LABOR MARKET OPENNESS,H‐1B VISA POLICY,AND THE SCALE OF INTERNATIONAL STUDENT ENROLLMENT IN THE UNITED STATES

International students have long comprised an important part of U.S. higher education. However, little is known regarding the factors that encourage students from across the world to enroll in U.S. colleges and universities each year. This paper examines the relationship between international enrollment and the openness of the United States' skilled labor market, currently regulated by the H‐1B program. Gravity regressions reveal that H‐1B visa issuances to a country are positively and significantly related to the number of international students from that country. Causal estimates of the impact of labor market openness are achieved by exploiting a dramatic fall in the H‐1B visa cap in October 2003. Triple difference estimates show that the fall in the cap lowered foreign enrollment by 10%. (JEL F22, I21, J11)     

The Sonoran Desert’s Domestic Bracero Programme: Institutional Actors and the Creation of Labour Migration Streams

This paper traces the journeys of male migrants to Empalme, Sonora, Mexico to uncover the development of the often overlooked domestic bracero programme that operated in conjunction with its well‐known international equivalent. Drawing on interviews and observations with ex‐braceros who met at a park near the Mexico‐US border, I examine their experiences and participation in Mexico’s domestic bracero program, an unintended and unexplored consequence of its international counterpart. The study shows how regulation and control were constantly reinvented at every step of the selection process by state actors and their affiliates in Mexico. The paper reveals how the oversupply of labour and modernization of agriculture in Sonora resulted in the development of a migration industry where local municipal leaders, coyotes, the state, and Mexican agribusiness capitalized from men’s displacement. The migration industry during the bracero selection process controlled who gained access to the United States labour market by capturing migrant labour en route to the United States in the process fueling a thriving cotton industry in the otherwise stagnant Sonoran Desert economy. The study concludes by taking the lessons from the historic domestic bracero programme to show one instance in which internal and international labour markets were closely interwoven. In the end, I call for more research that examines the relationship between markets on both sides of the border that uncovers how networks are not only structured by personal ties but also by state and market relations.     

Compositional and Temporal Dynamics of International Migration in the EU/EFTA: A New Metric for Assessing Countries’ Immigration and Integration Policies

In this article, I derive estimates of migrants’ expected years of residence in each of 31 countries in the European Union and European Free Trade Association each year from 2002 to 2007. A country‐level measure summarizing the temporal dynamics of international migration, I compare my results against the often used compositional measure of the percent foreign born, and show that these two measures reflect different population processes. I likewise demonstrate the utility of the measure derived here as a tool to assess countries’ integration policies on long‐term residence per their scores in the Migrant Integration Policy Index. Key theoretical and policy implications are discussed.     

HIERARCHICAL TRADE

Commodity trading is typically organized hierarchically: Large‐scale trade takes place at the global price system while individuals trade at local price systems within their countries. Agencies or trading houses establish the link between these different market places. In this paper, we devise a framework to study this type of hierarchical trade. We identify the free trade and the autarky equilibrium as polar cases. We show that no other two‐stage market equilibria exist if the commodity space is two‐dimensional. An example demonstrates that other, so‐called intermediate equilibria exist for three‐dimensional commodity spaces. We then provide an explicit construction of special classes of intermediate equilibria. Moreover, we study the consequences when some countries control the agency that organizes trade at the global level and we analyze the role of international goods arbitrage. Finally, we show that profit‐maximizing agencies may not promote free trade outcomes. (JEL D43, D50, F10)     

INTERNATIONAL DEAL EXPERIENCE AND CROSS‐BORDER ACQUISITIONS

I show that corporate directors' human capital facilitates international investments. Directors' experience with cross‐border transactions positively influences firms' decisions to conduct their first cross‐border acquisitions. Cross‐border acquirers are more likely to buy firms headquartered in countries with which the directors have prior deal experience. This effect is strongest for target firms headquartered in culturally and institutionally dissimilar countries. Announced cross‐border acquisitions are received more favorably by financial markets and are more likely to be completed successfully when the announcing firm has a director with cross‐border acquisition experience. These effects are not driven by investment bank involvement in the deal process or by other forms of directors' human capital, and they are robust to endogeneity of director hires. (JEL F23, F21, J24, L23)     

