Staff Seminar

Poverty Reduction, Equity, and Development - Toman Barsbai & Kacana Sipangule

06 Jun 2017

From the IFW event series: Research Seminar

14:00

15:00

Institut für Weltwirtschaft

Speaker

Toman Barsbai (Kiel Institute, RA "Poverty Reduction, Equity, and Development")

Abstract

The vast majority of immigrants to the OECD are family migrants. Yet, the mechanisms that drive family-based migration remain unexplored. This paper presents the first comprehensive economic analysis of family-based migration. We first develop a stylized model that lays out the key mechanisms. We predict family-based migration to (i) increase in the income of the potential sponsor in the country of destination, (ii) decrease in the domestic income of family members in the country of origin, and (iii) decrease in the amount of remittances. We then test these predictions using administrative data on the universe of permanent Filipino migrants to the United States. A unique feature of this dataset allows us to link migrants to their sponsors and reconstruct family networks. For identification, we exploit the fact that obtaining a family-based immigration visa takes several years. Hence, the conditions a Filipino migrant faces upon departure in the Philippines and upon arrival in the US are beyond her control. Using this timing of migration that creates exogenous variation in key variables, we provide evidence that is consistent with our theoretical predictions.

Authors

Toman Barsbai (Kiel Institute) — Andreas Steinmayr (Ludwig-Maximilians-Universität Munich) — Christoph Winter (Ludwig-Maximilians-Universität Munich )

Speaker

Kacana Sipangule (Kiel Institute, RA "Poverty Reduction, Equity, and Development")

Abstract

We investigate how the encounter of two economic and farming systems that are seemingly at odds with each other alter competitive behavior and level off the gender gap for small scale farmers in rural Zambia. Using experimental economic methods, we find that study participants that are traditionally dependent on communal subsistence farming systems make more competitive decisions when they are exposed to large-scale, capital-intense and market-oriented farming systems. These results hold for both adults and children that have been exposed to these large-scale farming systems. The effect is remarkably strong for female participants in villages that are exposed to market-oriented farming and even closes the gender gap associated with the willingness to compete. Moreover, we find that competitive behavior is also positively affected by the extent to which subsistence farmers sell their produce in local markets. Taken together, our results provide important insights for understanding how societal arrangements influence individuals’ preferences in small scale societies.

Authors

Kacana Sipangule (Kiel Institute) — Menusch Khadjavi (Kiel Institute, Kiel University ) — Rainer Thiele (Kiel Institute)

Poverty Reduction, Equity, and Development - Toman Barsbai & Kacana Sipangule

The Economics of Family-based Migration

Speaker

Abstract

Authors

Market Exposure Increases Smallholders’ Competitive Behavior and Closes the Gender Gap

Speaker

Abstract

Authors

Prof. Dr. Toman Barsbai

Dr. Kacana Khadjavi

Institution

Do Scientists Tell the Truth? Global Experimental Evidence — Menusch Khadjavi

Foreign Divestment – Crisis or Chance for China’s Innovation Edge? — Holger Görg

International Development

Kiel Institute for
the World Economy