Migration and Development in the Mediterranean

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Questions and Answers

What is the primary reason cited by migrants for emigration from their home countries?

Lack of economic opportunity (correct)

Desire for a different culture

Environmental changes

Political instability

How does rising income affect migration according to the paradox discussed?

It has no effect on migration patterns.

It eliminates the need for migration.

It allows more individuals to afford migration. (correct)

It decreases overall migration rates.

What are the potential consequences of positive self-selection of migrants?

Loss of investment in education in sending countries. (correct)

Securing appropriate placements in the job market.

Increase in available jobs in destination countries.

Increased human capital in destination countries.

What concept describes the critical asset threshold that prevents households from improving their economic situation?

Poverty trap Signup and view all the answers

Which tax theory questions the amount and benefits of taxing migrants for their home country?

Pigouvian tax Signup and view all the answers

What factor is key in shaping favorable attitudes towards immigration in wealthier destination countries?

Wealth and education level Signup and view all the answers

What assumption in the Lewis model relates to the availability of labor for economic development?

Infinite availability of labor Signup and view all the answers

How do excessive regulations and minimum wage in the formal sector affect the informal sector?

They feed the informal sector Signup and view all the answers

What condition is necessary for the flow of immigrants to exceed the demand for immigrant workers?

Porous borders due to geographic factors Signup and view all the answers

Which statement best describes the relationship between formal and informal sectors?

Higher minimum wages in the formal sector lower the equilibrium wage in the informal sector Signup and view all the answers

What happens to the demand for labor in the informal sector when wages in the formal sector increase?

Demand for labor in the informal sector increases Signup and view all the answers

What is the nature of the subsistence sector in the Lewis model?

Characterized by family-based organization Signup and view all the answers

What drives the structural transformation in economies according to the Lewis model?

Availability of capital and natural resources Signup and view all the answers

What is the estimated poverty threshold identified in the analysis?

$244 Signup and view all the answers

What experiment was conducted to assess the long-term effects of an environmental shock in Central America?

Hurricane Mitch Signup and view all the answers

What approach discusses the trade-off between preserving assets or selling them for basic needs?

Asset-based approach Signup and view all the answers

In the given empirical framework, what does variable 'Y' represent?

Per adult-equivalent household food consumption Signup and view all the answers

What critical aspect is used to determine the effects on current consumption growth?

Household past consumption level Signup and view all the answers

What was a significant vulnerability factor for households in Tanzania discussed in the analysis?

Rising temperatures Signup and view all the answers

Which climatic phenomenon has recurrently affected agricultural outputs in Ethiopia since the 1980s?

Droughts Signup and view all the answers

How do higher previous consumption households typically respond to climate shocks compared to lower consumption households?

They have a positive or neutral marginal effect. Signup and view all the answers

What is the expected effect of immigration on the production possibilities frontier (PPF)?

It shifts outward, increasing output. Signup and view all the answers

How does immigration specifically affect the allocation of labor in different industries?

Labor is allocated to the labor-intensive industry, such as shoes. Signup and view all the answers

What happens to the K/L ratio across industries upon an increase in labor due to immigration?

The K/L ratios remain unchanged. Signup and view all the answers

What is a potential concern for local workers regarding immigration?

An increase in political influence among migrants. Signup and view all the answers

What effect does immigration have on capital and land rentals in a local economy?

Rentals on capital and land both increase. Signup and view all the answers

What is the primary consequence of a shift from equilibrium point A to point B on the PPF due to immigration?

The output of both industries increases. Signup and view all the answers

What might landowners and entrepreneurs support concerning immigration?

Open borders to allow for a larger potential labor force. Signup and view all the answers

In the Heckshcher-Olin model, how is the total amount of capital in an economy represented?

Total capital is the sum of capital used in all available industries. Signup and view all the answers

How does immigration affect the output of labour-intensive and capital-intensive industries according to the Rybczynski theorem?

Output in labour-intensive industry increases while capital-intensive output decreases. Signup and view all the answers

In the Specific-Factors Model, what results from the increase of foreign workers with a wage lower than the home wage?

