Nach oben pdf The costs and benefits of European immigration

The costs and benefits of European immigration

The costs and benefits of European immigration

Public Finances The implication of international migration on the welfare systems of EU Member States is diverse. Empirical evidence illustrates that the impact is strongly dependent upon the original “gate of entry” or way of admission, the labour market access and – as a result of the former – the socio-economic cha- racteristics (labour market performance) of the immigrants. Countries with a high share of economic immigration, implying that immigrants have a spee- dier access to work (e.g. UK, Italy, Greece, Portugal and Spain), experienced a positive contribution of immigrants to the treasury. In countries where im- migration flows were dominated by asylum-seekers (who are permitted to work under restrictive conditions) and families reuniting (e.g. Denmark, Swe- den) immigrants were more dependent on welfare payments than natives. The same occured in countries were immigrants had a low labour market per- formance (partly due to discrimination and inappropriate access to schooling and training; e.g. the Netherlands). Germany partly also falls into this catego- ry because of the large-scale admission of ethnic Germans and their depend- ent family members who are characterised by high unemployment and high take-up rates of state pensions. The lowest labour market performance regis- tered in the EU-15 in 2003 was that of immigrant women of Turkish and North African origin, illustrating that migrant women (in particular Muslim wom- en) are more likely than men to remain outside the labour market, which makes it more difficult for them to integrate into the receiving society. Policy implications: A re-orientation towards a more selective immigra- tion policy based on individual characteristics of the migrants (e.g. age, skills) and particular shortages identified in the receiving country would assure a more rapid labour market integration. As a result the migrant population would make positive net contributions to the public finance. This is clearly demonstrated by the examples of Australia, Canada and New Zealand. In the short run, however, admission to many EU Member States will be dominated by family reunion and humanitarian protection. In order to reach a lower dependency rate on social transfer payments for these immigrant groups, receiving countries should grant them access to work soon after ad- mission.
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The costs and benefits of different initial teacher training routes

The costs and benefits of different initial teacher training routes

In summary, pupil attainment is significantly related to multiple characteristics of pupils (for example, ethnic group and eligibility for free school meals) and schools (for example, average levels of deprivation of the student body and pre- existing indicators of quality such as Ofsted grades), but is largely unaffected by the presence of trainee teachers. This may be because the indirect impact of trainees on pupil attainment in national assessments is small or because the direct impact is limited through the allocation of trainees to pupils of other ages. Do these results suggest that schools’ concerns about the impact of taking a trainee on pupil attainment are misplaced? Perhaps not. First, pupil attainment may be negatively affected at ages not captured by national assessments at the end of each phase of education. Second, the schools may act according to whether they believe pupil attainment will be affected in their school. That is, trainees are not allocated to schools at random, and we may observe the presence of a trainee only where the school has decided that pupil attainment would not be at risk. We would therefore not expect to observe a relationship between pupil attainment and the presence of a trainee in these schools, but may expect that pupil attainment would be affected were trainees to be imposed without choice on other schools.
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Assessing the costs and benefits of capital-based macroprudential policy

Assessing the costs and benefits of capital-based macroprudential policy

frameworks. Alternatively, we estimate eq. (1) without country dummies. 8 Since many of the countries in our sample were affected by the global financial crisis, robust standard errors are clustered at the quarterly level in order to account for potential correlation in the error terms. To extract early warning signals from the logistic model we make use of the signalling approach that was developed by Kaminsky et al. (1998) and extended by Alessi and Detken (2011), Lo Duca and Peltonen (2013) and Sarlin (2013). The idea is to define a probability threshold above which a model issues a warning signal, where the optimal threshold depends on policy makers’ relative aversion against Type I errors (not issuing a signal when a crisis is imminent) and Type II errors (issuing a signal when no crisis is imminent). Specifically, the logistic model issues a warning signal whenever the predicted probability of being in a vulnerable state exceeds a threshold τ , defined as a percentile of the country-specific distribution of predicted probabilities. In this way, predicted probabilities P (yit \ = 1) are transformed into binary predictions ˆ Qit that equal one if the threshold τ is exceeded for the respective observation and zero otherwise. The predictive ability of the model can then be evaluated by comparing the signals issued by the model to the actual outcome C it (equal to one if the country experiences a crisis seven to twelve quarters ahead of the respective period and zero otherwise.). Each observation is allocated to one of the quadrants in the contingency matrix depicted in Figure 1: A period with a signal by a specific indicator can either be followed by a systemic crisis seven to twelve quarters ahead (TP) or not (FP). Similarly, a period without a signal can be followed by a crisis seven to twelve quarters ahead (FN) or not (TN). The number of observations classified into each category depends on the threshold τ .
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Assessing the costs and benefits of capital-based macroprudential policy

