Econ 3970
Migration: Economics, Politics & Policy
Professor: Douglas Nelson
Office: 108 Tilton Hall
Office Hours
Email: dnelson@tulane.edu
Webpage: http://nelson.wp.tulane.edu/
As anyone who has even modest knowledge of current politics knows, in the US and virtually everywhere else in the world, migration is a public political issue of first-rate importance. Unfortunately, much of the public discourse around the issue is poorly informed. The good news is that, not surprisingly, migration has been a very active area of research for both labor and trade economists.
In this course we take advantage of this research to enhance our understanding of a number of key elements of international migration: foundations of the individual decision to migrate and the choice of country of immigration; the factors affecting economic performance of migrants in host countries; factors underlying aggregate patterns of migration; the aggregate consequences of migration for host country economies (e.g. wages, unemployment, growth); the effects of policy on migration flows; the political economy of immigration policy; and normative (i.e. welfare) implications of migration on host and home countries. Given the centrality of this issue, most other fields in the social and behavioral sciences also work in this area–especially demography, sociology and political science–and, while we will occasionally draw on work from these areas when they bear directly on our economic analysis, our focus will be the economic analysis of migration.
This is a 3000 level Economics course. I assume that you are comfortable with material from principles of Microeconomic and Macroeconomic (Economics 1010 and 1020). I will also assume that you can follow and reproduce mathematical argument consistent with high school algebra and geometry.
Readings for the course will be drawn from:
Cynthia Bansak, Nicole Simpson & Madeline Zavodny (2021). The Economics of Immigration. New York: Routledge. [BSZ]
A small number of articles and papers. The syllabus contains many (many) more articles that we will be able to read. Required readings are marked by a black square (■), optional readings by an empty circle (○).
There are many (MANY) good books on immigration, but a very nice recent book provides a very interesting take on the issue based on an extraordinary data creation and analysis exercise. It’s not required, but I will note where chapters from the book provide useful context (they will all be marked ○).
Ran Abramitzky & Leah Boustan (2022). Streets of Gold: America’s Untold Story of Immigrant Success. New York: Public Affairs. [AB]
Evaluation: Your performance in this course will be evaluated on the basis of 2 examinations (worth 100 points each); and1 short, policy-evaluation paper (worth 100 points). To receive an A, you must earn at least 90 percent of the points available. To pass the course you must earn at least 60 percent of the points available. Grades between these limits will be determined on the basis of your performance relative to that of the class as a whole.
Both exams will have the following format: about 40% short answer questions and about 60% essays. In general there will be more questions of both types than must be answered, so you will have some choice (though there is often one mandatory question which everyone must answer). Exams must be written in blue books, which you must supply.
The midterm exam will be given on Friday, 14 March. The final examination will only be given on the scheduled date: Saturday, 3 May at 3:30pm (there will be no exceptions so do not make travel plans that conflict with this). Without exception, everyone must take the exams at their scheduled time.
Every student is required to produce a short policy evaluation paper on some aspect of the economics of immigration. These papers must be original work, plagiarism will not be tolerated. Broadly speaking, I expect papers in the 10-15 page range. To ensure that topics are well-established and suitable for the course, I require a proposal due no later than the date of the mid-term exam (Tuesday, 3 October). Late proposals will result in a 10 point penalty to be assessed on the paper’s final score. Policy evaluation papers are due at the last regular meeting of the course (Friday, 30 April). Late papers will not be accepted, and will earn a score of 0 points.
The paper assignment involves identifying either an existing or actually proposed policy dealing explicitly with immigration, giving a clear and accurate description of the legal/institutional details of the policy in question, and providing an economic analysis of the policy using the tools and information from the course as the basis of your analysis (you may, of course, use additional tools, but you are not required to do so). I expect the majority of the paper, i.e. at least 60% to deal directly with the economic analysis (this is an Economics course, after all). Possible topics could include: adoption of a point system where points are allocated to economic benefit (skills, investable resources, etc.); dramatic restriction in number of legal immigrants; dramatic increase in border enforcement; deportation of all illegal immigrants; amnesty for all non-felon illegal immigrants resident in the US for some specific period of time; adoption of an expanded guest-worker program. Again, this list is illustrative, there are many other possibilities. Note, well: the analysis is to be fundamentally positive, not normative. That is, while you might well draw normative conclusions (and those conclusions might be why you actually picked the topic), your paper will be evaluated strictly based on the positive analysis.
Some Good Advice (At No Extra Charge): First, keep current with the reading. Second, ask questions in class. If you read something and it is unclear and then it is unclear during lecture, ask about it. Your classmates will probably thank you. This is one of the few ways, before an exam, that I can gauge how the material is getting across. However, third, avoid questions that can be rendered into the form “are you wasting my time with this material” (e.g. “will this be on the exam”). Fourth, come see me during my office hours. This is another opportunity to get clarification and help on material about which you are unclear. But don’t wait until the last minute, by then it is usually too late.
Tulane/SACS Program & Learning Outcomes
Program outcomes: Relative to the educational objectives developed by the Economics Department to satisfy SACS requirements for accreditation, among other things, in this course the student should:
1. Apply the basic market model to explain and predict price changes in individual markets–in this course, the main application is labor markets, both national and international, though we are also interested in the interaction between labor markets and goods markets in general equilibrium.
2. Identify and assess the opportunity costs involved in any economic activity, whether the decision-maker is a private individual, business firm, or social organization. Individual, firm and governmental decisions relating to immigration will be analyzed in detail.
