http://hdl.handle.net/10993/73 Search this channel search https://orbilu.uni.lu/simple-search http://hdl.handle.net/10993/55546 Title: ECONOMIC AND POLITICAL SUSTAINABILITY OF FREE MOBILITY POLICIES <br/> <br/>Author, co-author: Gaponiuk, Nikita http://hdl.handle.net/10993/55166 Title: On the effects of income heterogeneity in monopolistically competitive markets <br/> <br/>Author, co-author: Picard, Pierre M; Kichko, Sergey <br/> <br/>Abstract: Abstract This paper studies the market and welfare effects of income heterogeneity in monopolistically competitive product markets in the context of nonhomothetic preferences. In a closed economy, where richer individuals' expenditures are less sensitive to price change compared to poorer ones', a mean-preserving contraction of income distribution entices firms to charge higher markups, reduce output, and fosters creation of new varieties. General equilibrium effects have a negative impact on poorer individuals and, in specific circumstances, on the whole population. In an open economy with free trade, lower income inequality in one country creates price divergence between trading countries. Lower inequality not only further decreases trade volumes and values but also creates a general equilibrium effect that may negatively affect poor individuals. Finally, general equilibrium effects are shown to be quantitatively nonnegligible. http://hdl.handle.net/10993/53508 Title: Do Potential Migrants Internalise Migrant Rights in OECD Host Societies? <br/> <br/>Author, co-author: Beine, Michel; Machado, Joel; Ruyssen, Ilse <br/> <br/>Abstract: This paper analyses how countries’ provision of migrant rights affects potential mi- grants’ destination choice. Combining data on bilateral migration desires from over 140 origin countries and data on migrant rights in 38 mainly OECD destination countries over the period 2007-2014, we find that potential migrants tend to favor destinations that are more open to the inclusion of immigrants into their society. In particular, better access to and conditions on the labour market, as well as access to national- ity and to permanent residency significantly increase the perceived attractiveness of a destination country. These results are robust across different specifications and hold for subsamples of origin countries as well as of destinations. Moreover, some results vary across types of respondents. Educational opportunities for migrants, for instance, affect the migration desires of individuals aged 15 to 24 years, but less so of individuals in other age groups. http://hdl.handle.net/10993/52969 Title: Income Inequality, Productivity, and International Trade <br/> <br/>Author, co-author: Picard, Pierre M <br/> <br/>Abstract: This paper studies the effect of income inequality on selection and aggregate productivity in a general equilibrium model with non-homothetic preferences and product quality. The model matches the empirical fact that an increase in income shifts one’s consumption towards goods that have higher quality both at the intensive and extensive margins. It also implies a negative relationship between the number and quantity of goods consumed by an income group and the earnings of other income groups. The central result is that a mean-preserving spread of the income distribution negatively affects aggregate productivity through the softening of firms’ selection. In the presence of international trade, this effect is amplified with lower trade barriers or a larger number of trade partners. Furthermore, the model implies that the domestic expenditure shares and welfare gains from trade are constant across income groups. A simple quantitative exercise suggests that an income redistribution like the one induced by the US Federal taxes and transfers raises average productivity by about 3%. http://hdl.handle.net/10993/52968 Title: Currency areas and voluntary transfers <br/> <br/>Author, co-author: Picard, Pierre M <br/> <br/>Abstract: Fiscal integration is recognized as an important issue in determining whether countries establish a common currency area. Fiscal integration between sovereign states is, however, limited by the ability of countries to commit to fiscal transfers. This paper supposes that fiscal transfers between countries must be voluntary and asks how this influences the choice between a currency area and a flexible exchange rate regime. It presents a model with wage rigidity in which, absent transfers, the flexible exchange rate regime is preferred. If there are transfers that equalize consumption, then the choice of exchange rate regime is irrelevant. Nevertheless, the currency area may be preferable if transfers are made voluntarily, because the currency area can sustain greater risk sharing. It is shown that the currency area can be optimal for a plausible set of parameter values. We consider the robustness of the conclusions to some modifications of the model. http://hdl.handle.net/10993/52787 Title: A Meta-Analysis of the Literature on Climate Change and Migration <br/> <br/>Author, co-author: Jeusette, Lionel; Beine, Michel <br/> <br/>Abstract: Recent surveys of the literature on climate change and migration emphasize the important diversity of outcomes and approaches of the empirical studies. In this pa- per, we conduct a meta-analysis in order to investigate the role of the methodological choices of these empirical studies in finding some particular results concerning the role of climatic factors as drivers of human mobility. We code 