International labour migration under alternative informational regimes: A diagrammatic analysis

Eliakim Katz*, Oded Stark

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

International migration under asymmetric information usually diners from international migration under symmetric information. In this paper we show that when at the lowest skill level migration is desirable, the introduction of asymmetric information results in a reduction of the quality and quantity of international migration or has no effect at all. When at the lowest skill level migration is not desirable, the introduction of asymmetric information may either result in migration by all or by none. Allowing employers to discover, after a while, the true productivity of individual migrant workers, we obtain the somewhat surprising result that (under a reasonable set of assumptions), eventual discovery may increase the quantity and quality of migration and also increase the wage enjoyed by the low quality migrants.

Original languageEnglish
Pages (from-to)127-142
Number of pages16
JournalEuropean Economic Review
Volume33
Issue number1
DOIs
StatePublished - Jan 1989
Externally publishedYes

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