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Temporary migration and capital market imperfections

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  • Alice Mesnard
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    Abstract

    This paper analyses the temporary migration decision of workers who are credit constrained. As observed with data on Tunisia, migrants who invest after returning to their country have accumulated more savings and stayed longer abroad than salaried return migrants. To capture these features, we analyse the optimal migration duration and occupational choice of workers using a life-cycle maximisation model. An econometric test enables us to evaluate the extend to which liquidity constraints affect self-employment of returned migrants. The model predicts unexpected effects of policy measures on migration behaviour. In particular, migrants who receive funds to invest after return do not necessarily return earlier. Copyright 2004, Oxford University Press.

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    File URL: http://hdl.handle.net/10.1093/oep/gpf042
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    Bibliographic Info

    Article provided by Oxford University Press in its journal Oxford Economic Papers.

    Volume (Year): 56 (2004)
    Issue (Month): 2 (April)
    Pages: 242-262

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    Handle: RePEc:oup:oxecpp:v:56:y:2004:i:2:p:242-262

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    1. Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    2. Stark, Oded, 2014. "On the economics of others," Discussion Papers 164965, University of Bonn, Center for Development Research (ZEF).
    3. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
    4. Dustmann, Christian & Kirchkamp, Oliver, 2000. "The Optimal Migration Duration and Activity Choice after Re-migration," Sonderforschungsbereich 504 Publications 00-39, Sonderforschungsbereich 504, Universit├Ąt Mannheim & Sonderforschungsbereich 504, University of Mannheim.
    5. Galor, Oded & Zeira, Joseph, 1988. "Income Distribution and Macroeconomics," MPRA Paper 51644, University Library of Munich, Germany, revised 01 Sep 1989.
    6. Magnac, Thierry & Robin, Jean-Marc, 1996. "Occupational choice and liquidity constraints," Ricerche Economiche, Elsevier, vol. 50(2), pages 105-133, June.
    7. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, octubre-d.
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