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Migratory Policy In Developing Countries: How To Bring Best People Back?

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Author Info
Damien Besancenot () (CEPN - Centre d'économie de l'Université de Paris Nord - CNRS : UMR7115 - Université Paris-Nord - Paris XIII)
Radu Vranceanu () (Department of Economics - ESSEC)

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Abstract

This 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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Paper provided by HAL in its series Working Papers with number halshs-00344929_v1.

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Date of creation: 15 Dec 2008
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Handle: RePEc:hal:wpaper:halshs-00344929_v1

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Related research
Keywords: Temporary migration; Return migrants; Hybrid Bayesian Equilibrium; Signaling model.;

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  1. 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. [Downloadable!] (restricted)
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  2. 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. [Downloadable!] (restricted)
  3. Dustmann, Christian, 2000. "Temporary Migration and Economic Assimilation," IZA Discussion Papers 186, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 45(2), pages 236-256, 06. [Downloadable!] (restricted)
  5. Augustin Coulon & Matloob Piracha, 2005. "Self-selection and the performance of return migrants: the source country perspective," Journal of Population Economics, Springer, vol. 18(4), pages 779-807, November. [Downloadable!] (restricted)
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  6. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August. [Downloadable!] (restricted)
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