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Direct Evidence on Risk Attitudes and Migration

Author

Listed:
  • David A. Jaeger

    (City University of New York Graduate Center, University of Cologne, and IZA)

  • Thomas Dohmen

    (ROA, Maastricht University, IZA, and DIW)

  • Armin Falk

    (University of Bonn, IZA, CEPR, and DIW)

  • David Huffman

    (Swarthmore College and IZA)

  • Uwe Sunde

    (University of St. Gallen, IZA, CEPR, and DIW)

  • Holger Bonin

    (ZEW and IZA)

Abstract

It has long been hypothesized that individuals' migration propensities depend on their risk attitudes, but the empirical evidence has been limited and indirect. We use newly available data from the German Socio-Economic Panel to measure directly the relationship between migration and risk attitudes. We find that individuals who are more willing to take risks are more likely to migrate. Our estimates are substantial compared to unconditional migration probabilities, as well the effects of conventional determinants of migration, and are robust to controlling for a variety of demographic characteristics. We find no evidence that our results are the result of reverse causality. © 2010 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • David A. Jaeger & Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Holger Bonin, 2010. "Direct Evidence on Risk Attitudes and Migration," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 684-689, August.
    • Handle: RePEc:tpr:restat:v:92:y:2010:i:3:p:684-689
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    References listed on IDEAS

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    1. George J. Borjas, 2021. "Does Immigration Grease the Wheels of the Labor Market?," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 14, pages 431-484, World Scientific Publishing Co. Pte. Ltd..
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    7. David A. Jaeger & Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Holger Bonin, 2010. "Direct Evidence on Risk Attitudes and Migration," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 684-689, August.
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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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