Assessing the costs and benefits of capital-based macroprudential policy

frameworks. Alternatively, we estimate eq. (1) without country dummies. 8 Since many of the countries in our sample were affected by the global financial crisis, robust standard errors are clustered at the quarterly level in order to account for potential correlation in the error terms. To extract early warning signals from the logistic model we make use of the signalling approach that was developed by Kaminsky et al. (1998) and extended by Alessi and Detken (2011), Lo Duca and Peltonen (2013) and Sarlin (2013). The idea is to define a probability threshold above which a model issues a warning signal, where the optimal threshold depends on policy makers’ relative aversion against Type I errors (not issuing a signal when a crisis is imminent) and Type II errors (issuing a signal when no crisis is imminent). Specifically, the logistic model issues a warning signal whenever the predicted probability of being in a vulnerable state exceeds a threshold τ , defined as a percentile of the country-specific distribution of predicted probabilities. In this way, predicted probabilities P (y \ it = 1) are transformed into binary predictions ˆ Q it that equal one if the threshold τ is exceeded for the respective observation and zero otherwise. The predictive ability of the model can then be evaluated by comparing the signals issued by the model to the actual outcome C it (equal to one if the country experiences a crisis seven to twelve quarters ahead of the respective period and zero otherwise.). Each observation is allocated to one of the quadrants in the contingency matrix depicted in Figure 1: A period with a signal by a specific indicator can either be followed by a systemic crisis seven to twelve quarters ahead (TP) or not (FP). Similarly, a period without a signal can be followed by a crisis seven to twelve quarters ahead (FN) or not (TN). The number of observations classified into each category depends on the threshold τ .
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Immigration and welfare state cash benefits: The Danish case

Immigration and welfare state cash benefits: The Danish case

As mentioned in Section 4 a new Integration Act came into effect in 1999. A first general assessment of the 3 years introductory program contained in the Integration Act can be found in Clausen et al. (2006). The data coverage is up to 2003 and as the introductory program has a duration of 3 years it is no surprise that lock-in effects are still very important regarding the probabilities of getting a job or becoming self provided. Job training in private firms appears (as usual) as the most successful instrument, but it should be kept in mind that other instruments, e.g. language education, has a potential long run positive impact which, for the lack of a sufficiently long observation period, is not captured here. It is interesting to note that self provision in about half the cases is due to the person being provided for by a spouse, and not by getting an ordinary job. In a more recent study on time until regular employment for new immigrants Clausen et al. (2009) use micro data to analyse the impact from participation in labour market programs and in language training. They find a substantial “lock-in” effect from participation in active labour market programs as in the 2006 study, cf. above. The post-program transition to employment is affected significantly and positively only from wage subsidy programs. Regarding the eventual impact from courses improving the language proficiency of newly arrived immigrants, they find a significant and substantial positive impact on the transition to a job.
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The economics of enhancing accessibility estimating the benefits and costs of participation

