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Repercussions of Negatively Selective Migration for the Behavior of Non-migrants when Preferences are Social 표지
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Title Repercussions of Negatively Selective Migration for the Behavior of Non-migrants when Preferences are Social
Author Oded Stark, Wiktor Budzinski
Series Working paper 19-03
Language English
Date 2019-08-10

   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: Social preferences; Distaste for low relative income; Work effort; Per capita output; Migration
JEL classification: D01; D31; J24; O15
 

1. INTRODUCTION

2. A MODEL OF ENDOGENOUS WORK EFFORT IN AN ECONOMY WITH HETEROGENEOUS AGENTS

3. APPLICATION OF THE MODEL: MIGRATION

4. CONCLUSIONS

APPENDIX

REFERENCES 

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