51 papers representative of the literature in terms of methodological approaches. This results in the coding of more than 85 variables capturing the methodology of the main dimensions of the analysis at the regression level. These dimensions include authors’ reputation, type of mobility, measures of mobility, type of data, context of the study, econometric methods and last but not least measures of the climatic factors. We look at the influence of these characteristics on the probability of finding any effect of climate change, of find- ing a displacement effect, of finding an increase in immobility and of finding evidence in favour of a direct versus an indirect effect. Our results highlight the role of some important methodological choices, such as the frequency of the data on mobility, the level of development, the measures of human mobility and of the climatic factors as well as the econometric methodology. http://hdl.handle.net/10993/52089 Title: Regional heterogeneity and individual characteristics in the development of a European tax policy: historical insights from Luxembourg <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: Luxembourg is currently one of the most politically stable, consensus-oriented, and prosperous countries in the world, characterised by am advanced social market economy, and a level of material wellbeing above the EU average. Its strong fiscal position is well illustrated by a longstanding AAA credit rating, a significant accumulation of government financial assets, and a distinct fiscal approach. In this light, this paper aims to investigate the specific features of the tax system in Luxembourg from a multidisciplinary perspective by analysing historical sources and exploring the development of these particularities over time, their impact on the socioeconomic context and their repercussions for the European integration process, especially in the design and completion of Economic and Monetary Union (EMU). http://hdl.handle.net/10993/51906 Title: Bearing the cost of politics: Consumer prices and welfare in Russia <br/> <br/>Author, co-author: Hinz, Julian; Monastyrenko, Evgenii <br/> <br/>Abstract: In August 2014, the Russian Federation implemented an embargo on select food and agricultural imports from Western countries in response to previously imposed economic sanctions. In this paper we quantify the effect of this embargo on consumer prices and welfare in Russia. We provide evidence for the direct effect on monthly consumer prices with a difference-in-differences approach. The embargo caused prices of embargoed goods to rise by up to 7.7% – 14.9% in the short run and by on average 2.6% – 8.1% until at least 2016. The results further suggest the shock was transmitted to non-embargoed sectors through domestic input-output linkages. We then construct a general equilibrium Ricardian model of trade with input-output linkages and goods that are tradable, non-tradable or embargoed. The model-based counterfactual analysis predicts the overall price index in Russia to have increased by 0.33% and welfare to have declined by 1.84% due to the embargo. http://hdl.handle.net/10993/51154 Title: Economic Ideas and Political Action in Shaping Economic and Monetary Union: Pierre Werner and Luxembourg <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: The international financial centre in Luxembourg grew considerably in the 1960s, driven by proactive government policy, flexible regulation, a willingness to harness external opportunities and the establishment of Community institutions and European funding institutions in the country. As Luxembourg was in a currency union with Belgium within the Belgium-Luxembourg Economic Union and did not have its own Central Bank, these developments were all the more meaningful. When the European integration process experienced a series of major crises – including the failure of the European Defence Community and European Political Community in 1954, the empty chair crisis in 1966 and General de Gaulle’s veto on British accession in 1962 and 1967 –, Luxembourg set out on the path of European monetary integration, under the impetus of Finance Minister and Prime Minister Pierre Werner. In October 1970, the Werner Report provided a detailed blueprint for Economic and Monetary Union and laid the foundations for the euro. The Luxembourg financial centre would serve as a “laboratory” for the future single currency. This paper makes extensive use of relevant European and international archives and original interviews, adopting an interdisciplinary approach to analyse Luxembourg’s leading role in reconciling different views on EMU and fostering political commitment to a European currency among the Member States. http://hdl.handle.net/10993/51150 Title: Sustainable Governance Indicators (SGI) 2022 - Luxembourg Country Analysis <br/> <br/>Author, co-author: Danescu, Elena; Thomas, Adrien; Clément, Franz <br/> <br/>Abstract: The Grand Duchy is considered as the third most open economy in the world, with an openness rate of 158.2% of GDP. The country has an export-intensive economy, with a recurrent trade deficit. The share of foreign trade in Luxembourg’s GDP is currently higher then 30%. Even in the context of the Covid-19 crisis, the country is pursuing its strategy of public investments. Direct and indirect investments envisaged to reach 4.3% of GDP in 2021, a significantly higher cap than the average of 3.7% during the years 2015-2019.Luxembourg has a highly qualified workforce (59.6% of the active population). Over the past 12 month the overall employment growth rate was 1.6%, and that related to the cross-border workers was 2,2%. Two-thirds of jobs created in Luxembourg are aimed at higher education graduates.With an outstanding social security system, a level of material wellbeing above the EU average and sound public finances, Luxembourg is currently one of the most politically stable and prosperous countries in the world. Its strong fiscal position is well illustrated by a longstanding AAA credit rating, a significant accumulation of government financial assets, and a balanced, healthy fiscal position. The public administration, almost completely digitalised, is efficient and the overall economic outlook remains stable. <br/> <br/>Commentary: The system of Sustainable Governance Indicators (SGI) provide the most comprehensive analysis of sustainable governance in OECD and EU countries, including Luxembourg. Advocating the exchange of good practices, SGI offers full access to a wide range of data sets and analysis and enable comparisons that generate future innovations in governance. The system of SGI took into account is composed by the following: PARTY POLARIZATION; SUSTAINABLE POLICIES - Economic Policies (P1:Economy; P2:Labor Markets; P3:Taxes; P4:Budgets; P5:Research, Innovation & Infrastructure; P6:Global Financial System);SUSTAINABLE POLICIES- Social Policies (P7:Education; P8:Social Inclusion; P9: Health; P10: Families; P11: Pensions; P12: Integration; P13: Safe Living; P14: Global Inequalities); SUSTAINABLE POLICIES - Environmental Policies (P15: Environment; P16:Global Environmental Protection); ROBUST DEMOCRACY (D1:Electoral Processes; D2:Access to Information;D3:Civil Rights and Political Liberties; D4:Rule of Law);GOOD GOVERNANCE - Executive Capacity, Steering Capability (G1:Strategic Capacity; G2:Interministerial Coordination; G3:Evidence-based Instruments;G4:Societal Consultation;G5:Policy Communication, Policy Implementation; G6:Implementation Institutional Learning; G7:Adaptability; G8: Organizational Reform); GOOD GOVERNANCE - Executive Accountability Citizens (G9: Citizens’ Participatory Competence, Legislature; G10: Legislative Actors’ Resources, Intermediary Organizations; G11: Media; G12: Parties and Interest Associations; G13: Independent Supervisory Bodies); SYNOPSIS (Executive Summary; Key Challenges). http://hdl.handle.net/10993/51148 Title: Democracy and the digital revolution – steering an evolving paradigm <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: Knowledge-based societies rely to a large extent on intangible assets and digital technologies, and these are having an increasing impact on information systems, power, governance and citizenship, driven by a proliferation of stakeholders and networks at multiple levels (states, international organisations, private companies, civil society and citizens. There is a clear need for international regulation in this area. This paper takes a multidisciplinary approach, combining an examination of theoretical, conceptual and methodological frameworks with an analysis of relevant public and private archives, with a threefold objective: 1) to outline issues and challenges in terms of human rights, freedom and democracy; 2) to identify the regulatory provisions adopted at European and international level to promote accountability, civic engagement and digital literacy through new forms of (mediated) democracy; and 3) to identify future prospects, risks and uncertainties in the era of artificial intelligence. <br/> <br/>Commentary: The aim of the 2022 Lisbon conference of Europeanists will be to join scholars from different areas to reflect on and discuss the relation between environment and democracy from a multidisciplinary and multilevel perspective. While all proposals related to Europe will be considered, we especially welcome submissions specifically dealing with environmental issues, problems of democracy, and the relation between democracy and the environment. Quality of environment and quality of democracy are increasingly interconnected in ways that are shaping social, political, and economic life at local, national, and global levels. An example of this interconnection is the frequent association of populism with climate change denial or refusal of climate policies. Or the call by social movements, environmental organizations, and activists for more innovative, deliberative, and participatory practices in policy-making as a way to transform our capacity to tackle climate change and other environmental challenges democratically. Today, many such movements and groups are at the forefront of demand not just for new public policies but also for the elaboration of new forms of democratic participation. On the side of academic research, different social and human sciences (such as political science and public policy, sociology, psychology, geography, economy, anthropology, history, and cultural studies, among others) have been increasingly dealing with environmental issues, including their democratic implications. In this context, dialogue between social and human sciences with natural sciences has also strengthened. Nonetheless, technological innovation, which has frequently moved much faster than innovation in policy-making and regulation, has proven another challenge affecting both the environment and democracy. This tension is evident, for example, in urban life, as cities increasingly concentrate and consume resources while