The Determinants of Migration: Italian Regional Factors and the Relationship with Filipino Migrant Labor Supply
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May 25, 2020
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Abstract
Throughout the years, the segmentation of the Italian labor market across regions, classes, genders, skill-levels and sectors has beneted from the supply of migrant labor. Among these migrant laborers, Filipinos met the demand for labor across various sectors where native supply is insufficient for local demand. Nevertheless, despite demand, the migration inflow fluctuates in response to variations in economic and geographic conditions. This study investigates the region-specific drivers of the annual inflow of Filipino migrants to the various regions in Italy. Using the annual arrivals of labor migrants from the Philippines to Italy for the period of 2007-2017, this paper uses static and dynamic estimation techniques by utilizing regional economic and demographic indices. The results show adherence to and diversion from migration theories and expected movements. Regardless of the substantial regional differences, the Filipino migrant stock is the most stable and significant variable in influencing regional migration inflow.
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Magante, M. C. (2020) “The Determinants of Migration: Italian Regional Factors and the Relationship with Filipino Migrant Labor Supply”, World Journal of Applied Economics, 6(1), pp. 21-39. doi: 10.22440/wjae.6.1.2.
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References
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Kuhn, W. E. (1978). Guest Workers as an Automatic Stabilizer of Cyclical Unemployment in Switzerland and Germany. The International Migration Review, 12, 210-24. doi:10.2307/2545604
Labor, M., & Policies, S. (2018). Foreigners in the Italian Labour Market.
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MacDonald, J. S., & MacDonald, L. D. (1964). Chain Migration Ethnic Neighbourhood Formation and Social Networks. The Milbank Memorial Fund Quaterly, 42, 82-97. doi:10.2307/3348581
Massey, D. S., Arango, J., Hugo, G., Kouaouci, A., Pellegrino, A., & Taylor, J. E. (1993). Does Housework Lower Wages? Evidence for Britain. Population and Development Review, 19, 431-66. doi:10.2307/2938462
McKenzie, D., Stillman, S., & Gibson, J. (2010). How Important is Selection? Experimental VS. Non-Experimental Measures of the Income Gains from Migration. Journal of the European Economic Association, 8, 913-45. doi:10.1111/j.1542-4774.2010.tb00544.x
McKenzie, D., Theoharides, C., & Yang, D. (2014). Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks. American Economic Journal: Applied Economics, 6, 49-75. doi:10.1257/app.6.2.49
Niebuhr, A. (2003). Spatial Interaction and Regional Unemployment in Europe. European Journal of Spatial Development, 1-26.
Obstfeld, M., & Peri, G. (1999). Regional Non-adjustment and Fiscal Policy: Lessons for EMU. Working Paper, National Bureau of Economic Research.
Potepan, M. J. (1994). Intermetropolitan Migration and Housing Prices: Simultaneously Determined? Journal of Housing Economics, 3, 77-91. doi:10.1006/jhec.1994.1001
Reich, M., Gordon, D. M., & Edwards, R. C. (1973). A Theory of Labor Market Segmentation. The American Economic Review, 63, 359-365.
Riva, E., & Zanfrini, L. (2013). The Labor Market Condition of Immigrants in Italy: The Case of Lombardy. Revue Interventions Économiques. Papers in Political Economy, 47, 1-26. doi:10.4000/interventionseconomiques.1987
Rodriguez, R. M. (2010). The Emergence of Labor Brokerage: U.S. Colonial Legacies in the Philippines. In Migrants for Export: How the Philippine State Brokers Labor to the World (pp. 1-18). University of Minnesota Press.
Roodman, D. (2009). How to do Xtabond2: An Introduction to Difference and System GMM in Stata. The Stata Journal, 9, 86-136. doi:10.1177/1536867x0900900106
Salvatore, D. (1977). An Econometric Analysis of Internal Migration in Italy. Journal of Regional Science, 17, 395-408. doi:10.1111/j.1467-9787.1977.tb00510.x
Sanders, J. M., & Nee, V. (1987). Limits of Ethnic Solidarity in the Enclave Economy. American Sociological Review, 52, 745-73. doi:10.2307/2095833
Sassen, S. (1991). The Global City: New York, London, Tokyo. Princeton University Press.
Sim, D. (2000). Housing Inequalities and Minority Ethnic Groups. In I. Anderson, & D. Sim (Eds.), Social Exclusion and Housing: Context and Challenges. Chartered Institute of Housing: Coventry.
