Macroeconomic and Microeconomic Effects of Migration

This book consists of three major studies, which are connected through the topic of migration. The first chapter gives a general overview of results. The second chapter shows that the model specifications, which connect high ethnic fractionalisation to lower growth, cannot fully explain the negative ethnic fractionalisation effect of the 1990s and Sub-Saharan African growth experience. Furthermore, an empirical investigation provides evidence that ethnic fractionalisation has a positive effect in a nation which is ethnically diverse due to immigration. The third chapter sheds light on the behavioural effects of inter-family transfers, which is still rare. Incentive effects of inter-family transfers in Indonesia are analysed with improved econometric techniques. Moreover, different sectors of employment are distinguished in the analysis. The empirical analysis indicates that transfers seem to have an adverse influence on work effort in the informal sector of the economy. The fourth chapter analyses changes in income portfolios of rural households and its determinants for the case of Ghana in the 1990s. Contrary to common beliefs, rural Ghana has seen major economic transformation, as households increasingly diversify their livelihoods by both increased migration and more local non-farm employment. These diversification decisions seem to be driven to a large extent by desperation rather than new opportunities, in particular with regard to migration.