INTERNATIONAL AGREEMENTS ON PRODUCT STANDARDS UNDER CONSUMPTION EXTERNALITIES: NATIONAL TREATMENT VERSUS MUTUAL RECOGNITION

This paper provides a comparative analysis of product standards agreements between heterogeneous countries. A simple model of vertical standards is developed where countries have heterogeneous preferences for a negative or positive consumption externality. I compare two major types of standards agreements, those based on national treatment (NT) and mutual recognition (MR). Unlike NT, MR can induce a mismatch of standards between countries, a problem that tends to get worse as country preferences diverge. Due to this mismatch problem, NT tends to become relatively more welfare‐enhancing than MR for countries with more dissimilar preferences. These findings explain why the World Trade Organization, the Trans‐Pacific Partnership, and the European Union choose different types of standards agreements. The paper also sheds new light on the desirability of international harmonization of product standards. (JEL F13, F18, O24)     

The International Migration of Nurses in Long-Term Care

This article describes five major factors that are affecting patterns of international migration among nurses who work in long-term care settings:

• Demographic drivers–The aging of the populations in developed countries and the low to negative growth in the working-age population will increase the demand for international workers to provide long-term care services.

• Gender and race–A dual labor market of long-term care workers, increasingly made up of women of color, is becoming internationalized by the employment of migrating nurses from developing countries.

• Credentialing–The process of credentialing skilled workers creates barriers to entry for migrating nurses and leads to “decredentialing” where registered nurses work as licensed practical nurses or aides.

• Colonial history and geography–The colonial histories of many European countries and the United States have increased migration from former colonies in developing countries to former colonial powers.

• Worker recruitment–Efforts to limit the recruitment of health care workers from some developing countries have had little effect on migration, in part because much of the recruitment comes through informal channels of family and friends.

     

GRAVITY REDUX: MEASURING INTERNATIONAL TRADE COSTS WITH PANEL DATA

Barriers to international trade are known to be large but because of data limitations it is hard to measure them directly for a large number of countries over many years. To address this problem, I derive a micro‐founded measure of bilateral trade costs that indirectly infers trade frictions from observable trade data. I show that this trade cost measure is consistent with a broad range of leading trade theories including Ricardian and heterogeneous firms models. In an application I show that U.S. trade costs with major trading partners declined on average by about 40 between 1970 and 2000, with Mexico and Canada experiencing the biggest reductions. (JEL F10, F15)     

YOUNG “STARS” IN ECONOMICS: WHAT THEY DO AND WHERE THEY GO

We construct a data set of job flyouts for junior economists between 2013 and 2018 to investigate three aspects of the market for “stars.” First, what is the background of students who become stars? Second, what type of research does the top of the market demand? Third, where do these students take jobs? Among other results, we show that stars are more likely to be international and male than PhDs overall, that theoretical and semi‐theoretical approaches remain dominant, that American programs both produce the most stars and hire even more, that almost none are hired by the private sector, and that there is a strong shift toward having pre‐PhD full‐time academic research jobs. (JEL A11, A12, A23, J24)     

Ideological Orientation and the PRC Academic Migration: A Theoretical and Longitudinal Analysis*

Since the end of the Cold War era, Western capitalist countries have experienced increased immigration of highly trained professionals from former socialist Eastern European countries and from socialist countries such as China and Cuba. In studies of the determinants of international migration, the focus has repeatedly been on demographic, economic, social network, and political explanations. This study addresses the migration of highly trained professionals from the People's Republic of China (PRC) to the United States of America (USA). Logistic regression analyses of longitudinal data collected between mid‐1988 and the beginning of 1992 show that, in addition to the explanatory power of the above predictors, transvaluation—the shift emphases from the socialist collectivist and interdependent ideological orientations to individualistic, independent, and competitive ideological orientations contribute to the migration decisions of the Chinese intellectuals. The results of field interviews and longitudinal comparisons suggest that the academics who come from an oppressed bourgeois‐class origin, and who experience more independent and competitive lifestyles in China, are more likely to acquire individualistic and independent ideologies than those who come from privileged and working‐class origins in China. The transvaluation is thus argued as a determinant of international migration, rather than as the post facto justification or the assimilation effect that was argued in previous migration studies. The modest erosion of the socialist‐collectivist and interdependent orientations among Chinese academics in the 1988 to 1992 three‐and‐half‐year time frame further enhanced their migration decisions. The longitudinal analyses suggest that the modifications of the individual ideological orientations among the Chinese academics may have occurred before the migration movement, rather than after. This finding thus challenges previous research regarding the determinants of international migration.     

