The Role of Community in Migration Dynamics

Sergio Vergalli

No 2006.4, Working Papers from Fondazione Eni Enrico Mattei

Abstract: In this paper, we present a theoretical model that, implementing the pioneering work of Burda (1995), based on the Real Option Theory, investigates the roots of the migration dynamics. In the model the decision to migrate of each individual depends not only on the wage differential, but also on a U-shaped benefit function of a community of homogeneous ethnic individuals, modelled according to the "theory of clubs". The theoretical results are able to give an explanation to the observable "jumps" in the migration flows and to describe how the trigger for entry can change depending on the dimension of the district. The analysis of the results also sheds light on the dynamics of the districts’ development: some possible rigidities in the adjustment of the district dimension, as regards the optimal levels, could magnify the hysteresis process.

Keywords: Migration; Real option; Theory of clubs; Network effect (search for similar items in EconPapers)
JEL-codes: F22 H49 O15 R23 (search for similar items in EconPapers)
Date: 2006-01
New Economics Papers: this item is included in nep-geo, nep-pbe, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://feem-media.s3.eu-central-1.amazonaws.com/w ... oads/NDL2006-004.pdf (application/pdf)

Related works:
Journal Article: The Role of Community in Migration Dynamics (2008)
Working Paper: The Role of Community in Migration Dynamics (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2006.4

Access Statistics for this paper

More papers in Working Papers from Fondazione Eni Enrico Mattei Contact information at EDIRC.
Bibliographic data for series maintained by Alberto Prina Cerai ( this e-mail address is bad, please contact ).