↳ Immigration

May 19th, 2020

↳ Immigration

Plate Study

STABLE SHOCK

Remittances across contexts

Among the many corona-induced shocks rippling through the global economy is the crash in remittance payments to developing countries. The World Bank predicts that remittance flows will fall 20% this year—a decline of $100b—largely as a result of shutdowns and wage losses in the global north. The politics of remittances are complex: the scholarly literature both touts the positive development effects of countercyclical cash inflows, and questions the effects of a system that supports consumption at the expense of longer-term economic development.

In a fascinating study on remittances from GCC countries—where migrant workers tend to have few rights while making up a large share of the population—FAISAL Z. AHMED looks at the political effects of remittance economies.

"Using duration models of government turnover for a sample of 97 countries between 1975 and 2004, this article demonstrates that the combination of aid and remittance inflows can empower governments in autocracies to survive longer. The link between the effects of foreign aid and remittances on government survival hinges on the fact that these inflows of money constitute forms of unearned foreign income that a government can potentially exploit for nefarious purposes. This is achieved via two channels. In the first, governments direct some foreign aid to finance patronage goods (income effect). In the second, governments respond to shocks in unearned and largely untaxable household income (i.e., remittances) by diverting expenditures from the provision of welfare goods in favor of patronage goods (substitution effect). My findings suggest that domestic political institutions (and the incentives they generate for governments) mediate the impact of aid and remittance inflows on the quality of governance and the endurance of governments in autocracies."

Link to the paper.

  • A 2019 analysis from the Financial Times provides an excellent overview of remittances to emerging market economies. Link. Part of a FT series on remittances, including case studies on Zimbabwe and Nepal, and reporting on the nations attempts to issue "diaspora bonds" to attract the earnings of expatriate workers. Link to the series.
  • A paper by Muhammed Tariq Majeed looks at the effects of remittances on poverty across 65 countries from 1970-2008. Link. Relatedly, a 2015 paper by Phanindra Wunnava et al looks at the impact of financial liberalization on remittances across 84 countries from 1986-2005, and finds mixed results: increased economic freedom in the financial sector has a positive impact, while improved robustness of financial markets has a negative and lagged effect. Link. h/t Alison Oh
  • A 2011 paper by Rui Esteves and David Khoudour-Castéras examines remittances and capital flows in the European periphery from 1870-1913. Link.
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November 12th, 2019

Hanging Scheme

TEN BILLION HOURS

Administrative burden and welfare politics

In addition to lagging behind many European economies in the breadth, amount, and quality of welfare provision, the United States also exhibits relatively low rates of take-up among the benefits it does make available. Non-take-up rates can be accounted for—at least in part—by the various bureaucratic barriers that welfare recipients face; multiple qualitative studies have documented the humiliating and arduous nature of applying for benefits. Even in the case of the ostensibly less-burdensome Earned Income Tax Credit, a large share of the transfer is captured by tax preparers.

In their 2019 book, Administrative Burden, Pamela Herd and Donald Moynihan argue that these difficulties are not incidental. Through a close inspection of the administrative design of a series of domestic welfare policies (including the Affordable Care Act, SNAP, and Social Security) they demonstrate that difficulty accessing benefits is a core, and intentional, feature of America's welfare state.

From the book's introduction:

"Burdens matter. They affect whether people will be able to exercise fundamental rights of citizenship, such as voting; they affect whether people can access benefits that can improve quality of life, such as health insurance. Burdens can alter the effectiveness of public programs. Ultimately, administrative burdens are the fine print in the social contract between citizens and their government.

Administrative burdens are the product of political choices. In many cases, political actors see burdens as a policy tool to achieve ideological goals. Such choices are demonstrated by the maintenance of burdens even when changing circumstances call for governments to minimize them: The failure of the American administrative state to adapt Depression-era burdens on immigrants from Europe is one example of how not acting is itself a choice. Once the war began, Congress and the State Department increased restrictions under the justification that immigrants posed a security threat. In 1943, the new State Department visa application was four feet long."

