Ventura, Luigi and Ventura, Maria (2021): Migration, Diversity and Regional Risk Sharing. Published in: Applied Economics (25 May 2021)
Preview |
PDF
MPRA_paper_107712.pdf Download (3MB) | Preview |
Abstract
The economic consequences of migration have become the topic of many recent contributions in theoretical and applied economics. However, only a handful of papers have dealt with the implications of migration for risk sharing. We intend to fill in this gap in the literature by exploring the effects of migration and the ensuing cultural diversity on risk sharing in receiving economies, by using data on US states in the period 2000-2015. Our empirical results strongly suggest that migration enhances risk sharing in host economies, but non monotonically so. Moreover, cultural diversity is key in this risk sharing-enhancing effect of migration.
Item Type: | MPRA Paper |
---|---|
Original Title: | Migration, Diversity and Regional Risk Sharing |
Language: | English |
Keywords: | Regional risk sharing, Consumption insurance, Migration, Diversity |
Subjects: | C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration |
Item ID: | 107712 |
Depositing User: | Miss Maria Ventura |
Date Deposited: | 29 May 2021 15:41 |
Last Modified: | 29 May 2021 15:41 |
References: | Ager, P., & Brückner, M. (2013). Cultural diversity and economic growth: Evidence from the US during the age of mass migration. European Economic Review, 64, 76–97. Alesina, A., Harnoss, J., & Rapoport, H. (2016). Birthplace diversity and economic prosperity. Journal of Economic Growth, 21(2), 101–138. Alesina, A., & La Ferrara, E. (2005). Ethnic diversity and economic performance. Journal of economic literature, 43(3), 762–800. Ambrus, A., Mobius, M., & Szeidl, A. (2014). Consumption risk-sharing in social networks. American Economic Review, 104(1), 149–82. Artis, M. J., & Hoffmann, M. (2012). The home bias, capital income flows and improved long-term consumption risk sharing between industrialized countries. International Finance, 14(3), 481–505. Asdrubali, P., Sørensen, B. E., & Yosha, O. (1996). Channels of interstate risk sharing: United states 1963–1990. The Quarterly Journal of Economics, 111(4), 1081–1110. Ashraf, Q., & Galor, O. (2013). The “out of africa” hypothesis, human genetic diversity, and comparative economic development. The American Economic Review, 103(1), 1–46. Attanasio, O., & Davis, S. J. (1996). Relative wage movements and the distribution of consumption. Journal of political Economy, 104(6), 1227–1262. Balli, F., & Rana, F. (2015). Determinants of risk sharing through remittances. Journal of Banking Finance, 55, 107 - 116. (Global Governance and Financial Stability) Bellini, E., Ottaviano, G. I. P., Pinelli, D., & Prarolo, G. (2013). Cultural diversity and economic performance: Evidence from european regions. In Geography, institutions and regional economic performance (pp. 121–141). Springer. Borjas, G. J. (2003). The labor demand curve is downward sloping: Reexamining the impact of immigration on the labor market. The Quarterly Journal of Economics, 118(4), 1335–1374. Bove, V., & Elia, L. (2017). Migration, diversity, and economic growth. World Development, 89, 227–239. Butcher, K. F., & Card, D. (1991). Immigration and wages: Evidence from the 1980’s. The American Economic Review, 81(2), 292–296. Cabrales, A., Gottardi, P., & Vega-Redondo, F. (2017). Risk sharing and contagion in networks. The Review of Financial Studies, 30(9), 3086–3127. Card, D., & Lewis, E. G. (2007). The diffusion of mexican immigrants during the 1990s: Explanations and impacts. In Mexican immigration to the united states (pp. 193–228). Cochrane, J. H. (1991). Pitfalls and opportunities: What macroeconomists should know about unit roots: Comment. NBER Macroeconomics Annual, 6, 201–210. Crucini, M. J. (1999). On international and national dimensions of risk sharing. Review of Economics and Statistics, 81(1), 73–84. De Haan, A. (1999). Livelihoods and poverty: The role of migration-a critical review of the migration literature. The journal of development studies, 36(2), 1–47. De Weerdt, J., & Hirvonen, K. (2016). Risk sharing and internal migration. Economic Development and Cultural Change, 65(1), 63-86. Fitzsimons, E., Malde, B., & Vera-Hernández, M. (2018). Group size and the efficiency of informal risk sharing. The Economic Journal, 128(612), F575–F608. Fuleky, P., Ventura, L., & Zhao, Q. (2018). Common correlated effects and international risk sharing. International Finance, 21(1), 55–70. Gören, E. (2014). How ethnic diversity affects economic growth. World Development, 59, 275–297. Grande, G., & Ventura, L. (2002). Labor income and risky assets under market