The transnational effect of multicultural policies on migrants' identification: the case of the Israeli diaspora in the USA

While it is difficult to gauge the effect of multicultural policies within countries, it is even more difficult to measure them across countries. In this article, I use fundamental multicultural changes that have occurred in Israeli society in recent decades as a case study, and track their effect on how Israelis who reside in the USA identify with Israel. Analysing the US census and the American Community Survey, I have focused my research on three groups of Israeli‐born migrants in the USA – Israeli Arabs, ultra‐Orthodox Jews and the Jewish majority. Findings indicate that originating from a minority community in the homeland predicts not only a different rate, but also different longitudinal trends of Israeli identification. I offer several possible explanations for these variations, but an in‐depth analysis of the Israeli case indicates that the transnational effect of the changing multicultural agenda in Israel is the leading mechanism at play.     

The Sociology of Unequal Exchange in Ecological Context: A Panel Study of Lower‐Income Countries, 1975–20001

The structural theory of ecologically unequal exchange posits that through the vertical flow of exports from lower‐income countries, the stratified world economy enables higher‐income countries to misappropriate global environmental space. Tied to their unsustainable consumption levels, this misappropriation by higher‐income countries leads to the suppression of resource consumption in lower‐income countries, well below globally sustainable thresholds, which negatively impacts the well‐being of domestic populations. To evaluate key aspects of the theory, I test the hypothesis that lower‐income countries with elevated levels of exports sent to higher‐income countries exhibit lower consumption‐based environmental demand, measured as per‐capita ecological footprints. Findings for generalized least squares panel regression analyses of 66 lower‐income countries from 1975 to 2000 confirm the hypothesis, providing support for the theory. Additional results indicate that the strength of the hypothesized relationship increased in magnitude during the 25‐year period. These findings hold, net of the effects of economic development, ecological conditions, and other structural factors.     

DISENTANGLING DEMAND‐ENHANCING AND TRADE‐COST EFFECTS OF MAXIMUM RESIDUE REGULATIONS

Maximum residue level (MRL) regulations in plant products can create unnecessary trade barriers on one hand and enhance demand via risk mitigation or quality assurance on the other. We stipulate a generalized gravity equation model to disentangle the effects of MRLs on the import demand and foreign exporters' supply. Applying the framework to the MRLs on pesticides imposed by high‐income Organization for Economic Co‐operation and Development countries, we find that the MRLs jointly enhance the import demand and hinder foreign exporters' supply. In addition, exporters from the less and least developed countries are more constrained by the MRLs than their competitors from the developed world. (JEL F14, Q17)     

Demand Constraints on Agricultural Growth in East and Southern Africa: A General Equilibrium Analysis

This article analyses demand constraints on agricultural growth in seven countries of East and Southern Africa using an applied general equilibrium framework. It finds that both traditional and non‐traditional export crops have limited potential to raise incomes because of demand constraints (for traditional exports) or a relatively small base (for non‐traditional exports). The best prospects for agriculture‐led growth remain in the food sector, where domestic demand represents a large and growing market. Improvements in market efficiency and simultaneous growth in the livestock sectors can help spur demand further and avert falls in prices. Achieving rapid gains in farm incomes, however, also requires investment in rural infrastructure to reduce marketing costs, and demand‐ enhancing growth in the non‐agricultural sector to spur demand.     

