The migratory impact of minimum wage legislation: Puerto Rico, 1970-1987

"This study examines the impact of minimum wage setting on labor migration. A multiple time series framework is applied to monthly data for Puerto Rico from 1970-1987. The results show that net emigration from Puerto Rico to the United States fell in response to significant changes in the manner in which minimum wage policy was conducted, particularly after 1974. The extent of commuter type labor migration between Puerto Rico and the United States is influenced by minimum wage policy, with potentially important consequences for human capital investment and long-term standards of living."     

EFFECT OF CAPITAL IMPORTS ON SAVINGS AND GROWTH IN LESS DEVELOPED COUNTRIES

This paper examines some of the arguments of the critics of foreign aid and other capital inflows to less developed countries (LDCs). The paper finds that the critics lack sufficient evidence on the supposedly adverse effect of capital transfers to LDCs on their savings and growth of incomes. This, however, does not mean that these capital inflows always promote growth in LDCs. In particular, it is shown that the relative importance of foreign capital on economic growth of LDCs would depend on the degree to which that growth is constrained by the lack of capital.     

Future trends in international migration to Europe

The author discusses future trends in international migration to Europe, with a focus on the impact of the economic situation on labor force needs and resources. Aspects considered include changes in foreign direct investments, changes in the size of the European labor market, and the potential emigration of the labor force in underdeveloped countries.     

The uncertain connection: free trade and rural Mexican migration to the United States

"Will a North American Free Trade Agreement (NAFTA) decrease Mexican migration to the United States, as the U.S. and Mexican governments assert, or increase migration beyond the movement that would otherwise occur, as NAFTA critics allege? This article argues that it is easy to overestimate the additional emigration from rural Mexico owing to NAFTA-related economic restructuring in Mexico. The available evidence suggests four major reasons why Mexican emigration may not increase massively, despite extensive restructuring and displacement from traditional agriculture....NAFTA-related economic displacement in Mexico may yield an initial wave of migration to test the U.S. labor market, but this migration should soon diminish if the jobs that these migrants seek shift to Mexico."     

The Capital City in the Context of accelerated Individualization. Reflections on the Bulgarian Experience

Privatization and competitive politics brought about accelerated individualization in Bulgarian society. Both the constructive and destructive effects of individualization are particularly concentrated in the country's capital city. It rapidly shifted its economic structure from industry to services and re-oriented its territorial morphology from north-west to south-east. These changes mostly took place in a spontaneous and often anomic way thus provoking the need for a new Master Plan of the capital city. Sociological studies supported its preparation. Below the surface of a relatively stable size of the capital's population they revealed substantial migration to Sofia during the 1990s together with continuing large-scale emigration of the young, best educated and entrepreneurial population cohorts. Recent studies confirm this trend despite of the fact that the capital city is economically in the best position in comparison with all other settlements in the country. The conclusion is that the economic, political and cultural re-integration of Bulgarian society is still incomplete and this may be noticed in all its structural levels, administrative and territorial units, the capital city including. Thus, new institutional strategies are needed for coping with the effects of accelerated individualization. In the capital city, the core of these strategies should be the strengthening of the economic, political and cultural basis of its communal integration.     

Emigration dynamics of eastern African countries

This examination of emigration dynamics focuses on 13 countries extending from Eritrea to Zimbabwe and Mozambique on the eastern African mainland and on 5 Indian Ocean island nations. The first part of the study looks at the temporal, spatial, and structural perspectives of emigration dynamics. Part 2 considers international migration in the region according to Appleyard's typology (permanent settlers, labor migration, refugees, and illegal migrants) with the additional category of return migration. Measurement issues in emigration dynamics are discussed in part 3, and the demographic/economic setting is the topic of part 4. The demographic factors emphasized include spatial distribution, population density, population structure, population dynamics, demographic transition, and the relationship between internal and international migration. Other major topics of this section of the study are the economic base, the human resource base, population and natural resources, the sociocultural context (emigration, chain migration, return migration, and migration linkages and networks), political factors (including human rights, minority rights and security, regional integration and economic cooperation, and the impact of structural adjustment programs), and a prediction of future emigration dynamics. It is concluded that refugee flows remain a major factor in eastern African countries but the development of human resources in the northern portion of the region indicates development of potential labor migration from this area. Data constraints have limited measurement of emigration in this region and may contribute to the seeming indifference of most eastern African countries to emigration policies. Emigration in this region has been triggered by deteriorating economic and political conditions and is expected to increase.     