Link to the book, and link to a January interview with the authors on the New Books Network.

  • Via a review of Herd and Moynihan's book: the Information Collection Budget report from the OMB, which estimates that "the public spent an estimated 9.78 billion hours on federal paperwork in 2015, a net increase of 350 million burden hours from 2014." Link.
  • Francis Fox Piven and Richard Cloward made a powerful case for non-take-up rates as a central clarifying element of the American welfare system: their 1971 book, Regulating the Poor, advocated mass enrollment in welfare programs to reveal the inadequacy of the benefits system. Link to the book, link to seminal 1966 essay that first proposed the "Cloward-Piven Strategy."
  • "This article explores the relationship between revolution and the bureaucratization of tax administration in early modern England and France." Edgar Kiser and Joshua Kane on the history of bureaucracy. Link. Tangentially related: a "history of file-keeping and bureaucratic paperwork in Maoist China" by Jian Ming Chris Chang. Link.
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February 24th, 2018

The Conquest of Space

DEFERRED ACTION

On the effects of DACA

Last week we linked to a paper that outlines the effects of DACA status on educational attainment and productivity:

"High school graduation rates increased by 15 percent while teenage births declined by 45 percent.… College attendance increased by 25 percent among women, suggesting that DACA raised aspirations for education above and beyond qualifying for legal status."

Given reader interest in that paper, we've compiled an overview, inspired by current events, of DACA-related studies across a range of domains.

  • On the economic effects of legal status for DREAMers, including the modeled impact of the DREAM Act: “We estimate DACA increased GDP by almost 0.02% (about $3.5 billion), or $7,454 per legalized worker. Passing the DREAM Act would increase GDP by around 0.08% (or $15.2 billion), which amounts to an average of $15,371 for each legalized worker.” Link.
  • The Cato Institute estimates the fiscal impact of the elimination of DACA, inclusive of projected productivity declines and enforcement costs: “The United States economy would be poorer by more than a quarter of a trillion dollars.” Link.
  • A study finds DACA moved 50 to 75 thousand unauthorized immigrants into the labor force while increasing incomes for immigrants at the bottom of the income distribution. Using these estimates, the author contends that the (now defunct) DAPA, which targeted unauthorized parents of US citizens and LPRs for legalization, would move over 250 thousand unauthorized individuals into employment. Link. Another finds a 38% reduction in the likelihood of poverty for DACA-eligible immigrants. Link.
  • As a complement to the above linked paper on education investment, more fine-grained results on education outcomes for DACA recipients: “the effect of DACA on educational investments depends on how easily colleges accommodate working students.” Link.
  • On the mental health outcomes of children of DACA recipients. Link. On the health outcomes for DACA recipients versus their unqualified DREAMer counterparts. Link. On Medicaid use in mixed-status families, and the effects of deportation risk thereon. Link.
  • Again from Cato, a report on the IRCA (alias "Reagan amnesty") reviews several studies of the economic effects of that 1986 law, which paired legalization for close to three million unauthorized immigrants with increased border security and employer verification. Alongside specific takeaways regarding wages and tax revenues for/from the population that gained legal status (increases in both), a larger claim emerges: legalization programs are most sensible "within the context of comprehensive immigration reform." Link. For more on the Reagan Amnesty and its legacy, see this report from the DHS and this post from the Migration Policy Institute.
  • Vox’s Dara Lind, one of the few reliably accurate mainstream reporters on immigration law and policy, gives an overview of the DREAMer generation: “It’s the combination of settledness and the difficulty of getting legal that make DREAMers generationally unique in the history of US immigration policy.” Link. An idea discussed in that post—that increased border enforcement paradoxically kept migrants in the U.S.—is given depth by Princeton sociologist Douglas Massey here and here. For more on the relationship between immigration law, increased enforcement, and the growth of the unauthorized population, see this paper, this book, and this article.
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