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

Stark, Oded; Budzinski, Wiktor

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

No 288284, Discussion Papers from University of Bonn, Center for Development Research (ZEF)

Abstract: 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.

Keywords: Community/Rural/Urban Development; Labor and Human Capital (search for similar items in EconPapers)
Pages: 27
Date: 2019-04-30
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ubzefd:288284

DOI: 10.22004/ag.econ.288284

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