Arbeitspapier

Repercussions of negatively selective migration for the behavior of non-migrants when preferences are social

We study how the work effort and output of non-migrants in a village economy are affected when a member of the village population migrates. Given that individuals dislike low relative income, and that migration modifies the social space of the non-migrants, we show why and how the non-migrants adjust their work effort and output in response to the migration-generated change in their social space. When migration is negatively selective such that the least productive individual departs, the output of the non-migrants increases. While as a consequence of this migration statically calculated average productivity rises, we identify a dynamic repercussion that compounds the static one.

Language
Englisch

Bibliographic citation
Series: ZEF Discussion Papers on Development Policy ; No. 275

Classification
Wirtschaft
Microeconomic Behavior: Underlying Principles
Personal Income, Wealth, and Their Distributions
Human Capital; Skills; Occupational Choice; Labor Productivity
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Subject
Social preferences
Distaste for low relative income
Work effort
Per capita output
Migration

Event
Geistige Schöpfung
(who)
Stark, Oded
Budzinski, Wiktor
Event
Veröffentlichung
(who)
University of Bonn, Center for Development Research (ZEF)
(where)
Bonn
(when)
2019

Handle
Last update
04.03.2025, 11:19 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Stark, Oded
  • Budzinski, Wiktor
  • University of Bonn, Center for Development Research (ZEF)

Time of origin

  • 2019

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