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Relative Deprivation, Wage Differentials and Mexican Migration

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  • Michael A. Quinn
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    Abstract

    This paper constructs and tests a model that incorporates relative deprivation into the migration decision. Relatively deprived individuals view their situations as less than a community standard. Another innovation of this paper is the utilization of a cluster approach to wage differentials. This cluster method takes account of individual characteristics while avoiding the severe multicollinearity problems inherent in the standard wage equation approach. Using data from the Mexican Migration Project, relative deprivation is found to be a significant motivating factor in domestic migration decisions. The results also suggest that Mexico-US migration may be increasing relative deprivation in Mexican communities. For policymakers, the results indicate that policies attempting to slow domestic rural-to-urban migration must address both relative and absolute outcomes in communities. Investments in communities that raise aggregate incomes, but increase relative deprivation, could result in an increase in migration out of the community, not in a decrease as intended. Copyright � 2006 The Authors; Journal compilation � 2006 Blackwell Publishing Ltd.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Review of Development Economics.

    Volume (Year): 10 (2006)
    Issue (Month): 1 (02)
    Pages: 135-153

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    Handle: RePEc:bla:rdevec:v:10:y:2006:i:1:p:135-153

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669

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    Cited by:
    1. Lee, Won Fy, 2012. "The Effect of Relative Income in the Dynamics of Migration: Evidence from the VHLSS Panel Data," Master's Theses 142096, University of Minnesota, Department of Applied Economics.
    2. Stark, Oded & Rendl, Franz & Jakubek, Marcin, 2011. "The merger of populations, the incidence of marriages, and aggregate unhappiness," Discussion Papers 109968, University of Bonn, Center for Development Research (ZEF).
    3. Stark, Oded & Fan, C. Simon, 2011. "Migration for degrading work as an escape from humiliation," Journal of Economic Behavior & Organization, Elsevier, vol. 77(3), pages 241-247, March.
    4. de Haas, Hein, 2009. "Mobility and Human Development," MPRA Paper 19176, University Library of Munich, Germany.
    5. Hyll, Walter & Schneider, Lutz, 2014. "Relative deprivation and migration preferences," Economics Letters, Elsevier, vol. 122(2), pages 334-337.
    6. Silvia Maja Melzer & Ruud J. Muffels, 2012. "Migrant's Pursuit of Happiness: The Impact of Adaption, Social Comparison and Relative Deprivation; Evidence from a 'Natural' Experiment," SOEPpapers on Multidisciplinary Panel Data Research 448, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Stark, Oded & Micevska, Maja & Mycielski, Jerzy, 2009. "Relative poverty as a determinant of migration: Evidence from Poland," Economics Letters, Elsevier, vol. 103(3), pages 119-122, June.
    8. Rachel Sabates-Wheeler & Ricardo Sabates & Adriana Castaldo, 2008. "Tackling Poverty-migration Linkages: Evidence from Ghana and Egypt," Social Indicators Research, Springer, vol. 87(2), pages 307-328, June.
    9. Chenoa Flippen, 2014. "U.S. internal Migration and Occupational Attainment: Assessing Absolute and Relative Outcomes by Region and Race," Population Research and Policy Review, Springer, vol. 33(1), pages 31-61, February.
    10. Hein de Haas, 2009. "Mobility and Human Development," Human Development Research Papers (2009 to present) HDRP-2009-01, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.

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