Violence,Networks, and International Migration from Colombia

Although Colombia is a major country of emigration, little is known about its citizens' motivations for migration. Social and economic conditions have been studied as determinants of migration, but violence has received less attention. We examine how social networks and violence function to promote emigration from Colombia by linking event‐history data from the Latin American Migration Project to external data on violence and economic conditions. We show that emigration is more likely to be initiated by those with higher education, those with network connections to migrants, and during periods of greater violence and increased police presence. Although violence acts powerfully to determine when people migrate, the geographic distribution of social capital determines where they go. Not surprisingly, migrants go to locations where people in their social networks are currently living or have been earlier.     

Multi‐sited accumulation of capital: Cape Verdean returnees and small‐scale business

In recent years, policymakers have portrayed return migration as positive for development. In both migrant sending and migrant receiving countries, policymakers expect the transfer of economic, cultural and social capital by returnees to stimulate economic growth. Inherent in these assumptions is the idea of a unidirectional flow of capital from northern countries of immigration to the countries of return. The objective of this article is to contest this idea of a one‐way transfer of capital through a case study of Cape Verdean returnee business owners. To what extent have they accumulated their various forms of capital before emigration, during their sojourn abroad or after return? In this article, I examine the returnees' multi‐sited accumulation of capital and how it corresponds to the resources they need to run a sustainable business. In addition, I analyse how they adapt capital accumulated abroad to the conditions in Cape Verde.     

Causes,Challenges and Prospects of Brain Drain: The Case of Eritrea

While there is little doubt that highly skilled workers in many Least Developed Countries (LDCs) are scarce, it is also true that many highly trained professionals have left LDCs to go and work in the developed world. The latter, known as the “brain drain,” or simply human capital flight, is not at all a new phenomenon; it has only become more pronounced in recent years. This paper delves into the causes, challenges, and prospects of the phenomenon of the “brain drain” in LDCs, by taking Eritrea as a case study. In so doing, it demonstrates that deteriorating economic conditions, lack of good governance and political instability are the root causes of the “brain drain” in LDCs such as Eritrea. The paper also highlights the impact of the “brain drain”, and suggests some of the measures that may be put in place by governments of LDCs in order to redress the situation.     

Managing Migration: The Role of Economic Instruments

This paper reviews economic policies and instruments available to the developed countries to reduce unwanted migration from developing countries, not all of which is irregular migration. Countries generally welcome legal immigrants and visitors, try to make it unnecessary for people to become refugees and asylum seekers, and try to discourage, detect, and remove irregular foreigners. There are three major themes: 1. There are as many reasons for migration as there are migrants, and the distinction between migrants motivated by economic and non–economic considerations is often blurred. Perhaps the best analogy is to a river – what begins as one channel that can be managed with a dam can become a series of rivulets forming a delta, making migration far more difficult to manage. 2. The keys to reducing unwanted migration lie mostly in emigration countries, but trade and investment fostered by immigration countries can accelerate economic and job growth in both emigration and immigration countries, and make trading in goods a substitute for economically motivated migration. Trade and economic integration had the effect of slowing emigration from Europe to the Americas, between southern Europe and northern Europe, and in Asian Tiger countries such as South Korea and Malaysia. However, the process of moving toward freer trade and economic integration can also increase migration in the short term, producing a migration hump, and requiring cooperation between emigration and immigration destinations so that the threat of more migration does not slow economic integration and growth. 3. Aid, intervention, and remittances can help reduce unwanted migration, but experience shows that there are no assurances that such aid, intervention, and remittances would, in fact, lead migrants to stay at home. The better use of remittances to promote development, which at US$65 billion in 1999 exceeded the US$56 billion in official development assistance (ODA), is a promising area for cooperation between migrants and their areas of origin, as well as emigration and immigration countries. There are two ways that differences between countries can be narrowed: migration alone in a world without free trade, or migration and trade in an open economy. Migration will eventually diminish in both cases, but there is an important difference between reducing migration pressures in a closed or open world economy. In a closed economy, economic differences can narrow as wages fall in the immigration country, a sure recipe for an anti–immigrant backlash. By contrast, in an open economy, economic differences can be narrowed as wages rise faster in the emigration country. Areas for additional research and exploration of policy options include: (1) how to phase in freer trade, investment, and economic integration to minimize unwanted migration; (2) strategies to increase the job–creating impacts of remittances, perhaps by using aid to match remittances that are invested in job–creating ways.     

