Matthew Roskruge, Jacques Poot (p)

David Maré

In this paper, we present evidence from quantitative research over the last decade on how the social capital of individuals in Aotearoa New Zealand is associated with birthplace and, for migrants, years since migration. We also consider the effects of spatial sorting and ethnic diversity on social capital formation. Aotearoa New Zealand has one of the highest rates of immigration in the OECD and, consequently, one of the highest shares of foreign-born individuals in the population. Additionally, the population is characterized by high ethnic diversity and a large indigenous population, with Māori representing 17 percent of the population. Using several data sources, we measure social capital by focusing on participation and volunteering in a range of community activities, perceptions of safety and inclusion, and voting in elections. Regression modelling shows that, as expected, migrants have little local social capital upon arrival. However, differences between their social capital and that of native-born individuals reduce considerably as the duration of residence in Aotearoa New Zealand increases. When the migrant share in a region is larger than the national average, migrants invest less in bridging social capital. Migrant clustering within a region increases their investment in bonding social capital. Bridging activities are associated with better employment outcomes. Less than one in five respondents in the utilized survey data report discrimination, and for migrants, discrimination declines with years of residence. However, the trend in discrimination has been upward over time and particularly affects non-European migrants and persons identifying with Māori and Pacific Peoples ethnicities. Residential location matters. Greater ethnic diversity is associated with the perception of a less safe neighbourhood, but individuals in ethnically diverse regions experience relatively less discrimination. Additionally, there is more involvement in elections in such regions. In contrast, greater ethnic polarisation in regions is associated with less civic engagement and more discrimination.

Martina Dal Molin (p), Claudio Di Berardino, Adriana Carolina Pinate

Jacques Poot

High-skilled migration has always attracted the attention of scholars, particularly due to the recognized relevance of human capital in the current knowledge-based society. In the extant literature two gaps emerge. First, most studies focus on graduates, neglecting PhD holders who represent migrants with the highest level of education and, potentially, able to generate important knowledge spillover. Second, concerning the attractiveness of destinations, literature focuses mainly on economic factors, while other social and institutional factors have been neglected yet. This research focuses on the mobility behaviour of PhD holders in Italy, taking an emerging perspective, that of Institutional Quality which, in turn, is fundamental to ensure quality of services and effective governance. Two research questions are addressed: i) does IQ represent a pull factor for PhD holders’ mobility? ii) which specific IQ factors affect their migration behaviour? The research setting is Italy, which is an interesting case for migration studies given the historical divide between the North and the South increased by the (selective) migration of human capital. Two data sources are used: the most recent available survey on the employability of PhD holders carried out by ISTAT in 2018 and referring to PhD who hold degree in 2012 and 2014 and the Italian IQ index at the provincial level. Concerning the econometric strategy, a probit Model to overcome possible self-selection problems is applied. We also control for individual characteristics (gender, age, faculty, degree grade, family income, parents’ education), and for macroeconomic variables both in origin and destination provinces.

Olle Westerlund (p), Kent Eliasson

Martina Dal Molin

We estimate the effects of migration on earnings among university graduates moving up and down within the regional population size hierarchy using Swedish longitudinal population register data. We analyse moves by origin-destination sizes of regional populations and by individual ability. Our findings indicate consistent positive self-selection on ability-related variables in upward migration in the urban hierarchy (from smaller to larger labour markets), and negative or insignificant self-selection in downward migration. The results show positive initial earnings gains for all origin-destination flows of upward migration. The effects of upward migration increase with ability but are positive for both low- and high-ability graduates. Downward migration is generally associated with negative effects on earnings but the effects are smaller in magnitude. Our findings are generally consistent with theories of agglomeration economies and higher productivity of labour in larger and densely populated regional labour markets.

Charlotta Mellander (p), Sofia Wixe, Jose Lobo

Olle Westerlund

Several studies have examined long-term neighborhood effects on educational attainment, income, employment, and health outcomes, but there have been few studies specifically focusing on occupational choices. Together with early childhood, adolescence has been identified as a critical period during which individuals’ personalities and behavioral traits are formed. It constitutes a phase in one’s life cycle when we can expect to be more influenced—both in the short and long term—by our neighborhood environment. While cognitive abilities and general behavioral patterns may form during early youth, it is typically during later adolescence and the early stages of adulthood that individuals start to think more critically and practically about educational choices and preferred career paths.

The purpose of this paper is to examine the long-term consequences of residing in disadvantaged neighborhoods during adolescence (at age 16) on the occupational choices of males in the 40-44 age group, which represents their prime working years. Specifically, we aim to determine how socioeconomic and ethnic segregation affect individuals’ likelihood of obtaining high-status jobs—those occupations that offer the highest incomes.

Our research reveals that the characteristics of residential neighborhoods during adolescence significantly impact the probability of securing a high-skilled job later in life. Despite the greater influence of an individual’s own cognitive ability, educational level, and father’s education, residing in a marginalized neighborhood during adolescence tends to negatively influence the likelihood of attaining a more advanced occupation as an adult. Specifically, growing up in a neighborhood characterized by low educational and income levels implies a reduced likelihood of being employed in occupations requiring higher levels of education later in life.

David Maré (p), Richard Fabling, Dean Hyslop

Charlotta Mellander

Past research finds evidence that workers’ labour market outcomes are enhanced if they live in areas with greater job opportunities and employment density. Using two alternative measures of the employment density and job opportunities faced by workers in the local labour market in which they were displaced, this paper analyses their effects on the subsequent migration decisions and labour market outcomes of workers who involuntarily lose their jobs as part of a firm closure or mass layoff event. Our analysis finds only limited support for the spatial mismatch hypothesis. The results imply that workers displaced from jobs in areas with greater employment density or job opportunities are more likely to emigrate, are less likely to be reemployed following layoff and have lower subsequent earnings, although earnings are higher conditional on being employed. However, if employed, workers displaced in areas with more opportunities are less likely to have moved area, but more likely to have changed industry, and have a more similar job to that from which they were displaced.