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Coordination Failures in Network Migration

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  • Heitmueller, Axel

    ()
    (Cabinet Office, UK)

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 coordination 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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 770.

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Length: 12 pages
Date of creation: Apr 2003
Date of revision:
Publication status: published in: Manchester School, 2006, 74(6), 701-710
Handle: RePEc:iza:izadps:dp770

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Related research

Keywords: optimal network size; Pareto optimality; household migration networks; network externalities;

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References

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  1. 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.
  2. 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 3505, C.E.P.R. Discussion Papers.
  3. 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.
  4. Christian Dustmann & Ian Preston, 2000. "Racial and Economic Factors in Attitudes to Immigration," Econometric Society World Congress 2000 Contributed Papers 0839, Econometric Society.
  5. Rachel M. Friedberg & J. Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Working Papers 95-5, Brown University, Department of Economics.
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Citations

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Cited by:
  1. Sergio Vergalli, 2006. "Dynamics in Immigration Community," Working Papers ubs0613, University of Brescia, Department of Economics.
  2. 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).
  3. 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.
  4. Klaus Nowotny & Dieter Pennerstorfer, 2011. "Ethnic Networks and the Location Choice of Migrants in Europe," WIFO Working Papers 415, WIFO.
  5. Sergio Vergalli & Michele Moretto, 2005. "Migration Dynamics," Working Papers 2005.108, Fondazione Eni Enrico Mattei.
  6. 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.
  7. 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).
  8. 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.
  9. 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.
  10. Klaus Nowotny, 2011. "Welfare Magnets, Taxation and the Location Decisions of Migrants to the EU," WIFO Working Papers 393, WIFO.
  11. Sergio Vergalli, 2011. "Entry and Exit Strategies in Migration Dynamics," Journal of Labor Research, Springer, vol. 32(4), pages 362-389, December.

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