The Economics of Immigration Cynthia Bansak, Nicole B. Simpson and Madeline Zavodnv Routledge R Taylor & Francis Group LONDON AND NEW YORK
Contents List offigures List of tahles List ofboxes Preface x xiii xv xvi PARTI Trends in Immigration 1 1 Why Study the Economics of Immigration? 3 7ypes of immigrants 5 Immigration is controversial 7 Immigration versus international trade 7 Immigration policy 8 Economics of immigration terminology 9 A hasic model of immigration 11 A global overriew crfimmigration 13 An overriew of U. S. immigration 15 The rest of this book 16 What this book does not corer 17 Appendix 20 2 Why People Become Immigrants 24 Where are immigrantsfrom? 24 Push and pullfactors 25 The role of immigration policy 28 Migration costs 30 Immigration paradigms 32 The migration decision 33 The grarity model of migration 40 Empirical evidence 41
vi Contents 3 Where Immigrants Go and For How Long Immigrant destinations 50 Immigration to poor countnes 56 Differences across types of immigrants 56 Immigrant destinations within countries 62 Weifare magnets? 66 Return and repeat migration 68 PART 2 Immigrant Selection and Assimilation 4 Selection in Immigration The Roj model 80 Measuring income inequality and the return to skill 86 Selection on health 95 Selection in return migration 96 Final thoughts on selection 100 Appendix 103 5 Assimilation Labor market assimilation 104 Participation in public assistance programs 115 Location choice and enclaves 116 Education 118 Language 119 Marriage and fertility 120 Health 122 Naturalization 123 Final thoughts on assimilation 125 6 The Second Generation Measuring intergenerational mobility 131 Intergenerational mobility among immigrants in the labor market 133 Issues in measuring intergenerational mobility among immigrants 138 Intergenerational mobility in education 139 Language proficiency 142 Marriage and fertility 143 Ethnic identity 144 Final thoughts on the second generation 146
PART 3 Labor Market Effects of Immigration 7 Labor Market Effects of Immigration: theory Immigration model 154 Immigration model with costs 156 Upward-sloping labor supply when immigrants and natives are perject Substitutes 158 Labor demand 159 Upward-sloping labor supply when immigrants and natives are complements 160 Unskilled and skilled labor 161 Elasticity of Substitution between dijferent types of workers 164 Physical capital 165 Open versus closed economy 166 Final thoughts on the empirical labor market effects 168 Appendix 169 8 Labor Market Effects of Immigration: evidence Brief review of theory 175 Empirical approaches 175 Other Channels of labor market adjustment 185 Effects on previous immigrants 188 Concluding thoughts 188 PART 4 Other Effects of Immigration 9 Effects on Other Markets in the Destination Housing 195 Prices of goods and services 198 Product diversity 199 International trade 201 Financial markets 202 Physical capital Investment 203 Technology and Innovation 204 Income 205 lncome inequality 206 Growth accounting 207 Final thoughts 210 Appendix 213
viii Contents 10 Fiscal Effects Measuring the fiscal impact 215 Estimates of the fiscal impact of Immigration 220 U.S. immigrants'participation in government-funded programs 221 Final thoughts on fiscal ejfects 232 11 Effects on Source Countries Labor market consequences of emigrationfor the source country 238 Emigration and human capital: brain drain or brain gain? 239 Remittances 245 Eridence on the impact of remittances 249 Impacts on political, economic and social institutions 251 Final thoughts on source countries 253 PARTS Frontiers in Immigration Research 12 Frontiers in the Economics of Immigration Happiness 261 Education 264 Health 266 Fertility 261 Crime 268 Human trafficking 212 Final thoughts onfrontiers 215 PART 6 Immigration Policy 13 U.S. Immigration Policy The evolution ofu.s. Immigration policy 283 Current Immigration policy 289 Final thoughts on U.S. Immigration policy 298 14 Immigration Policy around the World Brief recap of U.S. immigration policy 302 foint-based systems 303 European Union 309 Guest worker programs 313
Rtfugee policies 318 Legalization policies 323 Policies regarding immigrants öfter arrival 324 Final thoughts 325 Contents Index