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Migratory policy in developing countries: how to bring best people back?

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Author Info

  • Besancenot, Damien

    ()
    (CEPN and University Paris 13)

  • Vranceanu, Radu

    ()
    (ESSEC Business School)

Abstract

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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Bibliographic Info

Paper provided by ESSEC Research Center, ESSEC Business School in its series ESSEC Working Papers with number DR 08017.

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Length: 26 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:ebg:essewp:dr-08017

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Postal: ESSEC Research Center, BP 105, 95021 Cergy, France
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Web page: http://www.essec.edu/
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Related research

Keywords: Temporary Migration; Return Migrants; Hybrid Bayesian Equilibrium; Signalling Model;

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References

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  1. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence," CReAM Discussion Paper Series 0702, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Matloob Piracha & Augustin de Coulon, 2003. "Self-Selection and the Performance of Return Migrants: the Source Country Perspective," CEP Discussion Papers dp0576, Centre for Economic Performance, LSE.
  3. Anna Iara, 2006. "Skill Diffusion by Temporary Migration? Returns to Western European Working Experience in the EU Accession Countries," Development Working Papers 210, Centro Studi Luca d\'Agliano, University of Milano.
  4. Borjas, George J & Bratsberg, Bernt, 1996. "Who Leaves? The Outmigration of the Foreign-Born," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 165-76, February.
  5. Katz, Eliakim & Stark, Oded, 1987. "Migration, information and the costs and benefits of signalling," Regional Science and Urban Economics, Elsevier, vol. 17(3), pages 323-331, August.
  6. Ali Mansoor & Bryce Quillin, 2007. "Migration and Remittances : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 6920, October.
  7. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
  8. Dustmann, Christian, 2000. "Temporary Migration and Economic Assimilation," IZA Discussion Papers 186, Institute for the Study of Labor (IZA).
  9. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 236-256, 06.
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