The Economics of Immigration Beyond the Cities : Theoretical Perspectives and Empirical Insights

This book explores how migrants and refugees can revitalise peripheral regions and communities economically. The extent to which migrants stimulate the economic activities of these regions through labour market participation, entrepreneurship, innovation and consumption is examined theoretically and empirically for the EU as a whole, as well as through empirical case studies that highlight the impact of migration at macro, company, and individual levels. A particular focus is given to the economic consequences of Third Country Nationals to places beyond the cities, i.e. the peripheral and remote regions of Europe. This book aims to provide insight into the role of migrations in low productive and labour-intensive regions. The authors provide innovative policy recommendations to stimulate the positive economic consequences of immigration to places beyond the cities. It will be of interest to students, researchers, and policymakers working within labour economics and migration and integration policies. Preface 5 Contents 7 About the Authors 10 List of Figures 12 List of Tables 14 Chapter 1: What Is This Book About? Introductory Positioning 15 1.1 Trends in Migration Flows and Policies 15 1.2 Migration Flows and the Spatial Distribution of Immigrants 17 1.3 Economic Structure and Spatiality 19 1.4 The Economic Effects of Immigration 20 1.5 The Aim and Scope of This Book 24 1.6 Methodological Considerations and Personal Reflections 25 1.7 The Structure of the Book 26 References 27 Chapter 2: Economic Theory and Migration 34 2.1 Determinants of International Migration 34 2.2 Economic Effects of International Migration 37 Costs of Immigration 37 Decrease in Wages 37 Costs of Integration 38 Benefits of Migration 39 The Immigration Surplus 39 Increase in Market Size 40 Increase in Local Consumption 41 Questioning the Assumptions 42 No Fixed Capital 42 No Perfect Substitution 43 Other Aspects 44 Technical Progress and Product Mix 44 Increase of Internal Migration 44 Decrease of Regional Wage Differentials 45 2.3 Previous Empirical Results on the Effects of Immigration 46 Economic Consequences at an Aggregate Level 47 Economic Growth 47 Structural Change and Rationalisation 50 Human Capital 51 Taxes and Fiscal Transfers 51 Economic Consequences at an Individual Level 53 Unemployment and Wages 53 Entrepreneurship and Innovation 55 Housing and Segregation 56 2.4 Summary 56 References 57 Chapter 3: Migration Beyond the Cities 64 3.1 Urban-Rural Divide 64 3.2 Attractiveness of Regions Beyond the Cities for Migrants 65 The Theoretical Perspective 65 Empirical Evidence on the Regional Preferences of Migrants 68 3.3 Effects of Migration on a Regional Level—Empirical Evidence 70 3.4 Analytical Framework on the Effects of Migration in Non-urban Areas 72 The Case of an Excess Demand for Labour 72 The Case of an Excess Supply for Labour 74 Other Aspects 78 3.5 Concluding Remarks and Guiding Research Questions 79 References 80 Chapter 4: Data and Methods 83 4.1 Research Framework 83 4.2 Data 85 4.3 Indicators 86 4.4 Methods 93 4.5 Conclusion 93 References 93 Chapter 5: Immigration Beyond the Cities: An Analysis 95 5.1 Labour Market Needs in Rural Areas—An Ageing Europe 95 5.2 The Potential of Migrants—Educational Attainment Level and Employment Situation 102 5.3 Migrants as Consumers—The Economic Situation of Migrants 108 5.4 Migrants as Innovators?—A Way Out of a Potential Vicious Circle of Underdevelopment 111 5.5 Overall Economic Effects of Migration—TCN and Economic Growth 116 5.6 Do Regions Beyond the Cities Gain Nevertheless?—The Relevance of Fiscal Regulations 122 5.7 Summary 126 References 127 Chapter 6: Policy Considerations 134 6.1 Existing Policies 134 The Idea of an A-spatial Economic Structure 134 Immigrant Settlement Strategies 136 The Labour Market Situation for Immigrants 137 The Role of the European Union 140 6.2 The Needed Policy Design 142 The Economic Heterogeneity of Immigrants 142 The Policy Actors 144 Policy Challenges to Address 146 6.3 Potential Ways Forward 149 A New Classification for Migrants 149 A New System of Distribution of Refugees 151 The Chicken or the Egg: Which Came First? 152 6.4 Concluding Remarks 153 References 155 Chapter 7: The Multi-faceted Implications of Immigration: Reflections and Conclusions 165 7.1 What Are the Main Findings? 165 7.2 Policy Options 167 7.3 Looking Onwards and Outwards 170 7.4 Conclusion 173 References 175 Index 177