Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the US
AbstractThis Paper addresses the question: why and where do immigrants cluster? We examine the relative importance and interaction of two alternative explanations of immigrant clustering: (1) network externalities and (2) herd behavior. We advance the theory by presenting a framework encompassing both network and herd effects, and by delineating various types of network and herd effects in our empirical work. In order to distinguish between herd and network externalities, we use the Mexican Migration Project data. Our empirical results show that both network externalities and herds have significant effects on the migrant’s decision of where to migrate. Moreover, the significance and size of the effects vary according to the legal status of the migrant and whether the migrant is a ‘new’ or a ‘repeat’ migrant. The network-externality effect has an inverse U shape, not simply a linear positive effect as often presented in the literature. Neglecting herds and/or networks, or the inverse U shape of network effects leads to faulty conclusions about migrant behavior.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3505.
Date of creation: Aug 2002
Date of revision:
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Other versions of this item:
- Bauer, Thomas K. & Epstein, Gil S. & Gang, Ira N., 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S," IZA Discussion Papers 551, Institute for the Study of Labor (IZA).
- Ira N. Gang & Thomas Bauer & Gil S. Epstein, 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S," Departmental Working Papers 200216, Rutgers University, Department of Economics.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-03-14 (All new papers)
- NEP-GEO-2003-03-14 (Economic Geography)
- NEP-LAB-2003-03-14 (Labour Economics)
- NEP-NET-2003-03-14 (Network Economics)
- NEP-URE-2003-03-14 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gang, Ira N. & Bauer, Thomas K., 1998.
"Temporary Migrants From Egypt: How Long Do They Stay Abroad?,"
IZA Discussion Papers
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- 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.
- Paul Winters & Alain de Janvry & Elisabeth Sadoulet, 2001.
"Family and Community Networks in Mexico-U.S. Migration,"
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University of Wisconsin Press, vol. 36(1), pages 159-184.
- Winters, Paul C. & de Janvry, Alain & Sadoulet, Elisabeth, 1999. "Family And Community Networks In Mexico-U.S. Migration," Working Papers 12907, University of New England, School of Economics.
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- Epstein, Gil S., 2002.
"Informational Cascades and Decision to Migrate,"
IZA Discussion Papers
445, Institute for the Study of Labor (IZA).
- Francisco Rivera-Batiz & Myeong-Su Yun & Ira Gang, 2002.
"Economic Strain, Ethnic Concentration and Attitudes Towards Foreigners in the European Union,"
Departmental Working Papers
200214, Rutgers University, Department of Economics.
- Gang, Ira N. & Rivera-Batiz, Francisco L. & Yun, Myeong-Su, 2002. "Economic Strain, Ethnic Concentration and Attitudes Towards Foreigners in the European Union," IZA Discussion Papers 578, Institute for the Study of Labor (IZA).
- Bauer, Thomas K. & Lofstrom, Magnus & Zimmermann, Klaus F., 2000. "Immigration Policy, Assimilation of Immigrants and Natives' Sentiments towards Immigrants: Evidence from 12 OECD-Countries," IZA Discussion Papers 187, Institute for the Study of Labor (IZA).
- Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October.
- Gang, Ira N & Rivera-Batiz, Francisco L, 1994. "Labor Market Effects of Immigration in the United States and Europe: Substitution vs. Complementarity," Journal of Population Economics, Springer, vol. 7(2), pages 157-75.
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