The economics of enhancing accessibility estimating the benefits and costs of participation

disability as ‘arising from the interaction of a person’s functional status with the physical, cultural, and policy environments.’ Many countries now use the ‘Washington Group Short Set’ questions to produce internationally comparable data about disability and its variation within a population. These questions include for example ‘Do you have difficulty seeing, even if wearing glasses?’ and ‘Do you have difficulty walking or climbing steps?’ (Madans, Loeb & Altman, 2011; Washington Group on Disability Statistics, 2009). Frye (2012) states that Census data such as the Washington Group Short Set responses are often too broad to be useful as a driver of policy change, and in any case there is too much lag between data collection and its publication for it to be a political lever. In some countries (including New Zealand), these data about disability are not disaggregated to anything less than national or regional level. Importantly, for this paper, lacking low-level spatial data about people and their diverse abilities means that local authorities who make transport investment decisions have no data at all about differences within their population; they cannot invest in accessibility improvements that would benefit particular groups with any confidence that the investment in that particular location is justified according to relative need.
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The Indirect Fiscal Benefits of Low-Skilled Immigration

The Indirect Fiscal Benefits of Low-Skilled Immigration

of different production functions and labor supply responses. These extensions and the asso- ciated indirect fiscal effects are summarized in Table 1. First, we consider three alternative production specifications that have been utilized in the immigration literature: 1) produc- tion with four imperfectly substitutable education groups and imperfect substitution between experience levels, as utilized by Borjas (2003), 2) production with imperfectly substitutable foreign-born and domestic-born workers, as in Ottaviano and Peri (2012), and 3) production where s+ills are defined by an individual’s position in the wage distribution, rather than their education, as in Dustmann, Frattini, and Preston (2013). We show that our formula extends naturally to these more elaborate production technologies. Next, we combine these expres- sions for the indirect fiscal effects with our empirical quantification of the effective tax rates to calculate the indirect fiscal effects in each setting. For all three specifications, we find annual indirect fiscal effects of the average low-skilled immigrant in the range of $1,000 to $1,870. When we use the same elasticity of substitution between skill levels in all three specifications, the indirect fiscal effects all lie within $250 of each other.
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The indirect fiscal benefits of low-skilled immigration

The indirect fiscal benefits of low-skilled immigration

Robustness There is some controversy in the literature over the appropriate model to ana- lyze and estimate the wage effects of immigration. A natural concern is that the indirect fiscal effects are also sensitive to these modeling choices. Therefore, we extend our model to allow for a variety of different production functions and labor supply responses. These extensions and the associated indirect fiscal effects are summarized in Table 1. First, we consider three alternative production specifications that have been utilized in the immigration literature: 1) production with four imperfectly substitutable education groups and imperfect substitutabil- ity between experience levels, as utilized by Borjas (2003), 2) production with imperfectly substitutable foreign-born and domestic-born workers, as in Ottaviano and Peri (2012), and 3) production where skills are defined by an individual’s position in the wage distribution, rather than their education, as in Dustmann, Frattini, and Preston (2013). We show that our formula extends naturally to these more elaborate production technologies. For all three specifications, we find annual indirect fiscal effects of the average low-skilled immigrant in the range of $1,000 to $1,870. When we use the same elasticity of substitution between skill levels in all three specifications, the indirect fiscal effects all lie within $250 of each other.
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Measurement of Costs and Benefits of Accession to the European Union for Selected Countries in Central and Eastern Europe

Measurement of Costs and Benefits of Accession to the European Union for Selected Countries in Central and Eastern Europe

However strange it may seem the same items are offered as being both costs and benefits accruing from EMU membership: the loss of monetary sovereignty and the consequences of liberalization of capital flows. It is clear that after joining the EMU no country can pursue its own national economic policy, even in the most crucial fields. It will no longer be possible to change exchange rates to offset growing trade deficits or introduce a monetary policy to support economic growth or boost employment (Bárta 1999). 41 Reduction of monetary sovereignty is a fact of life for the countries currently participating in the EMU; however, it is debatable whether the eastern applicant countries will experience a loss or gain on joining the EMU. In his list of benefits Lutkowski included the fact that with a strong and stable euro as its currency Poland would abandon devaluation as an easy means of improving its economic competitiveness yet in another instance (Lutkowski 1997/b) he warns of the dangers deriving from too early a loss of manoeuvring space in economic policy. On the one hand, the EMU prevents governments from making economic policy mistakes, but on the other hand, it hinders the implementation of economic policy measures tailored to an individual country’s specific problem. Let us remain with the example of devaluation cited by Lutkowski. In one approach, it is the wrong route to take out of a balance of payments crisis; it has no lasting effect. In another approach, it is a justified means; it may well help to achieve a more realistic exchange rate by correcting an unsustainable relationship between domestic and foreign prices in a given country.
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Immigration: The European experience

