Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S
AbstractThis paper addresses the question: Why and where do immigrants cluster? We examine the relative importance and interaction of two alternative explanations of immigrant clustering: (1) network externalities and (2) herd behavior. We advance the theory by presenting a framework encompassing both network and herd effects, and by delineating various types of network and herd effects in our empirical work. In order to distinguish between herd and network externalities, we use the Mexican Migration Project data. Our empirical results show that both network externalities and herds have significant effects on the migrant’s decision of where to migrate. Moreover, the significance and size of the effects vary according to the legal status of the migrant and whether the migrant is a “new” or a “repeat” migrant. The network-externality effect has an inverse U shape, not simply a linear positive effect as often presented in the literature. Neglecting herds and/or networks, or the inverse U shape of network effects leads to faulty conclusions about migrant behavior.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 551.
Length: 44 pages
Date of creation: Aug 2002
Date of revision:
Publication status: published in: Research in Labor Economics, 2007, 26, 199-229
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Ira N. Gang & Thomas Bauer & Gil S. Epstein, 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S," Departmental Working Papers, Rutgers University, Department of Economics 200216, Rutgers University, Department of Economics.
- Bauer, Thomas & Epstein, Gil S & Gang, Ira, 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the US," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3505, C.E.P.R. Discussion Papers.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-09-11 (All new papers)
- NEP-NET-2002-09-11 (Network Economics)
- NEP-URE-2002-09-11 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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IZA Discussion Papers
578, Institute for the Study of Labor (IZA).
- Francisco Rivera-Batiz & Myeong-Su Yun & Ira Gang, 2002. "Economic Strain, Ethnic Concentration and Attitudes Towards Foreigners in the European Union," Departmental Working Papers, Rutgers University, Department of Economics 200214, Rutgers University, Department of Economics.
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- Winters, Paul C. & de Janvry, Alain & Sadoulet, Elisabeth, 1999. "Family And Community Networks In Mexico-U.S. Migration," Working Papers, University of New England, School of Economics 12907, University of New England, School of Economics.
- Bauer, Thomas & Gang, Ira, 1998.
"Temporary Migrants from Egypt: How Long Do They Stay Abroad?,"
CEPR Discussion Papers, C.E.P.R. Discussion Papers
2003, C.E.P.R. Discussion Papers.
- Gang, Ira N. & Bauer, Thomas K., 1998. "Temporary Migrants From Egypt: How Long Do They Stay Abroad?," IZA Discussion Papers 3, Institute for the Study of Labor (IZA).
- Epstein, Gil S, 2002.
"Informational Cascades and Decision to Migrate,"
CEPR Discussion Papers, C.E.P.R. Discussion Papers
3287, C.E.P.R. Discussion Papers.
- Katharine Donato & Jorge Durand & Douglas Massey, 1992. "Stemming the tide? Assessing the deterrent effects of the immigration reform and control act," Demography, Springer, Springer, vol. 29(2), pages 139-157, May.
- McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, Elsevier, vol. 3(4), pages 303-328, November.
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