to accelerate the validation of Venezuelan degrees for easing the integration of professional migrants and high-school educated migrants who wish to continue their university studies in Colombia.
Keywords:
ISCR; CR; Colombian peso; trading partner; export volume; price effect; oil price shock; dollar export values contract; non-traditional export; Exports; Depreciation; Labor markets; Migration; Labor force participation; Global
Cover IMF Working Papers
Storm Clouds Ahead? Migration and Labor Force Participation Rates in Europe
Benjamin Hilgenstock
and
Zsoka Koczan
The paper examines the potential effects of international migration on labor force participation in advanced economies in Europe. It documents that migration played a significant role in alleviating aging pressures on labor supply by affecting the age composition of receiving countries’ populations. However, micro-level analysis also points to differences in average educational levels, as well as differences in the effects of any given level of education on participation across migrants and natives. Difficulties related to the recognition of educational qualifications appear to be associated with smaller effects of education on the odds of participation for migrants, especially women.
Keywords:
WP; migrant; Labor force participation; aging; migration; migration scenario; participation decision; integration policy; policy stance; age effect; net migration; way migrant; age composition effect; Europe
Cover Staff Discussion Notes
Emigration and Its Economic Impact on Eastern Europe
Mr. Ruben V Atoyan
,
Lone Engbo Christiansen
,
Allan Dizioli
,
Mr. Christian H Ebeke
,
Mr. Nadeem Ilahi
,
Ms. Anna Ilyina
,
Mr. Gil Mehrez
,
Mr. Haonan Qu
,
Ms. Faezeh Raei
,
Ms. Alaina P Rhee
, and
Ms. Daria V Zakharova
This paper analyses the impact of large and persistent emigration from Eastern European countries over the past 25 years on these countries’ growth and income convergence to advanced Europe. While emigration has likely benefited migrants themselves, the receiving countries and the EU as a whole, its impact on sending countries’ economies has been largely negative. The analysis suggests that labor outflows, particularly of skilled workers, lowered productivity growth, pushed up wages, and slowed growth and income convergence. At the same time, while remittance inflows supported financial deepening, consumption and investment in some countries, they also reduced incentives to work and led to exchange rate appreciations, eroding competiveness. The departure of the young also added to the fiscal pressures of already aging populations in Eastern Europe. The paper concludes with policy recommendations for sending countries to mitigate the negative impact of emigration on their economies, and the EU-wide initiatives that could support these efforts.
Keywords:
SDN; CESEE country; CESEE emigration; labor force; CESEE emigrant; migration flow; Emigration; remittances; growth; convergence; Eastern Europe; EU migration scenario; remittance inflow; Migration; Income; Labor force participation; Baltics; Western Europe; Europe; EU policy scenario; UN migration scenario; income convergence; impact of emigration; emigration from CESEE; Skilled labor
Cover IMF Working Papers
Garbage In, Gospel Out? Controlling for the Underreporting of Remittances
Tigran A. Melkonyan
,
Mr. David A. Grigorian
, and
J. Scott Shonkwiler
Empirical studies that use self-reported data on remittances to measure the latter's impact on microeconomic incentives mostly ignore the potential errors associated with reporting/measurement issues. An econometric procedure to control for these errors is developed and applied to household-level data from Armenia. We find evidence of systematic under-reporting of remittances. After controlling for this, we find a strong negative impact of remittances on incentives to work.
Keywords:
WP; dummy variable; model estimation; A. equation specification; model specification; measurement error; remittance equation; Remittances; Labor supply; Labor force participation; Migration; Income; Middle East