Repercussions of Negatively Selective Migration for the Behavior of Nonmigrants When Preferences Are Social

Stark, Oded; Budzinski, Wiktor

Repercussions of Negatively Selective Migration for the Behavior of Nonmigrants When Preferences Are Social

No 12283, IZA Discussion Papers from IZA Network @ LISER

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: per capita output; social preferences; distaste for low relative income; work effort; migration (search for similar items in EconPapers)
JEL-codes: D01 D31 J24 O15 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2019-04
New Economics Papers: this item is included in nep-lma, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published - published in: JODE - Journal of Demographic Economics, 2019, 85 (2), 165-179

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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp12283

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