Immigration: The European experience

27 except for Germany 8 . Italy is the country where the children of EU immigrants are relatively more likely to be from “low income” households: they account for less than 2% of all children, but 5.5% of children from low income households. On the other hand, the percentage of children of mixed couples in low income households is lower than the percentage of all children in these households. If belonging to a poor household restricts future opportunities (see e.g. Blanden et al. (2007), Corak (2006), Jäntti et al. (2006), Solon (2002) for evidence), then these numbers suggest that the disadvantage of immigrants, particularly from non-EU countries, which we illustrate in the previous sections, may carry over to their children. Research by Dustmann, Frattini and Lanzara (2012) on the educational attainments of the children of immigrants is partly in line with this: They find that gaps in test scores between children of immigrants and children of natives in different countries are strongly related to their parents’ achievement. However, their results also show that differences in parental background alone do not account everywhere for the entire immigrant-native achievement gap. In traditional immigration countries, like the Anglo-Saxon countries, differences in test score gaps between children of immigrants and children of natives disappear after conditioning on family characteristics. In many European countries, instead, significant differences in test scores between natives and immigrants remain, even after controlling for family characteristics. This suggests that there may be considerable diversity in educational institutions between countries, possibly related to their experience with larger scale immigration.
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Eastward enlargement: Benefits and costs of EU entry for the transition countries

Eastward enlargement: Benefits and costs of EU entry for the transition countries

Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.

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Costs and benefits of differentiated integration: Lessons from the Schengen and Pruem laboratories

Costs and benefits of differentiated integration: Lessons from the Schengen and Pruem laboratories

Defining the Schengen club comprised two main steps and lasted five (!) years: the Saarbruecken accord, the BENELUX memorandum and the subsequent Schengen accord were about negative integration measures; the successive negotiations of the Schengen implementation convention (SIC) set up compensatory measures (of positive integration). The first part concerned the establishment of the club good free movement by abolishing checks at the common borders; the second was about the reduction of external costs caused by this measure. It is revealing that the first accords were essentially agreed upon by ministries of transport and governmental leaders, respectively, whereas SIC was nearly exclusively negotiated by staff of the ministries of interior. Baumann (2006; 2008), for example, interprets the SIC negotiations as a fight by the German law and order officials to re-conquer the agenda once the German chancellery decided to lift the border controls. This explains the heavily security biased nature of SIC and the extraordinarily strong role of officials from the German ministry of interior in defining the SIC agenda and the subsequent outcome of the negotiations. These dynamics also feed into our understanding of the experimentation of the club formation. Obviously, the German chancellor and the French president and their staff could not predict where the process of lifting the border controls would end if one thinks of the Schengen information system (SIS), the Schengen ministers committee, etc.
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The longer-term costs and benefits of different initial teacher training routes

The longer-term costs and benefits of different initial teacher training routes

Since the 1960s, when the push began to make teaching an all-graduate profession, the roles of higher education institutions and schools in initial teacher training (ITT) have been the focus for debate and significant variation in practice, in both undergraduate teaching degrees (BEd) and post-graduate (PGCE) courses. Further policy-making has resulted in a proliferation of training routes, as well as incentives for aspirant teachers. This has been accompanied by sporadic debate about theory and ideology versus practice and ‘craft’, and an associated reduction in the role of universities in teacher training. In 1992 Ken Clarke made it a requirement for all ITT to involve partnerships between HEIs and schools. From then, new routes into teaching were introduced (building on the Articled and Licensed Teacher schemes), including SCITT (school-centred), the Graduate Teacher Programme (GTP) – an employment-based and immediately-salaried route ostensibly aimed at older entrants, and Teach First – an employment-based route aimed at ‘high-flying’ new graduates. The Coalition Government introduced Teaching Schools (which gives well-performing schools a wider professional development role), and School Direct, a school-led route where participating schools contract accredited training providers and then recruit, select and employ their own trainees. Underlying the development of these new routes is a trend towards giving schools ever-increasing responsibility for the development and accreditation of newly-qualified teachers, which looks set to grow if the aims of the recent ‘Educational excellence everywhere’ White Paper are realised.
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Estimating the Costs and Benefits of Local Government Reorganisation: A Case of Korea

