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Exposure to transit migration: Public attitudes and entrepreneurship

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  • Ajzenman, Nicolás
  • Aksoy, Cevat Giray
  • Guriev, Sergei

Abstract

Does exposure to mass migration affect the attitudes and economic behavior of natives in transit countries? In order to answer this question, we use a unique locality-level panel from the 2010 and 2016 rounds of the Life in Transition Survey and data on the main land routes taken by migrants in 18 European countries during the refugee crisis in 2015. To capture the exogenous variation in natives’ exposure to transit migration, we construct an instrument that is based on each locality’s distance to the optimal routes that minimize traveling time between refugees’ main origins and destinations. We find that the entrepreneurial activity of native population falls considerably in localities that are more exposed to mass transit migration, compared to those located farther away. We explore potential mechanisms and find that exposure to mass transit migration results in lower confidence in government, higher perceived political instability, and less willingness to take risks. We also document an increase in anti-migrant sentiment while attitudes towards other minorities remain unchanged.

Suggested Citation

  • Ajzenman, Nicolás & Aksoy, Cevat Giray & Guriev, Sergei, 2022. "Exposure to transit migration: Public attitudes and entrepreneurship," Journal of Development Economics, Elsevier, vol. 158(C).
  • Handle: RePEc:eee:deveco:v:158:y:2022:i:c:s0304387822000608
    DOI: 10.1016/j.jdeveco.2022.102899
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    3. Aksoy, Cevat Giray & Tumen, Semih, 2021. "Local Governance Quality and the Environmental Cost of Forced Migration," Journal of Development Economics, Elsevier, vol. 149(C).
    4. Ramón Rey & Günther G. Schulze & Nikita Zakharov, 2024. "Transit Migration and Crime: Evidence from Colombia," Discussion Paper Series 44 JEL Classification: J1, Department of International Economic Policy, University of Freiburg, revised Jan 2024.
    5. Aksoy, Cevat Giray & Poutvaara, Panu, 2021. "Refugees' and irregular migrants’ self-selection into Europe," Journal of Development Economics, Elsevier, vol. 152(C).
    6. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.
    7. Sergei Guriev & Elias Papaioannou, 2022. "The Political Economy of Populism," Journal of Economic Literature, American Economic Association, vol. 60(3), pages 753-832, September.
    8. Reinhard Weisser, 2021. "Run, graduate, run: Internationally mobile students’ reactions to changing political landscapes in Europe," Working Papers 2021.06, International Network for Economic Research - INFER.
    9. Cevat Giray Aksoy & Panu Poutvaara, 2019. "Refugees' and Irregular Migrants' Self-Selection into Europe: Who Migrates Where?," CESifo Working Paper Series 7781, CESifo.
    10. Betts,Alexander Milton Stedman & Stierna,Maria Flinder & Omata,Naohiko & Sterck,Olivier Christian Brigitte, 2022. "Social Cohesion and Refugee-Host Interactions : Evidence from East Africa," Policy Research Working Paper Series 9917, The World Bank.
    11. Ajzenman, Nicolas & Dominguez-Rivera, Patricio & Undurraga, Raimundo, 2021. "Immigration, Crime, and Crime (Mis)Perceptions," IZA Discussion Papers 14087, Institute of Labor Economics (IZA).
    12. Betts, Alexander & Flinder Stierna, Maria & Omata, Naohiko & Sterck, Olivier, 2023. "Refugees welcome? Inter-group interaction and host community attitude formation," World Development, Elsevier, vol. 161(C).

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    Keywords

    Migrant routes; Entrepreneurship; Public attitudes; Confidence in government;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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