Migration networks as a response to financial constraints: Onset and endogenous dynamics

Oded Stark and Marcin Jakubek

No 132550, Discussion Papers from University of Bonn, Center for Development Research (ZEF)

Abstract: A migration network is modeled as a mutually beneficial cooperative agreement between financially-constrained individuals who seek to finance and expedite their migration. The cooperation agreement creates a network: “established” migrants contract to support the subsequent migration of others in exchange for receiving support themselves. When the model is expanded to study cooperation between more than two migrants, it emerges that there is a finite optimal size of the migration network. Consequently, would-be migrants in the sending country will form a multitude of networks, rather than a single grand network.

Keywords: Community/Rural/Urban Development; Institutional and Behavioral Economics; Labor and Human Capital (search for similar items in EconPapers)
Pages: 22
Date: 2012-08
New Economics Papers: this item is included in nep-mig and nep-ure
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Migration networks as a response to financial constraints: Onset, and endogenous dynamics (2013)
Working Paper: Migration networks as a response to financial constraints: Onset and endogenous dynamics (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ubzefd:132550

DOI: 10.22004/ag.econ.132550

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