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

Oded Stark and Wiktor Budzinski

No 12283, IZA Discussion Papers from Institute of Labor Economics (IZA)

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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Related works:
Journal Article: Repercussions of Negatively Selective Migration for the Behavior of Non-Migrants when Preferences Are Social (2019)
Journal Article: Repercussions of negatively selective migration for the behavior of non-migrants when preferences are social (2019)
Working Paper: Repercussions of negatively selective migration for the behavior of non-migrants when preferences are social (2019)
Working Paper: Repercussions of Negatively Selective Migration for the Behavior of Non-migrants when Preferences are Social (2019)
Working Paper: Repercussions of negatively selective migration for the behavior of non-migrants when preferences are social (2019)
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