Migratory policy in developing countries: how to bring best people back?

Damien Besancenot and Radu Vranceanu

No DR 08017, ESSEC Working Papers from ESSEC Research Center, ESSEC Business School

Abstract: This paper analyzes the decision of a migrant to return or stay within the framework of a signaling model with exogenous migratory costs. If employers have only imperfect information about the type of a worker and good workers migrate, bad workers might copy their strategy in order to get the same high wage as the good workers. Employers will therefore reduce the wage they pay to migrants and good workers incur a loss compared to the perfect information setup. In one hybrid equilibrium of the game, the more bad workers migrate, the higher the incentive for good workers to come back. Policy implications follow

Keywords: Temporary Migration; Return Migrants; Hybrid Bayesian Equilibrium; Signalling Model (search for similar items in EconPapers)
JEL-codes: D82 F22 J61 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2008-11
New Economics Papers: this item is included in nep-cta, nep-lab and nep-mig
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Related works:
Working Paper: MIGRATORY POLICY IN DEVELOPING COUNTRIES: HOW TO BRING BEST PEOPLE BACK? (2008)
Working Paper: MIGRATORY POLICY IN DEVELOPING COUNTRIES: HOW TO BRING BEST PEOPLE BACK? (2008)
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