Repercussions of negatively selective migration for the behavior of non-migrants when preferences are social

Oded Stark, Wiktor Budzinski

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish
Pages (from-to)165-179
Number of pages15
JournalJournal of Demographic Economics
Volume85
Issue number2
DOIs
StatePublished - 1 Jun 2019
Externally publishedYes

Keywords

  • Distaste for low relative income
  • Migration
  • Per capita output
  • Social preferences
  • Work effort

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