Migration networks as a response to financial constraints: Onset and endogenous dynamics
Oded Stark and
Marcin Jakubek
No 42, University of Tübingen Working Papers in Business and Economics from University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics
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. When the risk involved in participating in a cooperation agreement is incorporated, the propensity to enter an agreement is shown to depend positively on the cost of migration.
Keywords: Migration network; Schedule of migration; Sequential migration; Affinity; Interpersonal bonds; Cost of migration (search for similar items in EconPapers)
JEL-codes: D01 D71 D90 F22 F24 J61 O15 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-mig
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https://www.econstor.eu/bitstream/10419/60233/1/719967767.pdf (application/pdf)
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:zbw:tuewef:42
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