Causes of Uruguayan migration to Argentina

2 main hypotheses have been suggested to explain Uruguayan migration to Argentina: 1) political emigration because of the military regime imposed in June 1973 and 2) economic emigration because of the economic improvement in destination countries and the worsening conditions at home. A further formulation of the 2nd hypothesis incorporates sociodemographic factors in its theory. This paper elaborates a theoretical framework using human capital theories to formulate a model of the effects of the economic variables of wages and unemployment, and adds political and sociological variables to the model. The authors then quantify the relative effects of the political, human capital, and informational variables. Results of multivariate analysis show that for 1966-1981, 53.1% moved for economic reasons, 25.7% moved for political reasons, and 21.2% moved for social reasons. In the long run, the most important cause of migration to Argentina is related to the relative situation of regional labor markets and people's willingness to incur the costs of migration if there is a reasonable probability of economic improvement in the other country. Only from 1973-1975 are political and institution reasons of primary importance. In 1976, sociological reasons predominated.     

BRAIN DRAIN IN GLOBALIZATION: A GENERAL EQUILIBRIUM ANALYSIS FROM THE SENDING COUNTRIES' PERSPECTIVE

According to the economic literature, high‐skilled emigration may either harm or benefit developing economies. Recent research highlighted several positive and negative channels through which the brain drain operates. This paper aims at evaluating the relative magnitudes of various brain drain channels and quantifying their global impact on migrants' sending countries. For this purpose, we develop a 10‐region general equilibrium model of the world economy characterized by overlapping‐generations dynamics. Our findings suggest that the short‐run impact of brain drain on resident human capital is extremely crucial, as it affects not only the number of high‐skilled workers available to domestic production, but also the sending economy's capacity to innovate/adopt modern technologies. This latter effect is particularly important in globalization, where capital investments are made in places with high production efficiencies. Hence, despite positive feedback effects, those countries facing prevalent high‐skilled emigration are the most candid victims to brain drain. (JEL F22, J24, O57)     

Brain Drain Losses – A Case Study of Serbia

The focus of this paper is on an attempt to quantify economic losses due to ongoing and vast brain drain emigration from Serbia. We claim that socio‐economic losses in terms of implicit and explicit costs related to upbringing and education of emigrants as well as lost production are paramount. Therefore, the main argument is in line with pessimistic stances on migration and its effect on Serbian development. Massive emigration, especially of educated individuals, results in a great number of incalculable deficits for the country, which cannot be expressed and measured in monetary terms only. The authors argue that these are even more striking when viewed from a holistic perspective factoring in demographic, social, political, cultural and intellectual impacts. It is also shown how emigration of the highly educated greatly undermines local democracy and social cohesion in Serbia. Nevertheless, the authors also take note of contemporary transnational perspectives on migration and development and present possible policies aimed at exploiting advantages of human capital and social networks of migrants and diaspora, circular mobility and returns.     

International Migration Policies: 1950-2000

Policies on international migration since the Second World War reflect the enormous changes in economic, social and political situations around the world.
The implications of changes in the volume and composition of international migration have increasingly become an issue of major concern to governments in all countries.
Following emigration from Europe to countries of the New World as a result of war-damaged economies, reconstruction witnessed high demand for migrant labour, mainly from parts of southern Europe. But by the early 1970s, decline in economic growth, unexpected impacts of the guest-worker scheme, and an increase in refugees from Third World countries led, in due course, to an era of restriction on entry of asylum-seekers and tighter controls over undocumented migration to developed countries.
A "new era" evolved during the 1990s, characterized by growing interdependence of major economic powers. Globalization led not only to a significant demand for highly-skilled and professional workers, but also to decision-making on some aspects of the migration process being transferred from the national to the regional level, and an increase in the influence of multinational corporations.
The globalization process, and the growing influence of international trade regimes, may well represent the first steps towards a new "international migration regime" that incorporates all types of migration.     

Foreign Student Emigration to the United States: Pathways of Entry,Demographic Antecedents,and Origin‐Country Contexts

This study uses data from various sources to examine the determinants of trends in international student migration to the United States. Our results highlight the differential contributions to these trends made by various entry pathways. For example, we find that the overall growth was driven by students using visas that offered the least possibility of US employment following the completion of their studies. We also find that overall student migration trends were significantly affected by global demographic changes. For example, student emigration from Europe was negatively affected by declining fertility trends, percentage of youths, and youth population size. In Asia and Africa, contrasting demographic trends explained the substantial student migration increases observed from these regions. Increases in youth population size had a particularly positive effect on student migration in contexts of economic growth. Finally, the analysis finds a declining significance of English language contexts for fueling overall student migration trends.     