simultaneously being increasingly characterized by inequality in energy, the use of space, and air quality. These inequalities affect vulnerable groups like women and migrants most strongly, thereby adding new dimensions to existing intersectionality. The growth of travel and tourism in recent decades and the continuing depletion of biodiversity enhanced by technological capacities are just a couple of examples of the same tension. If the ongoing pandemic has suspended or superseded this trend for a while, it is still uncertain which new and different models will be implemented in the future. Moreover, preliminary analyses show that inequalities have grown in the pandemic context at various levels (political, social, economic, educational, environmental, and housing). http://hdl.handle.net/10993/51144 Title: Luxembourg – navigating the transition to the knowledge economy. A historical perspective <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: Luxembourg is a multicultural, multilingual and cross-border area par excellence that has always sought to maintain an openness to its neighbours, both for reasons of security and to give itself access to larger markets. Despite its small geographical area, limited workforce and lack of natural resources, Luxembourg is currently first out of 196 countries worldwide in terms of GDP/capita (with 114 370 €/capita, representing 260% of the EU average).Thanks to a long-term strategic vision, political and institutional innovation and structural changes implemented in economy throughout the 20th century, the once bipolar agricultural/industrial society has become a competitive society based largely on knowledge-intensive services and centred on the financial sector, characterised by high-performing human capital, political stability, prosperity and a strong welfare system.Taking this observation as a starting point, adopting a comparative and interdisciplinary perspective and drawing on a wide range of European and international archive and institutional sources, the paper sets out to address the following research questions: what are the factors of change and the major challenges facing Luxembourg in the digital transition? What institutions and governance is it using to tackle these challenges? What are the risks, benefits and opportunities of this transformation over the long term? What are the country’s strengths in terms of competitiveness, and what are the weaknesses that might jeopardise its comparative advantages? What is the impact of digitalisation on the public sector and on the government’s links with business and the public at large? <br/> <br/>Commentary: The interdisciplinarity of the EU administrative science field permits to have a broader list of subjects for debating from all areas of research. The following tracks are stated for the conference (but not limited to): Track 1: Performance Management in EU Public Administrations Track 2: EU Public Administration Resilience and Cohesion Track 3: Public Policy and Strategy in EU Public Administrations Track 4: Labour Relations in EU. Present Demands and Perspectives . The project aims at generating knowledge and insights that can support policy-making and strengthen the role of the EU in a globalised world and through several scientific events (conferences, workshops and publications) will be ensured the increasing of knowledge for a better understanding of functionality of administrative mechanism in EU area, the necessity to know how to be competitive and how to gain a superior advantage, to develop new skills for the involved human resource which work in EU administrative and public bodies, to create EU strategies and EU policies to respond to the European citizens and to reflect the responsibility in the administrative act, to have a strong knowledge about the European Union matters for future professionals in fields who are increasing demand on labour market and to respond with efficiency at the challenges that require resilience. http://hdl.handle.net/10993/50871 Title: The Luxembourg Financial Ecosystem and the European Monetary Innovation. Cas Study on KBL, LuxSE and EIB (1957-1990) <br/> <br/>Author, co-author: Danescu, Elena; Cheng, Anqi <br/> <br/>Abstract: The Luxembourg international financial centre developed considerably during the 1960s, propelled by several factors including concerted government policy, flexible regulation and a willingness to harness opportunities at international level (such as the 1963 US interest equalisation tax and the Bundesbank provisions introduced in 1968 and 1974). The decision to establish various Community institutions (the ECSC High Authority in 1952) and European funding institutions (the European Investment Bank in 1968) in the country also had a decisive impact. The currency union with Belgium (BLEU, 1921) and the absence of a Luxembourg Central Bank made these developments all the more significant. Drawing on archives and oral history sources, this paper aims to illustrate the complexity and originality that characterised the development of the conceptual, political and regulatory context in Luxembourg in the 1960s-1990s, in what can be seen as a sui generis experiment and preparation for EMU. It will explore the changing financial ecosystem in Luxembourg and the collaborative efforts by its main stakeholders (banks, regulatory authorities, individuals, networks) - with a focus on KBL, LuxSE and EIB - to encourage financial and monetary innovation (via the EUA, ECU, and Eurco) before