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Migration when social preferences are ordinal: Steady state population distribution, and social welfare

Oded Stark

No 253373, Discussion Papers from University of Bonn, Center for Development Research (ZEF)

Abstract: This paper adds three dimensions to the received literature: it models migration when the individuals’ preferences regarding their relative income are ordinal, it works out the resulting spatial steady state distribution of the individuals, and it shows that the aggregate of the individuals’ migration choices in the spatial steady state distribution sums up to the social optimum. This finding does not apply when the individuals’ preferences regarding their relative income are cardinal. We highlight the importance of the assumption about the nature of the individuals’ social preferences (whether ordinal or cardinal) to studying and predicting their migration behavior, and to elucidating the consequences of that behavior for social welfare.

Keywords: Labor; and; Human; Capital (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int, nep-mig and nep-upt
Date: 2017-02
References: View references in EconPapers View complete reference list from CitEc
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http://ageconsearch.umn.edu/record/253373/files/DP%20231.pdf (application/pdf)

Related works:
Journal Article: Migration when Social Preferences are Ordinal: Steady-state Population Distribution and Social Welfare (2017) Downloads
Working Paper: Migration when social preferences are ordinal: Steady-state population distribution, and social welfare (2017) Downloads
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