3. Identify economic issues and problems, gather data needed to evaluate them, and analyze that data to gain insights into economic behavior and formulate possible solutions. As the course objectives state at the beginning of this syllabus, we will be doing all of this with particular reference to international migration.
4. Apply the tools of economic analysis to specific policy issues at a level appropriate to both majors in Economics and the University community more generally. This is an upper level class, so the tools applies to the analysis of immigration and immigration policy are those consistent with such a level.
5. Gain an in-depth understanding of several specialized areas in economics, thereby learning how to apply microeconomic and macroeconomic theory to specific policy issues. Same as (4).
Learning objectives: After completing this course, the student should be able to apply formal and econometric methods to understand:
1. Foundations of the individual decision to migrate and the choice of country of immigration;
2. The factors affecting economic performance of migrants in host countries;
3. Factors underlying aggregate patterns of migration;
4. The aggregate consequences of migration for host country economies (e.g. wages, unemployment, growth);
5. The effects of policy on migration flows;
6. The political economy of immigration policy; and
7. Normative (i.e. welfare) implications of migration and migration policy on host and home countries.
Syllabus
· 13 – 17 January: Course Introduction (Including some review of basic microeconomics)
■ BSZ, Chapter 1
■ AB, Chapter 3
● To Where Do People Migrate?
● 22-24 January: Patterns of International Migration
■ BSZ Chapter 2
● Why Do People Migrate?
● 27-31 January: Determinants of Migration
■ BSZ, Chapter 3
● 3-7 February: Migration Choice (Selection models)
■ BSZ, Chapter 4
● What Happens to Immigrants in the Host Country?
● 10-14 February: Assimilation
■ BSZ Chapter 5
○ AB, Chapter 4
● Optional topic: The Second Generation
■ BSZ Chapter 6
○ AB, Chapter 5
● What Happens (to the Economy) When People Migrate?
● 17-21 February: Labor Market Effects, Theory
■ BSZ Chapter 7
○ Gaston and Nelson (2013). “Bridging Trade Theory and Labour Econometrics: The Effects of International Migration”. Journal of Economic Surveys, V.27-#1, pp. 98-139.
● 24-28 February: Labor Market Effects, Evidence
■ BSZ Chapter 8
○ AB, Chapter 7
○ Card, David. 2009. “Immigration and Inequality.” American Economic Review, 99(2), 1-21.
○ Dustmann, Schönberg and Stuhler (2016). “The Impact of Immigration: Why Do Studies Reach Such Different Results?” The Journal of Economic Perspectives, V.30-#4, 31-56.
● Tulane Mardi Gras Break 2 – 9 March
● 10 & 12 March: Effects on Other Markets
■ BSZ Chapter 9
● Midterm Exam: 14 March
● 17 & 19 March: Fiscal Effects
■ BSZ Chapter 10
● 21 & 24 March: Effects on Source Countries
■ BSZ Chapter 11
● What is a “Good” Migration Policy?: The Normative Analysis of Migration Policy
● 26-31 March: Basic Welfare Economics of Migration
■ Borjas (1995). “The Economic Benefits from Immigration.” The Journal of Economic Perspectives, V.9-#2, 3-22.
■ Clemens (2011). “Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?” The Journal of Economic Perspectives, V.25-#3, 83-106.
○ Borjas (2015). “Immigration and Globalization: A Review Essay.” Journal of Economic Literature, V.53-#4, 961-74.
● 2 & 4 April: Ethics of Migration
■ Sidgwick (1891). “Principles of External Policy,” In The Elements of Politics, 285-315. London: Macmillan. [Canvas]
■ Walzer (1981). “The Distribution of Membership”. in Brown and Shue, eds. Boundaries: National Autonomy and Its Limits. Totowa, N.J.: Rowman and Littlefield, pp. 1-35.
■ Carens (1987). “Aliens and Citizens: The Case for Open Borders”. Review of Politics; V.49-#2, pp. 251-273.
● What Does Actual Immigration Policy Look Like?
● 7 – 14 April: U.S. Immigration Policy
■ BSZ Chapter 13
○ AB Chapter 8
● Where Does Actual Migration Policy Come From?: The Politics of Migration Policy
● 18 & 21 April: What are the Drivers of Anti-Immigrant Politics?
■ Alesina and Tabellini (2024). “The Political Effects of Immigration: Culture or Economics?” Journal of Economic Literature, V.62-#1, 5–46.
○ Gaston and Nelson (2000). “Immigration and Labour Market Outcomes in the United States: A Political-Economy Puzzle.” Oxford Review of Economic Policy, V.16-#3, 104-14.
● 23 & 25 April: Is Immigration a Threat to the Welfare State?
■ Eger, Maureen A. (2022). “Economics or Politics? Assessing Immigration as a Challenge to the Welfare State,” in M. M. L. Crepaz ed Handbook on Migration and Welfare. Edward Elgar Publishing, 45-63.
● 28 & 30 April: Is Immigration a Threat to Democracy?
■ Pevnick (2024). “Immigration, Backlash, and Democracy.” American Political Science Review, V.118-#1, 332-44.
○ Bartels (2020). “Ethnic Antagonism Erodes Republicans’ Commitment to Democracy.” Proceedings of the National Academy of Sciences, V.117-#37, 22752-59.
● Final Exam: Saturday, 3 May at 3:30 pm
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