Migratory Policy In Developing Countries: How To Bring Best People Back?
AbstractThis paper analyzes the decision of a migrant to return or stay within the framework of a signaling model withexogenous migratory costs. If employers have only imperfect information about the type of a worker and goodworkers 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 theperfect information setup. In one hybrid equilibrium of the game, the more bad workers migrate, the higher theincentive for good workers to come back. Policy implications follow.
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Date of creation: 15 Dec 2008
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Temporary migration; Return migrants; Hybrid Bayesian Equilibrium; Signaling model.;
Other versions of this item:
- Besancenot, Damien & Vranceanu, Radu, 2008. "Migratory policy in developing countries: how to bring best people back?," ESSEC Working Papers DR 08017, ESSEC Research Center, ESSEC Business School.
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- 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
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