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Rationality of Migration

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  • Tunali, Insan
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    Abstract

    The paradigm of a rational individual acting on the earnings-enhancing benefits of migration is subjected to statistical scrutiny, using data from Turkey. Results with robust selectivity correction support the rationality hypothesis: Both migrants and nonmigrants chose the option in which they had comparative advantage. However, the estimated gain from moving is negative for a substantial portion of migrants, whereas a minority realize very high returns. This suggests that migration is a lottery: Individuals are willing to invest in a proposition that has a high probability of yielding negative returns because of the potential for a very large payoff. Copyright 2000 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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    Bibliographic Info

    Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

    Volume (Year): 41 (2000)
    Issue (Month): 4 (November)
    Pages: 893-920

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    Handle: RePEc:ier:iecrev:v:41:y:2000:i:4:p:893-920

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