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Migration networks as a response to financial constraints: Onset, and endogenous dynamics

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  • Stark, Oded
  • Jakubek, Marcin

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.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 101 (2013)
Issue (Month): C ()
Pages: 1-7

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Handle: RePEc:eee:deveco:v:101:y:2013:i:c:p:1-7

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Web page: http://www.elsevier.com/locate/devec

Related research

Keywords: Migration networks; Schedule of migration; Sequential migration; Affinity; Interpersonal bonds; Cost of migration;

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References

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  1. Benjamin Davis & Paul Winters, 2002. "Gender, Networks and Mexico-US Migration," Working Papers, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) 02-03, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  2. Gordon H Hanson & Craig McIntosh, 2010. "The Great Mexican Emigration," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 798-810, November.
  3. Timothy Besley & Stephen Coate & Glenn Loury, 1992. "The Economics of Rotating Savings and Credit Associations," Boston University - Institute for Economic Development, Boston University, Institute for Economic Development 24, Boston University, Institute for Economic Development.
  4. Oded Stark, 2009. "Reasons for Remitting," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 10(3), pages 147-158, July.
  5. Orrenius, Pia M. & Zavodny, Madeline, 2005. "Self-selection among undocumented immigrants from Mexico," Journal of Development Economics, Elsevier, Elsevier, vol. 78(1), pages 215-240, October.
  6. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 93(5), pages 901-18, October.
  7. Anderson, Siwan & Baland, Jean-Marie & Moene, Karl Ove, 2009. "Enforcement in informal saving groups," Journal of Development Economics, Elsevier, Elsevier, vol. 90(1), pages 14-23, September.
  8. Fan, C. Simon & Stark, Oded, 2007. "A social proximity explanation of the reluctance to assimilate," MPRA Paper 30940, University Library of Munich, Germany.
  9. Lori A. Beaman, 2012. "Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 128-161.
  10. Kovsted, Jens & Lyk-Jensen, Peter, 1999. "Rotating savings and credit associations: the choice between random and bidding allocation of funds," Journal of Development Economics, Elsevier, Elsevier, vol. 60(1), pages 143-172, October.
  11. Stark, Oded & Wang, You Qiang, 2002. "Migration dynamics," Economics Letters, Elsevier, Elsevier, vol. 76(2), pages 159-164, July.
  12. Stark, Oded & Lucas, Robert E B, 1988. "Migration, Remittances, and the Family," Economic Development and Cultural Change, University of Chicago Press, vol. 36(3), pages 465-81, April.
  13. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, American Economic Association, vol. 86(4), pages 909-30, September.
  14. Sarah Dolfin & Garance Genicot, 2010. "What Do Networks Do? The Role of Networks on Migration and "Coyote" Use," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 14(2), pages 343-359, 05.
  15. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(2), pages 549-599, May.
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Cited by:
  1. Kępińska, Ewa & Stark, Oded, 2013. "The evolution and sustainability of seasonal migration from Poland to Germany: From the dusk of the 19th century to the dawn of the 21st century," International Review of Economics & Finance, Elsevier, Elsevier, vol. 28(C), pages 3-18.
  2. Neubecker, Nina & Smolka, Marcel, 2013. "Co-national and cross-national pulls in international migration to Spain," International Review of Economics & Finance, Elsevier, Elsevier, vol. 28(C), pages 51-61.

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