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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
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    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.

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    Bibliographic Info

    Paper provided by University of Minnesota, Department of Applied Economics in its series Master's Theses with number 142096.

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    Date of creation: Aug 2012
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    Handle: RePEc:ags:umapmt:142096

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    Keywords: Community/Rural/Urban Development; Consumer/Household Economics;

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    1. Michael A. Quinn, 2006. "Relative Deprivation, Wage Differentials and Mexican Migration," Review of Development Economics, Wiley Blackwell, vol. 10(1), pages 135-153, 02.
    2. Hey, John D & Lambert, Peter J, 1980. "Relative Deprivation and the Gini Coefficient: Comment," The Quarterly Journal of Economics, MIT Press, vol. 95(3), pages 567-73, November.
    3. Eiji Mangyo & Albert Park, 2011. "Relative Deprivation and Health: Which Reference Groups Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 46(3), pages 459-481.
    4. 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.
    5. Kuegler, Alice, 2009. "A Curse of Comparison? Evidence on Reference Groups for Relative Income Concerns," Policy Research Working Paper Series 4820, The World Bank.
    6. McKenzie, David & Rapoport, Hillel, 2007. "Self-selection patterns in Mexico-U.S. migration : the role of migration networks," Policy Research Working Paper Series 4118, The World Bank.
    7. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
    8. Christine Eibner & William N. Evans, 2005. "Relative Deprivation, Poor Health Habits, and Mortality," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
    9. Stark, Oded, 1984. "Rural-to-Urban Migration in LDCs: A Relative Deprivation Approach," Economic Development and Cultural Change, University of Chicago Press, vol. 32(3), pages 475-86, April.
    10. Yitzhaki, Shlomo, 1982. "Relative deprivation and economic welfare," European Economic Review, Elsevier, vol. 17(1), pages 99-113.
    11. Yitzhaki, Shlomo, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, MIT Press, vol. 93(2), pages 321-24, May.
    12. Stark, Oded & Yitzhaki, Shlomo, 1988. "Labour Migration as a Response to Relative Deprivation," MPRA Paper 21670, University Library of Munich, Germany.
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