Risk and refugee migration

Géraldine Bocquého, Marc Deschamps, Jenny Helstroffer, Julien Jacob () and Majlinda Joxhe
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Jenny Helstroffer: BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique
Julien Jacob: BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper uses the experimental setup of Tanaka et al. (2010) to measure refugees' risk preferences. A sample of 206 asylum seekers was interviewed in 2017-18 in Luxembourg. Contrary to studies which focus on risk aversion in general, we analyze its components using a cumulative prospect theory (CPT) frame-work. We show that refugees exhibit particularly low levels of risk aversion compared to other populations and that CPT provides a better fit for modelling risk attitudes. Moreover, we include randomised temporary treatments provoking emotions and find a small significant impact on probability distortion. Robustness of the Tanaka et al. (2010) experimental framework is confirmed by including treatments regarding the embedding effect. Finally, we propose a theoretical model of refugee migration that integrates the insights from our experimental outcomes regarding the functional form of refugees' decision under risk and the estimated parameter values. The model is then simulated using the data from our study.

Keywords: cumulative prospect theory; psychological priming; refugee migration; risk preferences; experimental economics (search for similar items in EconPapers)
Date: 2019-07-30
New Economics Papers: this item is included in nep-exp, nep-mig and nep-upt
Note: View the original document on HAL open archive server: https://hal.science/hal-02198118v3
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: The risk and refugee migration (2018)
Working Paper: The risk and refugee migration (2018)
Working Paper: The risk and refugee migration (2018)
Working Paper: Risk and Refugee Migration (2018)
Working Paper: Risk and Refugee Migration (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-02198118

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