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The Effect of Relative Income in the Dynamics of Migration: Evidence from the VHLSS Panel Data

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  • Lee, Won Fy

Abstract

This paper examines, within the Vietnamese context, the role of relative deprivation, as proposed by Stark (1984) and Stark and Taylor (1989, 1991), in the dynamics of internal migration. The conventional wisdom in the economics of migration literature, such as the model of Harris and Todaro (1970), holds that as the rural-urban income gap widens, the influx of migrants from rural to urban areas increases until equilibrium is reached. The absolute income gap is of the utmost importance in the decision-making process concerning migration in that model. On the other hand, Stark (1984) hypothesizes that household members undertake migration not necessarily to increase the household’s absolute income but rather to improve the household’s position (in terms of relative deprivation) with respect to a specific reference group.

Suggested Citation

  • Lee, Won Fy, 2012. "The Effect of Relative Income in the Dynamics of Migration: Evidence from the VHLSS Panel Data," Master's Theses and Plan B Papers 142096, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umapmt:142096
    DOI: 10.22004/ag.econ.142096
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    References listed on IDEAS

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    1. Silber, Jacques & Verme, Paolo, 2012. "Relative deprivation, reference groups and the assessment of standard of living," Economic Systems, Elsevier, vol. 36(1), pages 31-45.
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    Cited by:

    1. Kaczmarczyk, Pawel & Tyrowicz, Joanna, 2015. "Winners and Losers among Skilled Migrants: The Case of Post-Accession Polish Migrants to the UK," IZA Discussion Papers 9057, Institute of Labor Economics (IZA).

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