Vlist, A. J., Czamanski, D., & Folmer, H. (2011). Immigration and Urban Housing Market Dynamics: The Case of Haifa. The Annals of Regional Science, 47, 585-98. doi:10.1007/s00168-010-0396-2
Waldinger, R. (1994). The Making of an Immigrant Niche. International Migration Review, 28, 3-30. doi:10.1177/019791839402800101
Waldinger, R. (1996). Still the Promised City? African-Americans and New Immigrants in Post Industrial New York. Harvard University, Cambridge.
Windmeijer, F. (2005). A Finite Sample Correction for the Variance of Linear Efficient Two-step GMM Estimators. Journal of Econometrics, 126, 25-51. doi:10.1016/j.jeconom.2004.02.005
Yang, D. (2008). International Migration, Remittances and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks. The Economic Journal, 118, 591-630. doi:10.1111/j.1468-0297.2008.02134.x
Andersson, H. E., & Nilsson, S. (2011). Asylum Seekers and Undocumented Migrants' Increased Social Rights in Sweden. International Migration, 49, 167-188. doi:10.1111/j.1468-2435.2009.00586.x
Authority, P. S. (2018). 2017 Survey on Overseas Filipino.
Bauer, T., Epstein, G. S., & Gang, I. N. (2005). Enclaves, Language, and the Location Choice of Migrants. Journal of Population Economics, 18, 649-662. doi:10.1007/s00148-005-0009-z
Beets, G., & Willekens, F. (2009). The Global Economic Crisis and International Migration: An Uncertain Outlook. Vienna Yearbook of Population Research, 7, 19-37.
Bertola, G. (2000). Labour Markets in the European Union. CESifo Forum, 1, 9-11.
Biagi, B., & Dotzel, K. R. (2018). Theoretical Advances on Interregional Migration Models. In B. Biagi, A. Faggian, I. Rajbhandari, & V. Venhorst (Eds.), New Frontiers in Interregional Migration Research (The Regional Science Series) (pp. 21-47). Springer, Cham. doi:10.1007/978-3-319-75886-2_2
Biagi, B., Faggian, A., & McCann, P. (2011). Long and Short Distance Migration in Italy: The Role of Economic, Social and Environmental Characteristics. Spatial Economic Analysis, 6, 111-31. doi:10.1080/17421772.2010.540035
Blundell, R., & Bond, S. R. (1998). Initial Conditions and Moment Restrictions in Dynamic Panel Data Models. Journal of Econometrics, 87, 115-43. doi:10.1016/S0304-4076(98)00009-8
Bond, S. R. (2008). Dynamic Panel Data Models: A Guide to Micro Data Methods and Practice. cmmap Working Paper, The Institute for Fiscal Studies. doi:10.1920/wp.cem.2002.0902
Burridge, P., & Gordon, I. (1981). Unemployment in the British Metropolitan Labour Areas. Oxford Economic Papers, 33, 274-27. doi:10.1093/oxfordjournals.oep.a041509
Cannari, L., Nucci, F., & Sestito, P. (2000). Geographic Labour Mobility and the Cost of Housing: Evidence from Italy. Applied Economics, 32, 1899-1906. doi:10.1080/000368400425116
Chiswick, B. R., & Miller, P. W. (2005). Do Enclaves Matter in Immigrant Adjustment? City & Community, 4, 5-35. doi:10.1111/j.1535-6841.2005.00101.x
Commission, E. (2003). Demographic Statistics: Definitions and Methods of Collection in 31 European Countries. European Commission.
Daveri, F., & Faini, R. (1999). Where Do Migrants Go? Oxford Economic Papers, 51, 595-622. doi:10.1093/oep/51.4.595
Dobson, J., Latham, A., & Salt, J. (2009). On the Move? Labour Migration in Times of Recession. Policy Network Paper, Policy Network.
Education, T., & Authority, S. D. (2017). TESDA to Give Free Trainings to Returning OFWs.
Eichengreen, B. (1993). Labor Markets and European Monetary Unification. In P. R. Masson, & M. P. Taylor (Eds.), Policy Issues in the Operation of Currency Unions (pp. 130–162). Cambridge University Press. doi:10.1017/CBO9780511599194.007
Etzo, I. (2011). Determinants of Interregional Migration in Italy: A Panel Data Analysis. MPRA Paper, University Library of Munich.
Fachin, S. (2007). Long-run Trends in Internal Migrations in Italy: A Study in Panel Cointegration with Dependent Units. Journal of Applied Econometrics, 22, 401-28. doi:10.1002/jae.907
Furceri, D. (2006). Does Labour Respond to Cyclical Fluctuations? The Case of Italy. Applied Economics Letters, 13, 135-39. doi:10.1080/13504850500392925
Harris, J. R., & Todaro, M. P. (1970). Migration, Unemployment and Development: A Two-sector Analysis. The American Economic Review, 60, 126-42.
