The Dynamics of International Migration: A Three Step Empirical Model of Bangladeshi Migrants in Italy

Kazi Abdul, Mannan and A.O, Krueger (2000): The Dynamics of International Migration: A Three Step Empirical Model of Bangladeshi Migrants in Italy. Published in: Russian Journal of Economic and Social Science , Vol. 8, No. 2 (December 2000): pp. 34-58.

Abstract

This paper empirically examines the relations between wealth, migration costs and networks in determining migration decisions. The aims of this research is to improve the methodological approach in the study of the determinants of migration, to provide policy-makers with better forecasting instruments to avoid the unpredictable and undesirable consequences of immigration reforms. A three step procedure based on Instrumental Variable and Inverse Mills Ratio (IMR) is applied to identify the effect of selection (Probit and IV-Probit) and to examine the number of migrants a household sends abroad (IMR and IV Regression). Findings delve out that Bangladeshi migrants belong to the middle of the income distribution in Bangladesh. Migration and wealth are non-linearly related. Household and community networks increase the migration propensity. Specifically, when large enough, networks further increase the migration propensity of the households belonging to the middle-left of the income distribution. Community and household-level networks are partially substitutes and partially complements. This study suggests that the effect of Italian legislation on Bangladeshi migration should be investigated in more detail, focusing not on the aggregate level of analysis, but on checking whether changes in legislation have generated changes in the composition of migration flows.

• Item Type: MPRA Paper
• Language: English
• Keywords: Migration, dynamics, social capital, networks, kinship, Bangladesh, Italy
• Subjects: D - Microeconomics > D0 - General; D - Microeconomics > D0 - General > D01 - Microeconomic Behavior: Underlying Principles; D - Microeconomics > D1 - Household Behavior and Family Economics; J - Labor and Demographic Economics > J0 - General; J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General; J - Labor and Demographic Economics > J0 - General > J08 - Labor Economics Policies; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J61 - Geographic Labor Mobility ; Immigrant Workers; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J62 - Job, Occupational, and Intergenerational Mobility; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J68 - Public Policy

References

Bauer, T., & Zimmerman, K. (1997). Network Migration of Ethnic Germans. International Migration Review, 31(1), 143-49.

Banerjee, B. (1991). The Determinants of Migrating with a Pre-arranged Job and the Initial Duration of Urban Employment: An Analysis

Boyd, M. (1989). Family and Personal Networks in International Migration: Recent Developments and New Agendas. International Migration Review, 23(3), 638-70.

Caces, M. F. (1986). Immigrant Recruitment into the Labor Force: Social Networks Among Filipinos in Amerasia, 13, 23-28.

Cameron, A. C., & Trivedi, P. K. (1998). Regression Analysis of Count Data. Vol. Econometric Society Monograph No.30. Cambridge University Press.

Findley, S. (1987). An Interactive Contextual Model of Migration to the United States: A Crtical Review. Latin American Economic Review, 27(2), 3-42.

Frey, W. (1996). Immigrant and Native Migrant Magnets. American Demographics, 18(11), 36-41.

Grieco, E. (1998). The Effects of Migration on the Establishment of Networks: Caste Disintegration. International Migration Review, 32(3), 704-36.

Gurak, D., & Caces, M. F. (1992). Migration Networks and the Shaping of the Migration System. In M. Kritz, L. Lim, & Zlotnik(eds). International Migration System: A Global Approach. New York: Oxford University Press.

Hadley, L. H. (1977). The Migration of Egyptian Human Capital to the Arab Oil- Producing States: A Cost-Benefit Analysis. International Migration Review, 11(3), 25-299.

Lee, E. S. (1966). The Theory of Migration. Demography, 3 (1), 47-57.

Mannan, K. A., & Kozlov, V. V. (1999). Migration Decision-Making among Bangladeshi Migrants in Italy: A Combined Model Approach. Russian Management Journal. 10(2), 19-42.

Mannan, K. A., & Krueger, A. O. (1998). Social Capital and Networks Role in Migrants’ Labour Market Outcomes at Destination: A Study of Bangladeshi Migrants in Italy. Russian Journal of Economic and Social Science, 6(2), 54-74.

Mannan, K. A., & Kozlov, V. V. (1997). Transits and Transnational Route of Migration and Trafficking: A Journey from Bangladesh to Italy via Moscow, Russia. Russian Management Journal. 8(2), 27-48.

Mannan, K. A., & Krueger, A. O. (1996). Sustainability of the New Economy: An Empirical Study of Bangladeshi Migrants in Moscow. Russian Journal of Economic and Social Science. 4(2), 65-80.

Mannan, K. A., & Kozlov, V. V. (1995). Socio-economic life style of Bangladeshi man married to Russian girl: An analysis of migration and integration perspective. Russian Management Journal. 6(1), 25-44.

Massey, D., & Espana, F.G. (1987). The Social Process of International Migration. Science, 237 (4816), 733-738.

Massey, D. S., Joaquin, A. Graeme, H. Ali, K. Adela, P., & Taylor, J. E. (1993). Theories of International Migration: A Review and Appraisal. Population and Development Review (Population Council, 19(3). 433-466.

Menjivar, C. (1995). Kinship Networks Among Immigrants: Lessons from a Qualitative Comparative Approach. International Journal of Comparative Sociology, 36(3-4), 219-32.

Mroz, T. A. (1987). The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions. Econometrica (The Econometric Society) 55(4), 765-799.

Neumann, K., & Massey, D. (1994). Undocumented Migration and the Quality and Quality of Social Capital. Presented at the Population Association of American Meetings, Miami, May.

Roberts, K., Morris, M. (1996). Fortune, Risk and Remittances: An Application of Option Theory to Participation in Village Based Migration Networks. Presented at the Annual Meeting of the Population Association of America. New Orleans, May.

Shaw, P. (1974). A Note on Cost-Returns Calculations and Decisions to Migrate. Population Studies, 28(1), 167-169.

Sjaastad, L. A. (1962). The Costs and Benefits of Human Migration. The Journal of Political Economy, 70(5), 80-93.

Speare J. A. (1971). A Cost-Benefit Model of Rural to Urban Migration in Taiwan. Population Studies, 25, 117-131.

Stark, O., Bloom, D. (1985). The New Economics of Labor Migration. American Economic Review, 75, 173-8.

Taylor, J. E. (1986). Differential Migration, Networks, Information and Risk. In Stark. O (eds). Migration, Human Capital and Development. Greenwich, CT, JAI Press.

Todaro, M. (1976). Internal Migration in Developing Countries, Geneva: International Labor Organization.

Todaro, M (1969). A Model of Labor Migration and Urban Unemployment in Less Developed. American Economic Review, 59(1), 138-48.

Todaro, M., & Maruszko, L. (1987). Illegal Migration and U.S. Immigration Reform: A Conceptual. Population and Development Review, 13, 101-14.

Waldorf, B. (1996). The Internal Dynamic of International Migration Systems. Environment and Planning, 28, 632-50.

Winters, P, de Janvry, A., & Sadoulet, E (1999). Family and Community Networks In Mexico-U.S. Migration. No 12907, Working Papers, University of New England, School of Economics.

Wilson, T. D. (1994). What Determines Where Transnational Labor Migration Go? Modifications in Migration Theories. Human Organization, 53(3), 269-78.