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Nonmarket networks among migrants

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  • Yamauchi, Futoshi
  • Tanabe, Sakiko

Abstract

"This paper examines nonmarket interactions among migrants from same origins in the urban labor market of Bangkok, Thailand. We test whether the labor-market performance of previous migrants has externalities to that of new migrants who moved from the same province of origin. Our empirical results, which control origin fixed effects, time-fixed effects, and origin/year-specific correlated shocks, show that (1) the relative size of the migrant population in the market decreases employment probabilities of new migrants (negative substitution effect), (2) the employment probability of previous migrants increases those of new migrants (positive externalities), and (3) when the employment probability of previous migrants approaches to unity, the size effect becomes positive, showing informational scale economies. The results imply that the positive informational scale effect dominates the negative substitution effect when the efficiency of previous migrants is sufficiently high in the labor market." Authors' Abstract

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND briefs with number 169.

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Date of creation: 2003
Date of revision:
Handle: RePEc:fpr:fcndbr:169

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Keywords: networks ; nonmarket interactions ; migrants ; employment ;

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References

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  1. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
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  5. repec:att:wimass:9127 is not listed on IDEAS
  6. Yamauchi, Futoshi, 2004. "Are experience and schooling complementary? Evidence from migrants' assimilation in the Bangkok labor market," Journal of Development Economics, Elsevier, vol. 74(2), pages 489-513, August.
  7. Yamauchi, Futoshi, 2005. "Social learning, neighborhood effects, and investment in human capital," FCND briefs 190, International Food Policy Research Institute (IFPRI).
  8. Borjas, George J, 1995. "Ethnicity, Neighborhoods, and Human-Capital Externalities," American Economic Review, American Economic Association, vol. 85(3), pages 365-90, June.
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  10. Haddad, Lawrence James & Adato, Michelle, 2001. "How effectively do public works programs transfer benefits to the poor?," FCND briefs 108, International Food Policy Research Institute (IFPRI).
  11. Edward L. Glaeser, 1997. "Learning in Cities," Harvard Institute of Economic Research Working Papers 1814, Harvard - Institute of Economic Research.
  12. Case, Anne, 1992. "Neighborhood influence and technological change," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 491-508, September.
  13. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-30, September.
  14. Fafchamps, Marcel & Quisumbing, Agnes R., 1999. "Social roles, human capital, and the intrahousehold division of labor," FCND discussion papers 73, International Food Policy Research Institute (IFPRI).
  15. Mark Rosenzweig & Andrew D. Foster, . "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Home Pages _068, University of Pennsylvania.
  16. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
  17. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
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  19. Caces, Fe & Arnold, Fred & Fawcett, James T. & Gardner, Robert W., 1985. "Shadow households and competing auspices : Migration behavior in the Philippines," Journal of Development Economics, Elsevier, vol. 17(1-2), pages 5-25.
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Citations

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Cited by:
  1. Mahuteau, Stéphane & Junankar, Pramod N. (Raja), 2008. "Do Migrants Get Good Jobs in Australia? The Role of Ethnic Networks in Job Search," IZA Discussion Papers 3489, Institute for the Study of Labor (IZA).
  2. Kudo, Yuya, 2012. "Returns to migration : the role of educational attainment in rural Tanzania," IDE Discussion Papers 322, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  3. Mahuteau, Stephane & Junankar, Pramod, 2007. "Do Migrants succeed in the Australian Labour Market? Furher Evidence on Job Quality," MPRA Paper 8703, University Library of Munich, Germany, revised Mar 2008.
  4. Yamauchi, Futoshi, 2003. "Are experience and schooling complementary?," FCND briefs 166, International Food Policy Research Institute (IFPRI).
  5. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
  6. Ali Berker, 2010. "The Labor Market Consequences of Internal Migration in Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1029, Koc University-TUSIAD Economic Research Forum.

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