IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v138y2018i1d10.1007_s11205-017-1649-6.html
   My bibliography  Save this article

Aspirations of Migrants and Returns to Human Capital Investment

Author

Listed:
  • Sung Soo Lim

    (American University in Dubai)

Abstract

Migrants are believed to have higher aspirations than non-migrants. Furthermore, studies find that migration itself leads to even higher aspirations. One conventional explanation found in the literature is that migrants adapt their aspirations to their income relative to that of a new reference group. As this process continues migrants are miserably trapped on a hedonic treadmill. Alternatively, migration can be viewed as an investment in capabilities that can expand the aspirational window through the awareness of even better opportunities that lead to higher aspirations. If cities are viewed as places where migrants can accumulate human capital, the increase in aspirations after migration may be explained from an angle of expected returns to the human capital investment. Using two waves of Indonesian Family Life Survey (2000, 2007), this study presents tests of these two possible explanations about the change in aspirations after migration. To this end, this study uses a variable constructed by a difference between a migrant’s current level of subjective well-being and her future aspired level of well-being. The results cast doubt on the view that post-migration aspirations make migrants miserable in their migration destinations. Instead, this study finds ample evidence to support the view that migrants move to urban areas in order to accumulate human capital, looking forward to returns to their investment.

Suggested Citation

  • Sung Soo Lim, 2018. "Aspirations of Migrants and Returns to Human Capital Investment," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 317-334, July.
    • Handle: RePEc:spr:soinre:v:138:y:2018:i:1:d:10.1007_s11205-017-1649-6
    DOI: 10.1007/s11205-017-1649-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-017-1649-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-017-1649-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stillman, Steven & McKenzie, David & Gibson, John, 2009. "Migration and mental health: Evidence from a natural experiment," Journal of Health Economics, Elsevier, vol. 28(3), pages 677-687, May.
    2. John Kennan & James R. Walker, 2011. "The Effect of Expected Income on Individual Migration Decisions," Econometrica, Econometric Society, vol. 79(1), pages 211-251, January.
    3. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-484, July.
    4. David Bartram, 2011. "Economic Migration and Happiness: Comparing Immigrants’ and Natives’ Happiness Gains From Income," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 103(1), pages 57-76, August.
    5. Garrison, Helen, 1982. "Internal Migration in Mexico: A Test of the Todaro Model," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 18(2), pages 1-18.
    6. Nikolova, Milena & Graham, Carol, 2015. "In transit: The well-being of migrants from transition and post-transition countries," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 164-186.
    7. Stillman, Steven & Gibson, John & McKenzie, David & Rohorua, Halahingano, 2015. "Miserable Migrants? Natural Experiment Evidence on International Migration and Objective and Subjective Well-Being," World Development, Elsevier, vol. 65(C), pages 79-93.
    8. Mathias Czaika & Marc Vothknecht, 2014. "Migration and aspirations – are migrants trapped on a hedonic treadmill?," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-21, December.
    9. John Gibson & David McKenzie & Steven Stillman, 2013. "Accounting for Selectivity and Duration-Dependent Heterogeneity When Estimating the Impact of Emigration on Incomes and Poverty in Sending Areas," Economic Development and Cultural Change, University of Chicago Press, vol. 61(2), pages 247-280.
    10. Karin Amit, 2010. "Determinants of Life Satisfaction Among Immigrants from Western Countries and from the FSU in Israel," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 96(3), pages 515-534, May.
    11. Salvatore, Dominick, 1981. "A theoretical and empirical evaluation and extension of the Todaro migration model," Regional Science and Urban Economics, Elsevier, vol. 11(4), pages 499-508, November.
    12. Analia Olgiati & Rocio Calvo & Lisa Berkman, 2013. "Are Migrants Going Up a Blind Alley? Economic Migration and Life Satisfaction around the World: Cross-National Evidence from Europe, North America and Australia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 383-404, November.
    13. Banerjee, Biswajit & Kanbur, S M, 1981. "On the Specification and Estimation of Macro Rural-Urban Migration Functions: With an Application to Indian Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 43(1), pages 7-29, February.
    14. Knight, John & Gunatilaka, Ramani, 2010. "Great Expectations? The Subjective Well-being of Rural-Urban Migrants in China," World Development, Elsevier, vol. 38(1), pages 113-124, January.
