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2017 | OriginalPaper | Chapter

2. Permanent Migrants and Cross-Border Workers: The Effects on the Host Country

Author : Kenji Kondoh

Published in: The Economics of International Immigration

Publisher: Springer Singapore

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Abstract

When we use the word “migrants,” we tend to disregard the variation in their behavior. We can in fact classify migrants according to length of stay, purpose of migration, geographical origin, or historical background. In this paper, I focus on the time interval of migration and distinguish the three types of migrants: permanent migrants, temporary migrants, and cross-border workers.

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previous chapter Introduction and Summary
next chapter Legal Migration and Illegal Migration: The Effectiveness of Qualitative and Quantitative Restriction Policies
Appendix
Available only for authorised users
Footnotes
1
Migrants repeating their migratory trips are called periodic migrants. The length of each stay in the host country may be several years or several seasons. Those Mexicans who live near the border and come to the United States many times during their lifetime belong in this category. Concerning the place where they spend their income, we may regard periodic migrants as a kind of temporary migrants. See the final section for the analysis of this type of migration.
 
2
Concerning return migration, Mueller (1982) and Bohning (1984) concluded that return migration took place when migrants’ target saving levels were satisfied. Waldorf and Esparza (1991) emphasized the importance of assimilation in the host country and strong ties to the home country. Kau and Sirmans (1977) analyzed the influence of information cost and uncertainty on migration pattern. Chau (1997) emphasized the role of migrant networks in determining patterns of migration. Using a theoretical approach, Hill (1987) analyzed periodic migrants’ behavior, and Djajić and Milboune (1988) analyzed legal temporary migrants’ optimal behavior.
 
3
Various authors have tried to explain certain aspects of a migrant’s behavior (e.g., whether he or she decides to migrate or not, chooses to be a permanent migrant or a temporary migrant). Djajić and Milboune (1988) studied the optimal behavior of a temporary migrant who can endogenously choose his optimal staying period. On the other hand, Djajić (1989) and Bhagwati et al. (1984) studied the “gastarbeiter system” in which the staying period of a migrant is arranged beforehand. Future uncertainty may also affect the behavior of migrants. McCall and McCall (1987), Dustmann (1997), and O’Connell (1997) investigated the role of uncertainty. Finally, Bhagwati and Hamada (1982) paid attention to the role of education.
 
4
Lundahl (1985), Thompson (1984), Rivera-Batiz (1984), and Quibria (1989) analyzed the real income of each factor in the home country. Their results, the counterparts of our Proposition 2.1, items (1) and (2), which apply to the host country, are consistent with our results.
 
5
Some recent papers also studied about remittance of immigrants. Shen et al. (2010) developed a model to study the effects of migration and remittances on inequality in the origin communities. Mandelman and Zlate (2012) used data on border enforcement and macroeconomic indicators from the United States and Mexico to estimate a two-country business cycle model of labor migration and remittances.
 
6
This kind of demand function may be introduced if it is assumed that income earned by native labor and immigrants and income from capital have the same influence on demand.
 
7
Equation 2.6 is valid for equilibrium values of L M and p N .
 
8
Ottaviano and Peri (2012) empirically studied the effects of immigration on wages of US-born workers and concluded it should be positive because positive effects on high-educated workers dominate negative effects on low-educated workers. Dustmann et al. (2013) studied the effects of immigration on the distribution of native wages.
 
9
This follows directly from the magnification effect in Jones (1965).
 
10
To obtain the clear conclusions of this section, I have benefited from the helpful suggestions by anonymous referees of the Journal of Regional Science.
 
11
Assuming that capital owners, native workers, and permanent migrants have identical homothetic preferences
 
12
Wong (1995) studied the welfare effects of international migration by GDP function approach. Detailed information is included in Appendix 2.
 
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Metadata
Title
Permanent Migrants and Cross-Border Workers: The Effects on the Host Country
Author
Kenji Kondoh
Copyright Year
2017
Publisher
Springer Singapore
Book
The Economics of International Immigration

Print ISBN: 978-981-10-0091-1

Electronic ISBN: 978-981-10-0092-8

Copyright Year: 2017

DOI
https://doi.org/10.1007/978-981-10-0092-8_2