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

Oded Stark and Wiktor Budzinski

No 117, University of Tübingen Working Papers in Business and Economics from University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics

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: Social preferences; Distaste for low relative income; Work effort; Per capita output; Migration (search for similar items in EconPapers)
JEL-codes: D01 D31 J24 O15 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://www.econstor.eu/bitstream/10419/196914/1/1662898185.pdf (application/pdf)

Related works:
Journal Article: Repercussions of Negatively Selective Migration for the Behavior of Non-Migrants when Preferences Are Social (2019) Downloads
Journal Article: Repercussions of negatively selective migration for the behavior of non-migrants when preferences are social (2019) Downloads
Working Paper: Repercussions of negatively selective migration for the behavior of non-migrants when preferences are social (2019) Downloads
Working Paper: Repercussions of Negatively Selective Migration for the Behavior of Nonmigrants When Preferences Are Social (2019) Downloads
Working Paper: Repercussions of Negatively Selective Migration for the Behavior of Non-migrants when Preferences are Social (2019) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuewef:117

DOI: 10.15496/publikation-28943

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