    15. Robert E. Lucas, Jr., 2004. "Life Earnings and Rural-Urban Migration," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages 29-59, February.
    16. Beata Nowok & Maarten van Ham & Allan M Findlay & Vernon Gayle, 2013. "Does Migration Make You Happy? A Longitudinal Study of Internal Migration and Subjective Well-Being," Environment and Planning A, , vol. 45(4), pages 986-1002, April.
    17. Tunali, Insan, 2000. "Rationality of Migration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(4), pages 893-920, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sung Soo Lim, 2020. "The Effects of Chronic Illness on Aspirations and Subjective Wellbeing," Journal of Happiness Studies, Springer, vol. 21(5), pages 1771-1793, June.
    2. Sung Soo Lim & Jongwook Lee, 2022. "Aspirations, Human Capital Investment, and the Intergenerational Transmission of Poverty in Indonesia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(1), pages 377-412, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nikolova, Milena & Graham, Carol, 2015. "In transit: The well-being of migrants from transition and post-transition countries," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 164-186.
    2. Chen, Joyce & Kosec, Katrina & Mueller, Valerie, 2019. "Moving to despair? Migration and well-being in Pakistan," World Development, Elsevier, vol. 113(C), pages 186-203.
    3. David Bartram, 2015. "Inverting the Logic of Economic Migration: Happiness Among Migrants Moving from Wealthier to Poorer Countries in Europe," Journal of Happiness Studies, Springer, vol. 16(5), pages 1211-1230, October.
    4. Kerstin Mitterbacher, 2021. "Motives for economic migration: a review," Working Paper Series, Social and Economic Sciences 2021-07, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    5. Irena Kogan & Jing Shen & Manuel Siegert, 2018. "What Makes a Satisfied Immigrant? Host-Country Characteristics and Immigrants’ Life Satisfaction in Eighteen European Countries," Journal of Happiness Studies, Springer, vol. 19(6), pages 1783-1809, August.
    6. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
    7. Artjoms Ivlevs, 2015. "Happy Moves? Assessing the Link between Life Satisfaction and Emigration Intentions," Kyklos, Wiley Blackwell, vol. 68(3), pages 335-356, August.
    8. Switek, Maggie, 2012. "Internal Migration and Life Satisfaction: Well-Being Effects of Moving as a Young Adult," IZA Discussion Papers 7016, Institute of Labor Economics (IZA).
    9. Malgorzata Switek, 2016. "Internal Migration and Life Satisfaction: Well-Being Paths of Young Adult Migrants," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 191-241, January.
    10. Rocío Calvo & Felix Cheung, 2018. "Does Money Buy Immigrant Happiness?," Journal of Happiness Studies, Springer, vol. 19(6), pages 1657-1672, August.
    11. Devrim Dumludag & Ozge Gokdemir, 2022. "Income Aspiration, Income Comparison and Life Satisfaction: The case of Turkish Migrants in the Netherlands," Journal of Happiness Studies, Springer, vol. 23(4), pages 1359-1378, April.
    12. Chinedu Obi & Wannes Slosse & Fabio Bartolini & Joost Dessein & Marijke D’Haese, 2023. "Understanding Integration Experience and Wellbeing of Economic-Asylum Seekers in Italy: the Case of Nigerian Immigrants," Journal of International Migration and Integration, Springer, vol. 24(1), pages 189-210, March.
    13. 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).
    14. Stefan Gruber & Gregor Sand, 2022. "Does Migration Pay Off in Later Life? Income and Subjective Well-Being of Older Migrants in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(2), pages 969-988, April.
    15. Stillman, Steven & Gibson, John & McKenzie, David & Rohorua, Halahingano, 2015. "Miserable Migrants? Natural Experiment Evidence on International Migration and Objective and Subjective Well-Being," World Development, Elsevier, vol. 65(C), pages 79-93.
    16. Marcel Erlinghagen & Christoph Kern & Petra Stein, 2019. "Internal Migration, Social Stratification and Dynamic Effects on Subjective Well Being," SOEPpapers on Multidisciplinary Panel Data Research 1046, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. M. Hendriks & M. J. Burger, 2020. "Unsuccessful Subjective Well-Being Assimilation Among Immigrants: The Role of Faltering Perceptions of the Host Society," Journal of Happiness Studies, Springer, vol. 21(6), pages 1985-2006, August.
    18. Kiyoshi Yonemoto, 2021. "Reference-dependent preference and interregional migration: extending the Harris–Todaro model," Letters in Spatial and Resource Sciences, Springer, vol. 14(1), pages 1-10, April.
    19. Alexander M. Danzer & Barbara Dietz, 2018. "Getting Incentives Right: The economic and social determinants of migrants’ well-being during the global financial crisis," Working Papers 371, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    20. Mrittika Shamsuddin & Marina-Selini Katsaiti, 2020. "Migration and Happiness: Evidence from Germany," Journal of Happiness Studies, Springer, vol. 21(8), pages 2931-2955, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:138:y:2018:i:1:d:10.1007_s11205-017-1649-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.