Federal Public Investment Spending and Economic Development in Appalachiai

Abstract This analysis examines the relationship between federal public investment spending and economic development in the special case of Appalachia. We propose that the effects of federal public investment spending on economic development operate indirectly through private capital accumulation. We use a spatial lag regression model to test our ideas for the 1980s and the 1990s. In the first step, we show that average federal public investment spending from 1983–1989 and 1993–1999 has net positive effects on measures of private capital accumulation in Appalachia. In the second step, we add three indicators of county economic development in 1989/1999 and find that earnings and nonfarm employment growth during the respective decades predicts higher levels of economic development at the end of the decades. However, while federal public investment spending has positive effects on measures of private capital accumulation, it has no direct effect on measures of economic development.     

The Importance of Ownership Arrangements in U.S. Agriculture1

Abstract According to a number of observers of the U.S. economy, large publicly traded corporations can be viewed as a social problem primarily because of their association with the concentration of wealth and power. In agriculture, nine states have laws which restrict or proscribe public corporations from engaging in farming. Also, groups and individuals have attempted to preserve non-corporate production enterprises in agriculture through the establishment of direct markets such as farmers' markets. Proponents of such efforts believe public corporations have negative economic impacts; opponents of such efforts, especially efforts to establish and retain anti-corporate farming laws, argue that corporations can provide economic benefits to rural areas. These debates beg the question of whether ownership and direct marketing arrangements have important influences on economic outcomes such as levels of cash returns from farming and increases in the number of farms realizing cash gains. Using multi-year, county-level data from the Census of Agriculture, this study finds that, even when holding a number of important variables constant, ownership arrangements, as well as the (interaction between the percentage of total sales which are direct sales and the percentage of farms selling directly, are important determinants of both net cash returns and the percentage of farms realizing cash gains.     

FOREIGN INVESTMENT AND TRADE DEPENDENCE

This article explores the relationship between foreign capital investment and trade dependence in less developed economies. Dependency and world system theorists have argued that foreign investment from the advanced capitalist states promotes export and import dependent forms of development. Using cross-national data for 65 less developed nations between 1960 and 1977, the analysis supports this general claim. Total direct foreign investment has a significant positive impact on the measures of export, import and total trade dependence. However, when the total foreign investment measure is disaggregated by sectoral destination (agriculture, manufacturing, petroleum/extraction) only investment in petroleum/extraction has the expected effect on trade dependence. This finding suggests that a large part of the effect of foreign investment may be due to the structuring influence of investment in mineral/extractive forms of production.     

Labor emigration and economic development

"This article is concerned with the extent to which labor migration is advantageous to the labor exporting country. It focuses on development consequences of labor emigration with a view toward the formulation of policies which can shape those consequences into a positive force for development, discussing a wide variety of potential costs and benefits generated by labor emigration. The issue of private versus public choice relative to emigration is examined, as [are] the major economic benefits and costs of labor emigration and the influence of development objectives on the valuation of these costs and benefits. Policies by which emigration countries may increase the benefits from labor emigration and reduce the costs are outlined."     

Social effects of labour migration: the Colombia experience

Colombia has traditionally been classified as a net exporter of manpower. However, the US's restrictions on immigration and the economic crisis in Venezuela, Colombia's sister republic, have affected both the volume and composition of emigration. It could be initially concluded that despite domestic difficulties and external problems, favorable economic prospects explain the present reduced outflow of immigrants. On the basis of a sample survey of applications taken during the last 2 years, 94% of arrivals were classified as professionals and technicians; the remainder were administrative workers. This achievement (which contrasts with high levels of unemployment among Colombian professionals) reflects new technological innovations. It appears that while Colombia exports engineers, it imports engineering. Opinion surveys conducted among employers, migrants, and educational authorities show that costs are not fully compensated by the migrant's improved standard of living in the country of destination, even if he has sent remittances to his country of origin. Investments in education and training yield no returns to the country if the recipient emigrates. The advantages of emigration, identified in the same surveys, include 1) reduction in internal pressure on the labor market, 2) improvement in the incomes of those who do not emigrate, and 3) resolution of economic problems for migrants. The Social Economics Plan implemented by the current government indirectly affects migratory processes by focusing on: 1) eradication of poverty; 2) the National Rehabilitation Plan, by which regional growth is stimulated in poor and economically precarious districts; and 3) the Integral Rural Development Plan which aims to eradicate poverty and improve production and commercialization in small-holding areas. The author concludes that the effects of migration on social structures must be examined in depth.