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Millions of people—nearly 3 percent of the world’s population—no longer live in the country where they were born. Every day, migrants enter not only the United States but also developed countries without much of a history of immigration. Some of these nations have switched in a short span of time from being the source of immigrants to being a destination for them. International migration is today a central subject of research in modern labor economics, which seeks to put into perspective and explain this historic demographic transformation. Immigration Economics synthesizes the theories, models, and econometric methods used to identify the causes and consequences of international labor flows. Economist George Borjas lays out with clarity and rigor a full spectrum of topics, including migrant worker selection and assimilation, the impact of immigration on labor markets and worker wages, and the economic benefits and losses that result from immigration. Two important themes emerge: First, immigration has distributional consequences: some people gain, but some people lose. Second, immigrants are rational economic agents who attempt to do the best they can with the resources they have, and the same holds true for native workers of the countries that receive migrants. This straightforward behavioral proposition, Borjas argues, has crucial implications for how economists and policymakers should frame contemporary debates over immigration.
An empirical investigation into the impact of immigration on institutions and prosperity.
This thesis consists of four self-contained papers within political economy and economic sociology. The first paper studies how the 2015 refugee wave impacted the vote share of the anti-immigration Sweden Democrats (SD) during the 2018 Swedish parliamentary elections. I find that while there is an overall positive effect of immigration on the SD votes, the magnitude of the effect differs considerably depending on pre-influx municipal characteristics.??In the second paper, I study how releases of radioactive fallout from the 1986 Chernobyl nuclear accident affected environmentalist voting in subsequent elections in Sweden. The results show that in municipalities affected by fallout, green voting increased. The Chernobyl premium om the green vote remained for around one decade after the accident. Detailed-individual level survey data suggests that opposition to nuclear power increased in affected areas after the accident.??The third paper examines how implementing blended learning at university affects grade outcomes when compared to online and campus teaching. The results show that female students with affluent parents were the relative winners of blended learning, both compared to other groups who were subject to blended learning, but also compared to their own performance when all teaching is on campus. Survey data suggests that this group of students have broader social networks, which facilitates communication with peers and improves grades.??In the fourth paper, I analyze how the academic performance of university students is affected by their own and their peers' socioeconomic status and beauty. The results suggest that a student's own socioeconomic status and beauty affect grades positively, and that these traits in peers also have a positive impact on grades. For the peer effects, I provide evidence for both a direct spillover channel, and for an indirect channel according to which peer beauty improves well-being among students.
This dissertation is comprised of three essays that focus on high-skilled migrations and how these are influenced by public policy and their economic impacts. The first essay links finance theory to labor economics and political economy in the context of migration and immigration policy. Using event study analysis, I measure the impact of immigration policy on the profit of employers and shareholders, in particular the American Competitiveness and Workforce Improvement Act (ACWIA) of 1998 nearly doubled the available number of H-1B visas for skilled foreign workers in FY 1999. The empirical results show that top H-1B visa user industries enjoyed significant and positive excess returns with the passage of the ACWIA of 1998, while industries with little need for H-1B visas experienced no significant changes. Robustness checks including international comparisons, nonparametric modeling and a sample-split Chow structural break test support the results. In the second essay, I investigate the findings of the first essay by employing two multi-factor models-Fama-French three-factor model and Fama-French-momentum four-factor model. Fama and French (1993) claim that the three-factor model does a better job isolating the firm-specific components of returns. In contrast, Campbell, Lo and Mackinlay (1997) argue that in practice the gains from employing multi-factor models for modeling the normal returns are limited. The results support the point of Campbell, Lo and Mackinlay (1997). In the third essay, I use microdata on immigrants from the 1990 and 2000 U.S. censuses to examine the growing earnings differentials between foreign-born Taiwanese and all other foreign-born immigrants. By decomposing the earnings gap, I show that over one-third of this gap (36% in 1990, 37% in 2000) can be attributed to the better endowment (higher education) of the Taiwanese. Among foreign-born Taiwanese from 1960 to 1999, 60% of the master degrees, 80% of the professional degrees and 92% of the doctorate degrees were earned in the United States. The growing numbers and rising percentage of U.S. earned degrees among the Taiwanese indicate their higher earnings relative to other immigrants in 1990 and 2000 can be attributed to their successful economic assimilation into the United States.