the introduction of the European single currency and to pave the way for the establishment and consolidation of the euro http://hdl.handle.net/10993/50833 Title: Network diplomacy in shaping European economic and monetary integration in the 1970s <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: The Werner Committee's work was characterised by political and doctrinal differences between “economists” (the countries with weak currencies – France, Belgium and, to a certain extent, Italy) and “monetarists” (the countries with strong currencies – Germany and the Netherlands)– namely, those who saw monetary integration as a means of economic integration and those for whom it was the ultimate goal. The conflict was ultimately resolved by the adoption of a parallel approach between economic cooperation and monetary coordination in the Member States, a principle of equilibrium on the basis of which Pierre Werner was able to secure a consensus. This paper makes extensive use of Pierre Werner’s previously unpublished archives and a collection of original oral history accounts with key players of European monetary integration. An interdisciplinary approach, together with digital methodologies (network analysis and the TXM corpus analysis framework), will be used to explore the negotiations within the Werner Committee by examining the dynamics between group members, their emerging views on EMU, their political commitment to a European currency, the similarities and differences between their ideas, their personal networks, the influence of their respective countries, their theoretical and methodological input and their contribution to the political agreement. <br/> <br/>Commentary: NETWORK DIPLOMACY IN SHAPING EUROPEAN ECONOMIC AND MONETARY INTEGRATION IN THE 1970s by Elena Danescu (Fernand Braudel Fellow and University of Luxembourg) Wednesday, 9th March 2022, 17:00, Sala del Consiglio, Villa Salviati (hybrid mode) Lecture in the framework of the History Department Research Colloquium organized by Nicolas Guilhot and Lauren Kassell http://hdl.handle.net/10993/50832 Title: Luxembourg and the creation of the European single currency - Lessons from the History <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: In political terms, European integration and multilateral cooperation enabled Luxembourg to become an equal partner in the decision-making processes and leadership of European organizations. In economic terms, these features gave the country the tools it needed to forge a development model that could underpin the creative growth of its social market economy, while preserving the majority of its vital interests—particularly the steel industry and the financial centre—over the long term. Focusing primarily on the 1970 Werner Report, which served as a blueprint for the European single currency - the euro - the presentation examines a key period in European integration history and one of the major European achievements of Luxembourg and of Pierre Werner (29 December 1913– 24 June 2002), former Prime Minister, Finance Minister and Foreign Minister of Luxembourg, who left his mark on the future of his country and is unanimously recognised as one of the architects of Economic and Monetary Union. <br/> <br/>Commentary: The workshop” Building European Administrative Area. Key Features and Boundaries” focused on the role of Luxembourg in shaping and implementing the single European currency and the vision of Pierre Werner (1913–2022) that exceed the boundaries of economic, historical, and political arguments and inspired the new dimensions of Europe through economic and monetary integration. The role of Pierre Werner in building a united Europe with a strong monetary union and defining this as the long-term goal is remarkable. In this regard, the invited speaker, Dr Elena Dănescu (Research Scientist at the Luxembourg Centre for Contemporary and Digital History, University of Luxembourg) will give a presentation about Luxembourg and Pierre Werner’s contribution to economic and monetary integration in the EU. http://hdl.handle.net/10993/50650 Title: Luxembourg Economy: In the Aftermath of the Pandemic <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: The series of measures, which helped to mitigate the short-term social and economic consequences of the crisis while paving the way for effective medium- and long-term strategies, entailed spending of approximately €2,050m. (an increase of 21.9% compared with 2019). In terms of structural improvements to SMEs, which underpin the Luxembourg economy, capital grants increased by €142.7m. compared with 2019, while investment expenditure rose by €301.8m. (26.2% higher than in 2019). Social benefits grew by an even higher proportion, increasing by 88.6% between June 2019 and June 2021 (an increase of €797.6m.). <br/> <br/>Commentary: The book include expert analysis on the area cover issues of regional importance, an extensive statistical survey of economic and demographic indicators, and bibliographies of books and periodicals covering the region. http://hdl.handle.net/10993/50502 Title: L'Europe sociale - mythe ou réalité? (L'Europe sociale - racines historiques, acteurs, modèle) <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: L’Europe sociale – mythe ou réalié?