Immigration Policy, Internal Migration and Natural Resource Shocks

A report by Michel Beine, ([michelbeine.be], University of Luxembourg), Robin Boadway, ([queensu.ca], Queen's University, Canada), and Serge Coulombe ([uottawa.ca], University of Ottawa, Canada) for the C.D. Howe institute [cdhowe.org] in Canada,

Moving Parts: Immigration Policy, Internal Migration and Natural Resource Shocks

Recent changes to Canadian immigration policy, including the Temporary Foreign Worker (TFW) Program, are positive overall, but they could have negative consequences that need addressing, according to a new C.D. Howe Institute report. In “Moving Parts: Immigration Policy, Internal Migration and Natural Resource Shocks,” authors Michel Beine, Robin W. Boadway and Serge Coulombe note that changes to the TFW Program have limited the kinds of workers companies can bring in, made the applications more rigorous, and set an employer-specific cap on the use of TFWs.

Report available here [cdhowe.org], and is partly based on earlier research by the two of the authors and yours truly on the effect of migration and resources in Canada, published recently in Economic Journal (here, [wiley.com])

New Research: Resource Shocks and Human Capital Stocks - Brain Drain or Brain Gain?

A new research paper from Daniel Steinberg (uni-tuebingen.de), University of Tübingen,

Resource Shocks and Human Capital Stocks - Brain Drain or Brain Gain?

Abstract:

Based on the paradox of plenty, resource abundant countries tend to be vulnerable for lower economic prosperity along with instable political institutions as well as corruption. This paper sheds light on the relationship between resource abundance and the selectivity of migration. First, we combine a Dutch-Disease-Model with a Roy-Borjas-Model in order to elaborate on the relationship between resource shocks and migrant selectivity theoretically. Thereby, we predict that resource booms give rise to brain drain effects which are mediated through income inequality effects. Second, we provide empirical evidence for the effect of resource shocks on migrant selectivity based on a structural equation model in order to disentangle effects on income inequality and migrant selectivity. Our results show that resource shocks, especially oil booms, strengthen brain drain effects in a sample with 113 countries between 1910-2009.

Available here [ehes.org]

New OxCARRE research. New discussion papers from January

January has seen some new discussion papers submitted to the OxCARRE website.

Intergenerational Inequality Aversion, Growth and the Role of Damages: Occam's rule for the global carbon tax by Armon Rezai & Rick van der Ploeg


The Relationship Between Oil Price and Costs in the Oil and Gas Industry by Gerhard Toews & Alexander Naumov


News Shocks in Open Economies: Evidence from Giant Oil Discoveries by Rabah Arezki, Valerie A Ramey & Liugang Sheng


Seven Principles for Managing Resource Wealth by Sam Wills.


and finally a forthcoming paper

Dutch Disease and the Mitigation Effect of Migration: Evidence from Canadian Provinces, by Michel Beine, Serge Coulombe & Wessel Vermeulen