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Exposure to Transit Migration, Public Attitudes and Entrepreneurship

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  • Ajzenman, Nicolas

    (McGill University)

  • Aksoy, Cevat Giray

    (European Bank for Reconstruction and Development)

  • Guriev, Sergei

    (Sciences Po, Paris)

Abstract

Does exposure to mass migration affect economic behavior, attitudes and beliefs 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 the distance of each locality to the optimal routes that minimize travelling time between the main origin and destination cities. We first show that the entrepreneurial activity of natives falls considerably in localities that are more exposed to mass transit migration, compared to those located further away. We then explore the mechanisms and find that our results are likely to be explained by a decrease in the willingness to take risks as well as in the confidence in institutions. We also document an increase in the anti-migrant sentiment while attitudes towards other minorities remained unchanged. We rule out the possibility of out-migration of natives or of trade-related shocks (potentially confounded with the mass-transit migration) affecting our results. Using locality-level luminosity data, we also rule out any effect driven by changes in economic activity. Finally, we find no statistically significant effects on other labor market outcomes, such as unemployment or labor force participation.

Suggested Citation

  • Ajzenman, Nicolas & Aksoy, Cevat Giray & Guriev, Sergei, 2020. "Exposure to Transit Migration, Public Attitudes and Entrepreneurship," IZA Discussion Papers 13130, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp13130
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    Cited by:

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    2. 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.
    3. Aksoy, Cevat Giray & Poutvaara, Panu, 2021. "Refugees' and irregular migrants’ self-selection into Europe," Journal of Development Economics, Elsevier, vol. 152(C).
    4. 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.
    5. Sergei Guriev & Elias Papaioannou, 2022. "The Political Economy of Populism," Journal of Economic Literature, American Economic Association, vol. 60(3), pages 753-832, September.
    6. Munroe, Ellen & Nosach, Anastasiia & Pedrozo, Moises & Guarnieri, Eleonora & Riano, Juan Felipe & Tur-Prats, Ana & Valencia Caicedo, Felipe, 2023. "The Legacies of War for Ukraine," CEPR Discussion Papers 17841, C.E.P.R. Discussion Papers.
    7. Aksoy, Cevat Giray & Tumen, Semih, 2021. "Local Governance Quality and the Environmental Cost of Forced Migration," Journal of Development Economics, Elsevier, vol. 149(C).
    8. Cevat Giray Aksoy & Panu Poutvaara, 2019. "Refugees' and Irregular Migrants' Self-Selection into Europe: Who Migrates Where?," CESifo Working Paper Series 7781, CESifo.
    9. 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.
    10. Ajzenman, Nicolas & Dominguez-Rivera, Patricio & Undurraga, Raimundo, 2021. "Immigration, Crime, and Crime (Mis)Perceptions," IZA Discussion Papers 14087, Institute of Labor Economics (IZA).
    11. Alexander Yarkin, 2023. "Learning from the Origins," CESifo Working Paper Series 10626, CESifo.
    12. 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.
    13. Mustafa Özer & Jan Fidrmuc, 2024. "Does Immigration Affect the Natives’ Mental Health? Causal Evidence from Forced Syrian Migration to Turkey," CESifo Working Paper Series 11399, CESifo.
    14. 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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    More about this item

    Keywords

    entrepreneurship; public attitudes; political instability; migrant routes;
    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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