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Co-ordination Failures in Network Migration

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  • Axel Heitmueller

Abstract

Previous migration facilitates future population moves, a phenomenon called network migration. However, thus far, network migration has been closely linked to network externalities. In contrast, this paper argues that the incumbent migration population can actively impact on future migration flows, yet fails to achieve a Pareto optimal network size due to co-ordination failures. In short, it stresses the active role incumbents take in the provision of network effects and, second, it provides theoretical evidence that self-perpetuating and sustained immigration is not at odds with rational acting individuals and must not simply be ascribed to pure network externalities.

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File URL: http://www.sml.hw.ac.uk/downloads/cert/wpa/2003/dp0302.pdf
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Bibliographic Info

Paper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number 0302.

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Date of creation: 2003
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Handle: RePEc:hwe:certdp:0302

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Keywords: Migration networks; Pareto optimality; optimal network size; network externalities.;

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References

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  1. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
  2. Christian Dustmann & Ian Preston, 2004. "Racial and Economic Factors in Attitudes to Immigration," CReAM Discussion Paper Series 0401, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Bauer, Thomas K. & Epstein, Gil S. & Gang, Ira N., 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S," IZA Discussion Papers 551, Institute for the Study of Labor (IZA).
  4. Francisco Rivera-Batiz & Myeong-Su Yun & Ira Gang, 2002. "Economic Strain, Ethnic Concentration and Attitudes Towards Foreigners in the European Union," Departmental Working Papers 200214, Rutgers University, Department of Economics.
  5. Gang, Ira N & Rivera-Batiz, Francisco L, 1994. "Labor Market Effects of Immigration in the United States and Europe: Substitution vs. Complementarity," Journal of Population Economics, Springer, vol. 7(2), pages 157-75.
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Cited by:
  1. Hubert JAYET & Glenn RAYP & Ilse RUYSSEN & Nadiya UKRAYINCHUK, 2014. "Immigrants’ location choice in Belgium," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2014004, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. Sergio Vergalli, 2011. "Entry and Exit Strategies in Migration Dynamics," Journal of Labor Research, Springer, vol. 32(4), pages 362-389, December.
  3. Michele Moretto & Sergio Vergalli, 2005. "Migration dynamics," Working Papers ubs0507, University of Brescia, Department of Economics.
  4. Nowotny, Klaus & Pennerstorfer, Dieter, 2012. "Ethnic Networks and the Location Choice of Migrants in Europe," Working Papers in Economics and Finance 2012-7, University of Salzburg.
  5. Klaus Nowotny, 2011. "Welfare Magnets, Taxation and the Location Decisions of Migrants to the EU," WIFO Working Papers 393, WIFO.
  6. S.M. Turab Hussain, 2005. "Rural to Urban Migration and Network Effects in an Extended Family Framework," Microeconomics Working Papers 22257, East Asian Bureau of Economic Research.
  7. Peter Huber & Klaus Nowotny & Julia Bock-Schappelwein, 2010. "Qualification Structure, Over- and Underqualification of the Foreign Born in Austria and the EU," FIW Research Reports series II-008, FIW.
  8. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2004. "Selection or Network Effects? Migration Flows into 27 OECD Countries, 1990-2000," IZA Discussion Papers 1104, Institute for the Study of Labor (IZA).
  9. Sergio Vergalli, 2006. "Dynamics in Immigration Community," Working Papers ubs0613, University of Brescia, Department of Economics.
  10. Natálie Reichlová, 2005. "Can the Theory of Motivation Explain Migration Decisions?," Working Papers IES 97, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised 2005.
  11. Robert Elliott & Joanne Kathryn Lindley, 2006. "Immigrant Wage Differentials, Ethnicity and Occupational Clustering," Working Papers 2006008, The University of Sheffield, Department of Economics, revised May 2006.

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