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A Micro-founded Theory of Multilateral Resistance to Migration

Author

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  • Claire Naiditch

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique, Université de Lille)

  • Léa Marchal

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, IC Migrations - Institut Convergences Migrations [Aubervilliers], UP1 UFR02 - Université Paris 1 Panthéon-Sorbonne - École d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne)

Abstract

This paper provides a micro-founded theory of multilateral resistance to migration analyzing how financial constraints determine migration trends. We build a RUM model in which we explicitly introduce the budget constraint in the migration decision: individuals cannot afford migrating to a destination for which the migration cost (which depends on the immigration policy of the destination country) is higher than their current income. We find that the migration rate between two countries depends on the characteristics of the origin and destination countries and their relative accessibility, and also on a budget constraint term. This term depends on the attributes of alternative destinations. Thus, the model exhibits multilateral resistance to migration. We perform a numerical analysis based on 23 European countries in 2008 and evidence multilateral resistance to migration induced by the implementation of intra-EU migration restrictions following the 2004 EU enlargement.

Suggested Citation

  • Claire Naiditch & Léa Marchal, 2016. "A Micro-founded Theory of Multilateral Resistance to Migration," Working Papers halshs-04127829, HAL.
    • Handle: RePEc:hal:wpaper:halshs-04127829
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04127829
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    More about this item

    Keywords

    Migration; Budget constraint; Immigration policy; RUM model; Multilateral resistance to migration;
    All these keywords.

    JEL classification:

    • 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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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