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Return and Dynamics: The Path of Labor Migration when Workers Differ in their Skills and Information Is Asymmetric

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  • Stark, Oded

Abstract

An implementation of the theory of labor migration under asymmetric information shows that return migration arises from the reinstatement of informational symmetry which induces low-skill workers, who are no longer pooled with high-skill workers, to return. When workers in an occupation constitute more than two skill levels, say four (without loss of generality), the following patterns emerge: Migration is sequential, that is, it proceeds in waves. Each wave breaks into workers who return and workers who stay; within waves the returning migrants are the low-skill workers. The average skill level of migrants is rising in the order of their wave.

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  • Stark, Oded, 1995. "Return and Dynamics: The Path of Labor Migration when Workers Differ in their Skills and Information Is Asymmetric," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 97(1), pages 55-71.
    • Handle: RePEc:zbw:espost:236837
    DOI: 10.2307/3440829
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    Cited by:

    1. Bauer, Thomas & Gang, Ira, 1998. "Temporary Migrants from Egypt: How Long Do They Stay Abroad?," CEPR Discussion Papers 2003, C.E.P.R. Discussion Papers.
    2. Brücker, Herbert & Schröder, Philipp J. H., 2006. "International Migration with Heterogeneous Agents: Theory and Evidence," IZA Discussion Papers 2049, Institute of Labor Economics (IZA).
    3. Dequiedt, Vianney & Zenou, Yves, 2013. "International migration, imperfect information, and brain drain," Journal of Development Economics, Elsevier, vol. 102(C), pages 62-78.
    4. Damien Besancenot & Radu Vranceanu, 2008. "Migratory Policy In Developing Countries: How To Bring Best People Back?," Working Papers halshs-00344929, HAL.
    5. Katarzyna Budnik, 2011. "Temporary migration in theories of international mobility of labour," Bank i Kredyt, Narodowy Bank Polski, vol. 42(6), pages 7-48.
    6. Chaitali Sinha, 2017. "International Migration and Welfare Implications," South Asian Journal of Macroeconomics and Public Finance, , vol. 6(2), pages 209-229, December.
    7. Zhongdong Ma, 2001. "Urban Labour-Force Experience as a Determinant of Rural Occupation Change: Evidence from Recent Urban-Rural Return Migration in China," Environment and Planning A, , vol. 33(2), pages 237-255, February.
    8. Topa, Gabriela & Moriano, Juan A. & Moreno, Ana, 2012. "Psychosocial determinants of financial planning for retirement among immigrants in Europe," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 527-537.
    9. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    10. Helmenstein, Christian & Yegorov, Yury, 2000. "The dynamics of migration in the presence of chains," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 307-323, February.
    11. Bellemare, C., 2003. "Economic Assimilation and Outmigration of Immigrants in West-Germany," Other publications TiSEM 345b53a4-5ce7-48a4-ac84-7, Tilburg University, School of Economics and Management.
    12. Oded Stark & Christian Helmenstein & Yury Yegorov, 1997. "Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 4(3), pages 307-324, July.
    13. Bellemare, Charles, 2004. "Identification and Estimation of Economic Models of Outmigration Using Panel Attrition," IZA Discussion Papers 1065, Institute of Labor Economics (IZA).
    14. Jelili, Riadh Ben & Jellal, Mohamed, 2002. "Transferts des migrants tunisiens et qualification – théorie et évidence," L'Actualité Economique, Société Canadienne de Science Economique, vol. 78(3), pages 397-410, Septembre.
    15. Ira N. Gang & Thomas Bauer, 2000. "Return Migrants From Egypt: How Long Did They Stay Abroad?," Departmental Working Papers 199811, Rutgers University, Department of Economics.
    16. Bellemare, C., 2004. "Identification and Estimation of Economic Models of Outmigration using Panel Attrition," Other publications TiSEM 60237d53-7648-4b7f-93c3-7, Tilburg University, School of Economics and Management.
    17. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August.
    18. Farré, Lídia & Fasani, Francesco, 2013. "Media exposure and internal migration — Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 102(C), pages 48-61.
    19. Oded Stark, 1996. "Frontier Issues in International Migration," International Regional Science Review, , vol. 19(1-2), pages 147-177, April.
    20. Catherine Y. Co & Ira N. Gang & Myeong-Su Yun, 2000. "Returns to returning," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 57-79.
    21. Bellemare, C., 2003. "Economic Assimilation and Outmigration of Immigrants in West-Germany," Discussion Paper 2003-65, Tilburg University, Center for Economic Research.
    22. Stark, Oded, 2013. "The dynamics of international migration: Introduction," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 28, pages 1-2.
    23. Mika Haapanen, 2001. "Labour market performance and determinants of migration by gender and region of origin," ERSA conference papers ersa01p130, European Regional Science Association.
    24. Mrittika Shamsuddin & Marina-Selini Katsaiti, 2020. "Migration and Happiness: Evidence from Germany," Journal of Happiness Studies, Springer, vol. 21(8), pages 2931-2955, December.
    25. Hera Susanti & Arie Damayanti, 2015. "Determinants of Internal Migration in Indonesia," Working Papers in Economics and Business 201505, Faculty of Economics and Business, University of Indonesia, revised Oct 2015.

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