Where do Migrants Go? Risk-Aversion, Mobility Costs and the Locational Choice of Migrants
AbstractAs part of their effort to pool individual risk, households consider spreading their members over a plurality of locations, both inside and outside their country of origin. At the same time, the world is ridden with ‘Chinatowns’ and ‘Little Italies’: people, whenever they move, tend to bunch in the same location. Bunching would appear fundamentally at odds with the desire to diversify risk. In this paper we provide a framework to reconcile both spatial bunching and the spread of migrants, combining risk-aversion and concavity of mobility costs at the household level. Evidence from Southern Italy is consistent with the main predictions from our model.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1540.
Date of creation: Dec 1996
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Other versions of this item:
- Daveri, F & Faini, R, 1996. "Where Do Migrants Go? Risk-Aversion, Mobility Costs and the Locational Choice of Migrants," Papers 290, Banca Italia - Servizio di Studi.
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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