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Über dieses Buch

This is the fourth volume in a series of books published for the Egon-Sohmen-Foundation. Like its predecessors, it contains the papers discussed at a symposium. This symposium was held in Vancouver, Canada, thanks to the organizational support of Herbert Grubel, who also gave advice on finding and selecting competent participants. The format was the same as for the pre­ vious conferences that had taken place in Europe-at Laxenburg/ Austria ("Towards a Market Economy in Central and Eastern Europe"), Tegernsee/Bavaria ("Money, Trade, and Competition"), and Linz/ Austria, Egon Sohmen's birthplace ("Economic Pro­ Concems")-and that led to similar gress and Environmental conference volumes published by the Springer-Verlag. The topic "Economic Aspects ofInternational Migration" was chosen because we thought that migration from East to West would soon become an issue in Europe, that its implications should be discussed in a sober manner publicly as well as among experts, and that a conference volume on its economic implica­ tions and on the well-researched experience of immigration coun­ tries like the U.S.A. and Canada would be the best contribution the Egon-Sohmen-Foundation could make in this field. It is also remarkable in this context that Egon Sohmen was a migrant of sorts, just as some of those who shared responsibility for this conference. The late Egon Sohmen, in whose memory his brother Helmut established the foundation, was born in Austria (in 1930), received his education in Germany (University ofTiibingen) and the U.S.A.



General Aspects of Migration


International Migration and World Development: A Historical Perspective

Like other countries of recent settlement, the United States has always been a country of immigrants, and that fact has been a source of debate for at least a century. Two questions have always been central to the debate. What are the economic effects on the migrants themselves and on the indigenous populations of both the sending and receiving regions? Should international migrations be regulated and, if so, how?
Timothy J. Hatton, Jeffery G. Williamson

Patterns of Labor Migration when Workers Differ in Their Skills and Information Is Asymmetric

One of the least satisfactory features of modern labor migration theories is their capacity to predict only a small subset of empirical regularities. Since a large number of migration-related phenomena must be causally related, the challenge to students of migration is to develop a body of theory that predicts a corpus of stylized facts rather than provide an ad hoc analytical rationale for an isolated observation. It is the purpose of this paper to outline an implementation of the theory of labor migration under asymmetric information that offers a rich and integrated set of predictions.
Oded Stark

The Economics of International Labor and Capital Flows

This paper presents the standard economic analysis of the effects of labor migration on output and income distribution, and expands it by considering the implications of accompanying flows of financial, human, and knowledge capital.1 This extension of the basic model of labor migration is of potentially growing interest, as changes in immigration laws of some countries in recent times have shifted towards favoring highly skilled individuals and entrepreneurs owning large quantities of financial capital.2
Herbert G. Grubel

Experiences in the United States


The Performance of Immigrants in the United States Labor Market

The labor market adaptation or performance of immigrants is of concern to policymakers for several reasons. Immigrant adjustment determines, in part, their income, and hence their economic well-being level of poverty, receipt of public transfers, and tax payments, among other variables of policy relevance (see, for example, Blau, 1984; Simon, 1989). Their adjustment also determines the level of skill they supply to the destination labor market, and this, of course, has implications for the relative supply of factors of production, and hence on relative factor prices and the impact of immigrants on the macroeconomy (see, for example, Chiswick, Chiswick, and Karras, 1992). Furthermore, the labor market performance of immigrants in the destination is an important determinant of the supply of immigrants; immigration responds positively to higher wage rates and greater employment opportunities in a destination (see, for example, Jerome, 1926; Sjaastad, 1962; Schwartz, 1976; Greenwood and McDowell, 1982).
Barry R. Chiswick

Immigration and Entrepreneurship in the Nineteenth-Century U.S.

The immigrant entrepreneur is ubiquitous in the U.S. of the 1990s. Whether they are Korean grocery store owners in the inner cities, Greek restaurateurs in the suburbs, or Taiwanese computer wizards in Silicon Valley, immigrants and their businesses are now such integral parts of life in some places that it is hard to imagine a world without them. Though only a handful have enjoyed the success of a Subramonian Shankar, a majority of Americans view immigrants as hard-working, enterprising additions to the U.S. economy(Business Week, 1992, p. 119).
Joseph P. Ferrie, Joel Mokyr

Immigration, Ethnic Identity, and Assimilation: The Intergenerational Transmission of Immigrant Skills

The traditional perception of how immigrants and their ethnic offspring adjust to the United States is vividly depicted by the melting pot metaphor: over the course of two or three generations, immigrants are transformed from a collection of diverse national origin groups into a homogeneous native population. Beginning with Glazer and Moynihan (1963), modern sociological research argues that this metaphor does not correctly portray the ethnic experience in the United States. These studies instead suggest that many of the cultural and economic differences among immigrant groups are transmitted to their children, so that the heterogeneity found among today’s immigrants becomes the heterogeneity found among tomorrow’s ethnic groups.
George J. Borjas

The National Labor Market Consequences of U.S. Immigration

Since the imposition of restrictive entry quotas in the early 1920s, U.S. immigration issues have generally been of little concern to economists. First binding quotas, and later the effects of the depression and World War II, resulted in sharply reduced immigration compared with levels of the late nineteenth and early twentieth centuries. When, during the 1950s, immigration again began to rise toward quota ceilings, population was growing rapidly from other sources, and thus immigration continued to contribute relatively little to U.S. population growth. Moreover, during this period mortality among the aging stock of foreign-born more than offset net immigration, with the consequence that the stock declined by 4.6 million between 1930 and 1970. What attention was directed at international migration issues during this half century was mainly on the part of economic historians, who focused on the period of unrestricted flows, and on the part of those interested in the brain drain, who were concerned with the flow of high-level manpower from poor to rich countries.
Michael J. Greenwood, John M. McDowell

Lessons for Europe


Can Immigration Policy Help to Stabilize Social Security Systems?

One of the distinguishing features of most European countries is the importance of social security. Security in all its aspects seems to be relatively more appreciated than in other parts of the world. This is at least the conclusion one has to come to when looking at the size of social security budgets in Europe. It is typical that social security is not part of a federal or local budget but is organized in special funds that can vary their contribution rates without the decision of a parliament.
Bernhard Felderer

On the Economic Consequences of Immigration: Lessons for Immigration Policies

The task assigned by Herbert Giersch to this paper is to discuss policy decisions about immigration into the North American and Northern European countries. To that end it draws on those ideas from my 1989 book, The Economic Consequences of Immigration, which are especially relevant to the topic. Supporting data for the propositions may be found in that book.1 In addition, some new tentative findings about tax-and-transfer policies are presented below.
Julian L. Simon

Some General Lessons for Europe’s Migration Problem

There are two dominant demographic factors that will determine the availability of human resources in Europe at the dawn of the 21st century: First, there is an overall picture of slowing population growth and persistent below-replacement fertility rates. At the turn ofthe century, this may create a vacuum on the European Community’s (EC) labor markets and hence population demandpull. Second, the intra-EC deregulation policies on the internal labor market and their effect on intra-EC labor migration will be dominated by substantial migration pressure caused by people from the East and the South of Europe, as well as from developing countries. There will be requests from many non-EC European countries either to be allowed to join the EC (probably with free labor mobility) or, at least, to allow their people to migrate to the center of Europe. Hence, there will be population supply-push.
Klaus F. Zimmermann


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