This paper analyzes the decision of a migrant to return or stay within the framework of a signaling model with exogenous migratory costs. If employers have only imperfect information about the type of a worker and good workers migrate, bad workers might copy their strategy in order to get the same high wage as the good workers. Employers will therefore reduce the wage they pay to migrants and good workers incur a loss compared to the perfect information setup. In one hybrid equilibrium of the game, the more bad workers migrate, the higher the incentive for good workers to come back. Policy implications follow
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Paper provided by ESSEC Research Center, ESSEC Business School in its series ESSEC Working Papers with number
DR 08017.
Find related papers by JEL classification: D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information F22 - International Economics - - International Factor Movements and International Business - - - International Migration J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
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