INFORMATION VALUE UNDER DEMAND UNCERTAINTY AND ENDOGENOUS MARKET LEADERSHIP

In an oligopoly model with firms choosing to produce in one of two periods, we identify the circumstance under which a firm's having early information regarding stochastic demand results in market leadership. High demand volatility leads to Stackelberg competition with the information‐advantaged firm leading. In the N‐firm case an equilibrium with multiple leaders and multiple followers emerges endogenously. In a duopoly information acquisition game we identify conditions that determine whether neither, one, or both firms will pay to acquire early information and note that one firm's obtaining early information may generate a positive externality benefitting its competitor. Both symmetric and asymmetric outcomes are possible and Stackelberg market leadership may occur in equilibrium, but only when firms have different costs of information. Our finding that an information advantage may convey leadership which then affects the value of information to the players applies to other settings exhibiting first‐mover advantage such as certain public good provision games. (JEL C72, D82, L13)     

TRANSITION OF INTERNATIONAL SCIENCE,TECHNOLOGY, ENGINEERING,AND MATHEMATICS STUDENTS TO THE U.S. LABOR MARKET: THE ROLE OF VISA POLICY

I analyze how visa policies affect international students' transition to the U.S. labor market. The Optional Practical Training (OPT) program permits international students to work via a student visa for a limited period after graduation before obtaining a work visa—an uncertain process due to the binding visa cap. I find that the extension in the length of OPT terms for students in science, technology, engineering, and mathematics (STEM) increases their likelihood of initially staying in the United States and using OPT. This result suggests that uncertainties about obtaining work visas hinder international STEM students' participation in the U.S. labor market. (JEL J61, K37, I23).     

ARBITRAGE ACROSS BORDERS: WHY ITUNES GIFT CARDS SELL ABOVE FACE VALUE ON EBAY

This paper is one of the first to explore international price differences and arbitrage opportunities in the market for downloadable content, by linking the sale of iTunes gift cards above face value on eBay to the arbitrage of iTunes' products (which include downloadable music and videos). This paper shows that iTunes gift cards targeted to non‐U.S. buyers tend to sell for higher prices, controlling for seller reputation, shipping costs, and other variables. Information about the buyers' countries allows us to see whether it is the U.S. store's greater product availability or its lower prices that buyers are interested in. (JEL D40, L10, F10)     

FINANCIAL CONTAGION ON THE INTERNATIONAL TRADE NETWORK

We combine data on international trade linkages with a network approach to map the global trading system as an interdependent complex network. This enables us to obtain indicators of how well connected a country is into the global trading system. We use these network‐based measures of connectedness to explain stock market returns during recent episodes of financial crisis. We find that a crisis is amplified if the epicenter country is better integrated into the trade network. However, target countries affected by such a shock are in turn better able to dissipate the impact if they are well integrated into the network. A network approach can help explain why the Mexican, Asian, and Russian financial crises were highly contagious, while the crises that originated in Venezuela and Argentina did not have such a virulent effect. We suggest that a network approach incorporating the cascading and diffusion of interdependent ripples when a shock hits a specific part of the global trade network provides us with an improved explanation of financial contagion. (JEL F10, F36, F40, G15)     

SQUEALER DEALERS: THE MARKET FOR INFORMATION IN FEDERAL DRUG TRAFFICKING PROSECUTIONS

Federal data on drug trafficking sentences are used to determine factors that affect market quantities of providing information against other defendants (i.e., defendant probabilities of receiving testimony‐related sentence reductions) and market prices of information (i.e., the sizes of such sentence reductions). Women and better‐educated defendants experience high demand (higher quantities and prices) for information. Blacks, Hispanics, and non‐U.S. citizens experience low demand. Defendants expecting longer sentences have higher supply of information. Conditional on expected sentence, crack dealers, high‐level dealers, and dealers with long criminal histories experience low demand, while low‐level dealers experience high demand. Women of all races experience high demand for information. (JEL K14, J15, J16)     

PEER EFFECTS IN HIGHER EDUCATION: DOES THE FIELD OF STUDY MATTER?

Does the peer effect vary with the field of study? Using data from a middle‐sized public university located in southern Italy and exploiting the random assignment of first‐year students to college accommodation, we find that roommate peer effects for freshmen enrolled in the hard sciences are positive and significantly larger than for freshmen enrolled in the humanities and social sciences. We present a simple theoretical model which suggests that the uncovered differences between fields in the size of the peer effect could plausibly be generated by between‐field variation in labor market returns, which affect optimal student effort. (JEL I21, Z13, J24)