incompleteness: Evidence from italian data. Journal of banking & finance, 26(2-3), 597–620. Grimard, F. (1997). Household consumption smoothing through ethnic ties: evidence from cote d’ivoire. Journal of development Economics, 53(2), 391–422. Guiso, L., Sapienza, P., & Zingales, L. (2006). Does culture affect economic outcomes? Journal of Economic perspectives, 20(2), 23–48. Hayashi, F., Altonji, J., & Kotlikoff, L. (1996). Risk-sharing between and within families. Econometrica: Journal of the Econometric Society, 261–294. Herdağdelen, A., State, B., Adamic, L., & Mason, W. (2016). The social ties of immigrant communities in the united states. In Proceedings of the 8th acm conference on web science (pp. 78–84). New York, NY, USA: ACM. Horwitz, S. K., & Horwitz, I. B. (2007). The effects of team diversity on team outcomes: A meta-analytic review of team demography. Journal of management, 33(6), 987–1015. Jain, P. (2015). Imperfect monitoring and informal risk sharing: The role of social ties. University of Michigan, 11, 44. King, R. (1996). A celebration of migration (Vol. 25). Geography Laboratory, University of Sussex. Kose, M. A., Prasad, E. S., & Terrones, M. E. (2009). Does financial globalization promote risk sharing? Journal of Development Economics, 89(2), 258–270. Krueger, D., & Perri, F. (2005). Understanding consumption smoothing: Evidence from the us consumer expenditure data. Journal of the European Economic Association, 3(2-3), 340–349. Krueger, D., & Perri, F. (2011). Public versus private risk sharing. Journal of Economic Theory, 146(3), 920–956. Lucas, R. E. (2005). International migration and economic development: Lessons from low-income countries. Edward Elgar Publishing. Mace, B. J. (1991). Full insurance in the presence of aggregate uncertainty. Journal of Political Economy, 99(5), 928-956. Retrieved from http://ideas.repec.org/a/ucp/jpolec/v99y1991i5p928-56.html Mauro, P. (1995). Corruption and growth*. The Quarterly Journal of Economics, 110(3), 681-712. Retrieved from http://dx.doi.org/10.2307/2946696 Mélitz, J. (2004). Risk-sharing and emu. JCMS: Journal of Common Market Studies, 42(4), 815–840. Mélitz, J., & Zumer, F. (1999). Interregional and international risk-sharing and lessons for emu. Carnegie-Rochester Conference Series on Public Policy, 51, 149 - 188. Retrieved from http://www.sciencedirect.com/science/article/pii/S0167223100000087 Montalvo, J. G., & Reynal-Querol, M. (2005). Ethnic diversity and economic development. Journal of Development economics, 76(2), 293–323. Munshi, K., & Rosenzweig, M. (2016). Networks and misallocation: Insurance, migration, and the rural-urban wage gap. American Economic Review, 106(1), 46–98. Ottaviano, G. I. P., & Peri, G. (2006). The economic value of cultural diversity: Evidence from us cities. Journal of Economic Geography, 6(1), 9–44. Pesaran, M. H. (2006). Estimation and inference in large heterogeneous panels with a multifactor error structure. Econometrica, 74(4), 967–1012. Portes, A., & Sensenbrenner, J. (1993). Embeddedness and immigration: Notes on the social determinants of economic action. American journal of sociology, 98(6), 1320–1350. Roback, J. (1982). Wages, rents, and the quality of life. Journal of Political Economy, 90(6), 1257–1278. Rodríguez-Pose, A., & Hardy, D. (2015). Cultural diversity and entrepreneurship in england and wales. Environment and Planning A, 47(2), 392–411. Ryan, L., Erel, U., & D’Angelo, A. (2015). Introduction understanding migrant capital. In Migrant capital (pp. 3–17). Springer. Sanders, J., Nee, V., & Sernau, S. (2002). Asian immigrants’ reliance on social ties in a multiethnic labor market. Social Forces, 81(1), 281–314. Skeldon, R. (1997). Rural-to-urban migration and its implications for poverty alleviation. Asia-Pacific Population Journal, 12(1), 3–16. Tabellini, G. (2010). Culture and institutions: economic development in the regions of europe. Journal of the European Economic association, 8(4), 677–716. The World Bank. (2009). World development report 2009 : Reshaping economic geography. World Bank Group. Townsend, R. M. (1994). Risk and insurance in village india. Econometrica: Journal of the Econometric Society, 539–591. Trax, M., Brunow, S., & Suedekum, J. (2015). Cultural diversity and plant-level productivity. Regional Science and Urban Economics, 53, 85–96. Wadhwa, V., Saxenian, A., Rissing, B. A., & Gereffi, G. (2008). Skilled immigration and economic growth. Available at SSRN 1141190. Woldemichael, A., & Gurmu, S. (2018). An empirical analysis of health shocks and informal risk sharing networks. African Development Review, 30(1), 100–111. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/107712 |