Macroeconomic and microeconomic effects of migration

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This book presents three interconnected studies focusing on migration. The first chapter offers a general overview of the findings. The second chapter critiques existing model specifications that link high ethnic fractionalization to lower growth, revealing they cannot fully account for the negative effects observed in the 1990s and Sub-Saharan Africa's growth experience. It also provides empirical evidence suggesting that ethnic fractionalization can positively impact nations that are ethnically diverse due to immigration. The third chapter explores the behavioral effects of inter-family transfers, a topic that remains under-researched. It analyzes the incentive effects of these transfers in Indonesia using advanced econometric techniques and distinguishes between different employment sectors. The analysis indicates that such transfers may negatively affect work effort in the informal economy. The fourth chapter examines changes in income portfolios of rural households in Ghana during the 1990s, challenging the notion of stagnation. It reveals significant economic transformation, with households diversifying their livelihoods through increased migration and local non-farm employment. These diversification choices appear to be largely driven by desperation rather than new opportunities, particularly concerning migration.