(L?Europe sociale -racines historiques, acteurs, modèle) Introduction (précisions terminologiques, racines historiques, contexte) II. Chronologie et jalons des initiatives d’une Europe sociale III. Changement de perspective IV. Le socle européen des droits sociaux IV. Chantiers actuels http://hdl.handle.net/10993/49685 Title: Refugee Mobility: Evidence from Phone Data in Turkey <br/> <br/>Author, co-author: Beine, Michel; Bertinelli, Luisito; Cömertpay, Rana; maystadt, Jean-François; Litina, Anastasia; Zou, Benteng <br/> <br/>Abstract: Our research report employs the D4R data and combines it with several <br />other sources to study one of the multiple aspects of integration of refugees, namely <br />the mobility of refugees across provinces in Turkey. In particular, we employ a <br />standard gravity model to empirically estimate a series of determinants of refugee <br />movements. These include the standard determinants such as province characteristics, <br />distances across provinces, levels of income, network effects as well as some <br />refugee-specific determinants such as the presence of refugee camps and the intensity <br />of phone call interaction among refugees. Importantly, we explore the effect <br />of certain categories of news events, notably protests, violence, and asylum grants. <br />Considering news as an indicator of policy implemented at the provincial level, we <br />gain a better understanding as to how policy can facilitate refugee mobility and thus <br />enhance integration. To benchmark our findings, we estimate the same model for the <br />mobility of individuals with a non-refugee status. http://hdl.handle.net/10993/49299 Title: Uncertainty in Experimental Asset Markets <br/> <br/>Author, co-author: Neugebauer, Tibor http://hdl.handle.net/10993/49069 Title: ESSAYS ON THE ECONOMICS OF INTERNATIONAL MIGRATION <br/> <br/>Author, co-author: Montes Viñas, Ana Cecilia <br/> <br/>Abstract: The present dissertation consists of three main chapters of self-contained works about international human migration and migrant's integration in the host society. The first chapter introduces the general outline of the dissertation and briefly explains the research questions explored in each chapter. The second chapter studies the effect of migration networks and long-term cultural distance on migration flows. The main research question is whether the diaspora effect on migration flows is larger when the cultural distance between the country of origin and destination is large. We use an unbalanced panel database of bilateral migration flows data from 1960 to 2009 for about 175 sending countries to 32 destination countries. We proxy long-term cultural distance using ancestral distance, also called genetic distance. Based on the micro-founded gravity model for migration, we estimate the interaction between the diaspora size and ancestral distance using the Poisson Pseudo Maximum Likelihood (Santos Silva \& Tenreyro, 2006). We find evidence of a positive and significant interaction effect between the network effect and ancestral distance on international migration flows, however, this effect is small once we control for omitted unobserved determinants of migration flows. The third chapter studies the educational performance of the children of migrants in the United States of America. It pushes forward the hypothesis that misalignment between expectations and aspirations crucially affects the educational outcomes of immigrant young adults. It shows that the difference in school performance between migrant children and natives lies within the aspirations and expectations that migrant children form. This chapter uses the National Longitudinal Study of Adolescent to Adult Health (Add Health), a longitudinal database representative of American high schools that surveys adolescents between the grades 7-12 collected by the Carolina Population Center. The chapter shows that a positive difference between aspirations and expectations is a driving force for higher effort and better education outcomes of immigrant teenagers. This force resolves the well-known immigrant paradox. This result is specific to migrant children and does not hold for second-generation migrant pupils who appear quite acculturated to the USA context. In the fourth chapter, the relationship between financial aid and foreign education at the postgraduate level is evaluated. I use a sample of Colombian graduates who applied to a financial aid program that sponsors the completion of master's degrees abroad. It studies the case of a Scholarship-Loan program provided by the Colfuturo Foundation and the Administrative Department of Science, Technology, and Innovation (Colciencias). Students with an undergraduate degree can apply to receipt a fund of 50000 dollars to finance their post-graduate studies in any country in the world, with the condition to come back to Columbia. The characteristics of the selection process of the program allow the implementation of a Regression Discontinuity Design (RDD) to estimate the causal effect of the scholarship-loan program on the probability of completing studies abroad. Given Colfuturo’s selection process, the assignment of the fund is expected to be distributed quasi-randomly for the applicants around the vicinity of a cut-off point. This methodology allows for the estimation of the local average treatment effect (LATE) of the program. I employ the administrative records from the scholarship provider combined with internet sources. The results show that the scholarship-loan program is an effective tool to increase the probability of completing studies abroad by approximately 30 percentage points. The results are extremely robust across estimation methods.