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Abstract

We provide an analytical-behavioral explanation for the observed positive relationship between income inequality, as measured by the Gini coefficient, and the incentive to migrate. We show that a higher total relative deprivation of a population leads to a stronger incentive to engage in migration for a given level of a population’s income; that total relative deprivation is positively related to the Gini coefficient; and that, consequently, the Gini coefficient and migration are positively correlated, holding the population’s income constant.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 91 (2006)
Issue (Month): 1 (April)
Pages: 146-152

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Handle: RePEc:eee:ecolet:v:91:y:2006:i:1:p:146-152

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

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Find related papers by JEL classification:

• A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
• A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
• D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
• D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
• F22 - International Economics - - International Factor Movements and International Business - - - International Migration
• J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

References

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1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-64, October.
   
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2. Sherwin Rosen, 1985. "Prizes and Incentives in Elimination Tournaments," NBER Working Papers 1668, National Bureau of Economic Research, Inc.
   
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3. Oded Stark & You Qiang Wang, 2000. "A Theory of Migration as a Response to Relative Deprivation," German Economic Review, Verein für Socialpolitik, vol. 1(2), pages 131-143, 05.
   
   • Oded Stark & You-qiang Wang, 2000. "A theory of Migration as a Response to Relative Deprivation," Departmental Working Papers _116, Chinese University of Hong Kong, Department of Economics.
4. David Andolfatto, 2000. "A Theory of Inalienable Property Rights," Cahiers de recherche CREFE / CREFE Working Papers 110, CREFE, Université du Québec à Montréal.
   
   • David Andolfatto, 2002. "A Theory of Inalienable Property Rights," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 382-393, April.
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5. Erzo F. P. Luttmer, 2005. "Neighbors as Negatives: Relative Earnings and Well-Being," The Quarterly Journal of Economics, MIT Press, vol. 120(3), pages 963-1002, August.
   
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   • Luttmer, Erzo F. P., 2004. "Neighbors as Negatives: Relative Earnings and Well-Being," Working Paper Series rwp04-029, Harvard University, John F. Kennedy School of Government.
6. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September.
   
   • Clark, Andrew E. & Oswald, Andrew J., 1994. "Satisfaction and comparison income," CEPREMAP Working Papers (Couverture Orange) 9408, CEPREMAP.
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7. George J. Borjas, 1988. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc.
   
   • Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September.
8. Thomas Liebig & Alfonso Sousa-Poza, 2004. "Migration, Self-Selection and Income Inequality: An International Analysis," Kyklos, Wiley Blackwell, vol. 57(1), pages 125-146, 02.
9. Stark, Oded, 1990. "A Relative Deprivation Approach to Performance Incentives in Career Games and Other Contests," Kyklos, Wiley Blackwell, vol. 43(2), pages 211-27.

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Citations

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Cited by:

1. Vladimir Otrachshenko & Olga Popova, 2012. "Life (Dis)satisfaction and the Decision to Migrate: Evidence from Central and Eastern Europe," CERGE-EI Working Papers wp460, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
   
   • Vladimir Otrachshenko & Olga Popova, 2011. "Life (Dis)satisfaction and the Decision to Migrate: Evidence from Central and Eastern Europe," Working Papers 306, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
   • Vladimir Otrachshenko & Olga Popova, 2012. "Life (Dis)satisfaction and the Decision to Migrate: Evidence from Central and Eastern Europe," FEUNL Working Paper Series wp570, Universidade Nova de Lisboa, Faculdade de Economia.
2. 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).
3. Stark, Oded & Hyll, Walter & Behrens, Doris A., 2010. "Gauging the Potential for Social Unrest," MPRA Paper 22207, University Library of Munich, Germany.
   
   • Oded Stark & Walter Hyll & Doris Behrens, 2010. "Gauging the potential for social unrest," Public Choice, Springer, vol. 143(1), pages 229-236, April.
   • Stark, Oded & Hyll, Walter & Behrens, Doris A., 2009. "Gauging the potential for social unrest," Discussion Papers 53721, University of Bonn, Center for Development Research (ZEF).
4. 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.
5. Czaika, Mathias, 2011. "Internal and international migration as response of double deprivation: some evidence from India," Proceedings of the German Development Economics Conference, Berlin 2011 21, Verein für Socialpolitik, Research Committee Development Economics.
6. Zheren WU, 2008. "Relative Income Positions and Labor Migration: A Panel Study Based on a Rural Household Survey in China," Discussion Papers in Economics and Business 08-24, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).

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