Corrado Giulietti

Youth Unemployment and Vocational Training

This paper focuses on the determinants of the labor market situation of young people in developed countries and the developing world, with a special emphasis on the role of vocational training and education policies. We highlight the role of demographic factors, economic growth and labor market institutions in explaining young peoples transition into work. We then assess differences in the setup and functioning of the vocational education and training policies in major world regions, as an important driver of differential labor market situation of youth. Based on our analysis we argue in favor of vocational education and training systems combining work experience and general education and give some policy recommendations regarding the implementation of education and training systems adapted to a countrys economic and institutional context.

The RUMiC longitudinal survey: fostering research on labor markets in China

This paper describes the Longitudinal Survey on Rural Urban Migration in China (RUMiC), a unique data source in terms of spatial coverage and panel dimension for research on labor markets in China. The survey is a collaboration project between the Australian National University, Beijing Normal University and the Institute for the Study of Labor (IZA), which makes data publicly available to the scientific community by producing Scientific Use Files. The paper illustrates the structure, sampling frame and tracking method of the survey, and provides an overview of the topics covered by the dataset, and a review of the existing studies based on RUMiC data.JEL codesC81; J01; P36; R23

Self-Employment of Rural-to-Urban Migrants in China

This paper focuses on the determinants of self-employment among rural to urban migrants in China. Two self-selection mechanisms are analysed: the first relates to the manner in which migrants choose self-employment or paid work based on the potential gains from either type of employment; the second takes into account that the determinants of the migration decision can be correlated with employment choices. Using data from the 2008 Rural-Urban Migration in China and Indonesia (RUMiCI) survey, a selection model with endogenous switching is estimated. Earnings estimates are then used to derive the wage differential, which in turn is used to model the employment choice. The procedure is extended to account for migration selectivity and to compare individuals with different migration background and employment histories. The results indicate that self-employed individuals are positively selected with respect to their unobserved characteristics. Furthermore, the wage differential is found to be an important driver of the self-employment choice.

Editorial: IZA Journal of Migration

We are delighted to introduce to you the IZA Journal of Migration (IZAJOM), the first online journal entirely dedicated to the economics of migration. Nowadays the migration phenomenon has reached critical complexity; hence, we believe that it is time to provide an outlet devoted to promote publication excellence and to foster the public debate in the field of migration economics.

The Economic Payoff of Name Americanization

We provide the first evidence of the magnitude and consequences of the Americanization of migrants’ names in the early twentieth century. We construct a longitudinal data set of naturalization records, tracking migrants and their naming choices over time. We consistently find that migrants who Americanized their names experienced larger occupational upgrading than those who did not. Name Americanization embodies an intention to assimilate among low-skilled migrants and reveals the existence of preferences for American names within the labor market. We conclude that the trade-off between individual identity and labor market success was present then as it is today.

Is the Minimum Wage a Pull Factor for Immigrants

This paper studies the impact of the minimum wage on immigration. A framework is presented in which inflows of immigrants are a function of the expected wage growth induced by the minimum wage. The analysis focuses on the US minimum wage increase of 1996 and 1997, using data from the Current Population Survey and the census. The estimation strategy consists of using the fraction of affected workers as the instrumental variable for the growth of expected wages. The findings show that States in which the growth of expected wages was relatively large (around 20%) exhibit inflow rate increases that are four to five times larger than States in which average wages grew 10% less. Placebo tests confirm that the policy did not affect the immigration of high wage earners.

Entrepreneurship of the Left-Behind

While there is evidence that return migration promotes entrepreneurship and self-employment of those who migrated, previous studies have not focused on whether migration provides the same benefits to individuals who did not migrate. Using a unique dataset that provides information on both current and return migrants in rural China (RUMiC), we investigate the impact of migration on entrepreneurship among individuals with no migration experience. We explore the self-employment choices of individuals who live in households with return migrants and individuals who live in households that have migrants currently in the city, comparing them with individuals living in non-migrant households. Our methodology allows us to control for the potential endogeneity between the migration and self-employment decisions. The results show that return migration promotes self-employment among household members who have not migrated. However, left-behind individuals are less likely to be self-employed when compared with those living in non-migrant households.

Sibling Influence on the Human Capital of the Left Behind

While a growing literature has analyzed the effects of parental migration on the educational outcomes of children left behind, this study is the first to highlight the importance of sibling interactions in such a context. Using panel data from the RUMiC Survey, we find that sibling influence on school performance is stronger among left-behind children. Hence, parental migration seems to trigger changes in familial roles and sibling effects among children. However, it is primarily older sisters who exhibit a positive influence on their younger siblings. We corroborate our results by performing a series of tests to mitigate endogeneity issues.

Labor market issues in China

Polachek, S.W. - IZA, Institute for the Study of Labor, Bonn, Germany Tatsiramos K. - Binghamton University, SUNY, NY, USA