Estimating the Costs and Benefits of Local Government Reorganisation: A Case of Korea

The Special Act on City–Rural District Consolidation, the neighbouring city and rural districts can be merged into one bigger local authority following a referendum of the voters within the two areas; and as a result, as was mentioned earlier, the 40 consolidated local authorities were created, with financial incentives from central government. Up until now, however, there has been no case, in Korea, of the creation of a unitary local authority, partly because the two-tier, province–district system has been embedded in Korean administrative culture for more than 500 years, and partly because politicians and officials, even in central government, had not attempted local government reorganisation accompanying tier-change, since they know that tier- change reform provokes powerful and indeed uncountable resistance from local politicians, and local government employees in particular. The present government, which came to office in 2003, also knows that local government reorganisation incurring tier-change would be politically burdensome and administratively difficult to implement. However, the Government, which has been focusing on decentralisation and government innovation since it came to power, has decided to support Jeju Province in its move to become a unitary local authority with more autonomous power and special status, in the hope that if such an authority is created, it will become more competitive, both economically and socially. Table 1 shows the main characteristics of Jeju Province.
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The European immigration crisis: a review

The European immigration crisis: a review

Issues including the immigration flows, increased diversity of the society, and alienation of parts of the population are not necessarily new phenomena for the European Union. As an illustration, Frontex , the EU Agency for the Management of Operational Cooperation at the External Borders, was founded in 2004 in the light of the uncontrolled immigration from Africa to control the cooperation between national border guards securing its external borders, or EUROSUR (the European Border Surveillance System) has come to effect since 2013.
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Immigration and Careers of European Workers: Effects and the Role of Policies

Immigration and Careers of European Workers: Effects and the Role of Policies

such framework, changes in the supply of immigrants in the cell are related to changes in wages of natives, interpreted as changes in their marginal productivity. In presence of wage rigidities or upward sloped labor supply, immigration may also cause changes in native employment. Most of the studies use annual (short- run) or decade (long-run) variation in immigrant population (or employment) to identify the effects on average native wages or aggregate employment. The data used in those studies are "pseudo-panels". They are constructed using repeated cross sections of individuals (obtained from Census or Labor force survey) organized in "cells" such as regions, skill or region/skill groups and then each cell (not the individuals) are followed over time. Some papers specifically analyze the dynamic effect of immigration on natives. For example, Cohen-Goldner and Pasermann (2011) distinguish between the short-run and medium-run effects of immigrants on wages and employment of natives by considering the effect of immigrants arrived at different times in the past. Peri and Sparber (2009) and D’Amuri and Peri (forthcoming) focus on the "dynamic response" of natives, by analyzing whether natives move to more complex jobs as a consequence of immigration. Natives may respond to immigration by changing their specialization (as suggested in Peri and Sparber 2009) or by investing in firms’ specific skills (as suggested by the wage dynamics in Cohen-Goldner and Pasermann, 2011) or by undertaking other changes. These responses may take some time and may have effects even when the individuals move out of the original labor market (or upgrade from the original occupation) where the competition with immigrants first affected them.
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Cooperation, discounting, and the effects of delayed costs and benefits