Jennissen, R. P. (2004). Macro-economic Determinants of International Migration in Europe. Dutch University Press.
Kuhn, W. E. (1978). Guest Workers as an Automatic Stabilizer of Cyclical Unemployment in Switzerland and Germany. The International Migration Review, 12, 210-24. doi:10.2307/2545604
Labor, M., & Policies, S. (2018). Foreigners in the Italian Labour Market.
Lindio-McGovern, L. (2003). Labor Export in the Context of Globalization. International Sociology, 18, 513-34. doi:10.1177/02685809030183004
MacDonald, J. S., & MacDonald, L. D. (1964). Chain Migration Ethnic Neighbourhood Formation and Social Networks. The Milbank Memorial Fund Quaterly, 42, 82-97. doi:10.2307/3348581
Massey, D. S., Arango, J., Hugo, G., Kouaouci, A., Pellegrino, A., & Taylor, J. E. (1993). Does Housework Lower Wages? Evidence for Britain. Population and Development Review, 19, 431-66. doi:10.2307/2938462
McKenzie, D., Stillman, S., & Gibson, J. (2010). How Important is Selection? Experimental VS. Non-Experimental Measures of the Income Gains from Migration. Journal of the European Economic Association, 8, 913-45. doi:10.1111/j.1542-4774.2010.tb00544.x
McKenzie, D., Theoharides, C., & Yang, D. (2014). Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks. American Economic Journal: Applied Economics, 6, 49-75. doi:10.1257/app.6.2.49
Niebuhr, A. (2003). Spatial Interaction and Regional Unemployment in Europe. European Journal of Spatial Development, 1-26.
Obstfeld, M., & Peri, G. (1999). Regional Non-adjustment and Fiscal Policy: Lessons for EMU. Working Paper, National Bureau of Economic Research.
Potepan, M. J. (1994). Intermetropolitan Migration and Housing Prices: Simultaneously Determined? Journal of Housing Economics, 3, 77-91. doi:10.1006/jhec.1994.1001
Reich, M., Gordon, D. M., & Edwards, R. C. (1973). A Theory of Labor Market Segmentation. The American Economic Review, 63, 359-365.
Riva, E., & Zanfrini, L. (2013). The Labor Market Condition of Immigrants in Italy: The Case of Lombardy. Revue Interventions Économiques. Papers in Political Economy, 47, 1-26. doi:10.4000/interventionseconomiques.1987
Rodriguez, R. M. (2010). The Emergence of Labor Brokerage: U.S. Colonial Legacies in the Philippines. In Migrants for Export: How the Philippine State Brokers Labor to the World (pp. 1-18). University of Minnesota Press.
Roodman, D. (2009). How to do Xtabond2: An Introduction to Difference and System GMM in Stata. The Stata Journal, 9, 86-136. doi:10.1177/1536867x0900900106
Salvatore, D. (1977). An Econometric Analysis of Internal Migration in Italy. Journal of Regional Science, 17, 395-408. doi:10.1111/j.1467-9787.1977.tb00510.x
Sanders, J. M., & Nee, V. (1987). Limits of Ethnic Solidarity in the Enclave Economy. American Sociological Review, 52, 745-73. doi:10.2307/2095833
Sassen, S. (1991). The Global City: New York, London, Tokyo. Princeton University Press.
Sim, D. (2000). Housing Inequalities and Minority Ethnic Groups. In I. Anderson, & D. Sim (Eds.), Social Exclusion and Housing: Context and Challenges. Chartered Institute of Housing: Coventry.
Vlist, A. J., Czamanski, D., & Folmer, H. (2011). Immigration and Urban Housing Market Dynamics: The Case of Haifa. The Annals of Regional Science, 47, 585-98. doi:10.1007/s00168-010-0396-2
Waldinger, R. (1994). The Making of an Immigrant Niche. International Migration Review, 28, 3-30. doi:10.1177/019791839402800101
Waldinger, R. (1996). Still the Promised City? African-Americans and New Immigrants in Post Industrial New York. Harvard University, Cambridge.
Windmeijer, F. (2005). A Finite Sample Correction for the Variance of Linear Efficient Two-step GMM Estimators. Journal of Econometrics, 126, 25-51. doi:10.1016/j.jeconom.2004.02.005
Yang, D. (2008). International Migration, Remittances and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks. The Economic Journal, 118, 591-630. doi:10.1111/j.1468-0297.2008.02134.x