An increase in the amount of labour used in agriculture. Signup and view all the answers

What is the predicted effect on wages in the home country due to the influx of foreign workers according to the Specific-Factors Model?

Wages will decrease as a result of diminished marginal productivity. Signup and view all the answers

What assumption does the representation of foreign-born workers in the U.S. workforce challenge?

The assumption of a homogeneous workforce. Signup and view all the answers

According to the data on foreign-born workers in the US, which group experiences the greatest impact from immigration?

Workers without a high school degree and those with PhDs. Signup and view all the answers

What does the value of the marginal product of labour (W) depend on in the context of the Specific-Factors Model?

The price of manufactured goods and the marginal productivity of labour in manufacturing. Signup and view all the answers

What will happen to the marginal product of labour (MPL) as more labour is added to the industries according to the principle of diminishing returns?

MPL will decrease as more labour is added to each industry. Signup and view all the answers

What is a characteristic of the labour market described in the context of immigration to the US?

Different educational levels among immigrants lead to varied competition effects. Signup and view all the answers

What primarily drives wages in the subsistence sector to subsistence levels?

Low workers' productivity Signup and view all the answers

Which factor is most responsible for the underdevelopment of Less Developed Countries (LDCs) according to Lewis?

Insufficient capitalist sector accumulation Signup and view all the answers

What does the Harris-Todaro Paradox primarily explain?

Reasons for rural-to-urban migration amidst high urban unemployment Signup and view all the answers

What is a crucial variable determining migration rates according to the discussed model?

Urban employment rate Signup and view all the answers

How do remittances influence families in low-income countries?

They stabilize consumption levels and promote investments Signup and view all the answers

Which of the following describes the hidden unemployment phenomenon in family enterprises?

Families pooling resources and sharing product outputs Signup and view all the answers

What outcome could result from urban labor market failures as indicated by the Harris-Todaro Paradox?

Excess migration leading to informal economies Signup and view all the answers

Which factor does not contribute to the capitalist sector's absorption of labor?

Low urban employment standards Signup and view all the answers

What is one of the challenges faced in empirical analysis of migration?

Endogenous migration decisions Signup and view all the answers

Which concept is essential to understanding migration as risk mitigation?

Informal networks for risk diversification Signup and view all the answers

Study Notes

Definitions

International Migrant: A person who changes their country of residence (UN).
Economic Migrant: A person employed in a foreign country other than their country of birth/citizenship (60%).
Migrant (OIM): A person who has moved across an international border or within a state, away from their usual place of residence, regardless of legal status, reasons for movement, or length of stay.
Forcibly Displaced Person (FDP): Forced to leave their residence due to conflicts, violence, or natural disasters.
Internally Displaced Persons (IDPs): Have not crossed borders
Refugee: Outside of their country of nationality due to fear of persecution based on religion, nationality, social or political group; unwilling to return to their home country.
Asylum Seeker: In the process of acquiring refugee status.
Disparities: Differences in experiences and outcomes related to migrant categories.
Vulnerable Migrants: Unaccompanied children, smuggled persons, victims of trafficking.
Irregular/Undocumented Migrants: Entered and work in violation of labor laws.
Temporary Migration: Intention is to return or move to another country.
Circular Migration: Repeated migration between two or more countries.
Transit Migration: Temporary stay in a country not the final destination.
Migrant Classification:
Short-term migrant: Change of residence for 3 months to 1 year.
Long-term migrant: Change of residence for more than 1 year.

Disparities in Migrant Categories

World Bank categorizes vulnerable migrants;
Refugees/IDPs and integration disparities in EU (due to institutions, norms, and practices) are noted.
Green card holders: statistics/policy differences exist
Second-generation migrants: those whose parents migrated.

Key Figures and Facts

Global international migrant population = 281 million in 2020.
1970: 84 million (2.3% of global population)
2020: 281 million (3.6% of global population)
2022: 117 million FDP (35 million refugees, 5.4 million asylum seekers, 71 million IDPs).

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