Cooperation, discounting, and the effects of delayed costs and benefits

Hence, it seems to be indeed the case that subjects in LaterNow who contribute maximally irrespective of the contributions of others do so because of their strong degree of impatience rather than, e.g., their concern for social efficiency. Note that while the model presented in Section 2 can well capture the shift in cooperation types from free-riders to full contributors in LaterNow, the effects observed in NowLater (no change in the distribution of types but a decreased willingness to match others’ contributions among conditional cooperators) seem inconsistent with that model. The reason is that due to its linearity, the model is inconsistent with any type of imperfect conditional cooperation; it can only predict shifts between full free-riding, perfect conditional cooperation, and un- conditional full contribution. The effects observed in NowLater, however, are reconcilable with a more general version of that model, which allows payoff inequalities to enter utility in a non-linear way. In this case, instead of having sharp cut-off values for the degree of advantageous inequity aversion, different levels of β would determine different “degrees of conditional cooperation”, which in the case of delayed benefits (as in NowLater ) might then be attenuated or accelerated depending on subjects’ degree of impatience.
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The impact of welfare benefits on natives' and immigrants' attitudes towards immigration

The impact of welfare benefits on natives' and immigrants' attitudes towards immigration

and immigrants, while in columns labeled “iv-probit” we present results after instrumenting. The coefficients for the control variables, which we do not report in table 2, but in table A5 in the annex, all have the expected sign when statistically significant. They indicate that natives’ values and labour market positions are the most important non-economic determinants of their attitudes towards immigration, while household structure and the age and education structure of immigration to a region are less important. Natives who attach a higher importance to treating all persons equally and to understanding different opinions are more likely to be in favour of immigration, while natives who put a stronger emphasis on the importance of safe surroundings and on following religious or family traditions have less favourable attitudes towards immigration. Furthermore, natives that are more satisfied with their lives and the economic situation in their country as well as natives who have at least one immigrant parent, are religious, in education or live in urban areas are more likely to favour immigration. By contrast, individuals with stronger political affiliation to the right and who are out of the labour force or retired are significantly more likely to oppose immigration. Gender, age, marital status, and the presence of children in a household are uncorrelated to immigration attitudes. Similarly, the average age of immigrants and the proportion of skilled immigrants in a region are insignificant.
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Regional disintegration in the Soviet Union: Economic costs and benefits

Regional disintegration in the Soviet Union: Economic costs and benefits

Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.

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Immigration and innovation in European regions

Immigration and innovation in European regions

Considering the first three mechanisms through which immigration may enhance innovation, population size, population density,and population share effects of immigration result from the fact that immigration boosts local aggregate demand. Such demand is partially met through additional imports, but predominantly through greater levels and greater variety of local production (Mazzolari and Neumark, 2009). While such output growth in the short run may be met by greater capacity utilization and additional labour supply (predominantly provided by the immigrants themselves), in the long run additional investment will be needed. Such new investment will embody the latest technologies, and the associated investment behaviour of firms will encourage product and process innovation. Moreover, the resulting expansion of the host economy may lead to firm growth or additional start-up firms, which will also again boost innovation (e.g. Freeman and Soete, 1997). Moreover, migrants, being predominantly attracted to the larger urban areas where job opportunities are the greatest, contribute to urban population growth, and thereby strengthen the forces of agglomerationwhich, as we noted in the Introduction,encourages greater innovation. Given that in the modern knowledge economy technological change is an endogenous process, in whichthe production of new ideas is a function of the number of ideas workers (e.g.Lucas, 1988), the global competition for highly-skilled migrants has been intensifying. Borjas (1999) argues that immigrants are not randomly selected samples from sending countries. There is a process of self- selection in which the skilled workers who migrate may also be more entrepreneurial and less risk averse, and considerably younger (e.g. Kloosterman and Rath, 2003; Poot, 2008). Professional migrants often make multiple moves over their life course or even commute between multiple residences. This mobility behaviour generates spillover benefits to host countries in terms of transfers of new ideas and work practices. In sum, their self-selection and the host country entry regulations serve jointly as a pre-arrival melting pot.Hence, the fourth mechanism through which immigration boosts innovation is through the way in which they change the human capital stock of the host regions, by bringing in new ideas and knowledge.
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