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Direct evidence on risk attitudes and migration

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  • Jaeger, David A.
  • Dohmen, Thomas J.
  • Falk, Armin
  • Huffman, David
  • Sunde, Uwe
  • Bonin, Holger

Abstract

It has long been hypothesized that individuals’ migration propensities depend on their risk attitudes, but the empirical evidence has been limited and indirect. We use newly available data from the German Socio-Economic Panel to measure directly the relationship between migration and risk attitudes. We find that individuals who are more willing to take risks are more likely to migrate. Our estimates are substantial compared to unconditional migration probabilities, as well the effects of conventional determinants of migration, and are robust to controlling for a variety of demographic characteristics. We find no evidence that our results are the result of reverse causality.

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Bibliographic Info

Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 19528.

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Date of creation: 2010
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Publication status: Published in Review of Economics and Statistics 3 92(2010): pp. 684-689
Handle: RePEc:lmu:muenar:19528

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  1. Jaeger David A. & Dohmen Thomas & Falk Armin & Huffman David & Sunde Uwe & Bonin Holger, 2008. "Direct Evidence in Risk Attitudes and Migration," ROA Research Memorandum 011, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  2. Dohmen, Thomas J & Falk, Armin & Huffman, David & Sunde, Uwe, 2008. "The Intergenerational Transmission of Risk and Trust Attitudes," CEPR Discussion Papers 6844, C.E.P.R. Discussion Papers.
  3. Stark, Oded & Levhari, David, 1982. "On Migration and Risk in LDCs," Economic Development and Cultural Change, University of Chicago Press, vol. 31(1), pages 191-96, October.
  4. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
  5. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Juergen Schupp & Gert Wagner, 2005. "Individual Risk Attitudes: New Evidence from a Large, Representative, Experimentally-Validated Survey," Working Papers 2096, The Field Experiments Website.
  6. Katz, Eliakim & Stark, Oded, 1986. "Labor Migration and Risk Aversion in Less Developed Countries," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 134-49, January.
  7. Francesco Daveri & Riccardo Faini, . "Where do migrants go?," Working Papers 124, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  8. Heitmueller, Axel, 2002. "Unemployment Benefits, Risk Aversion, and Migration Incentives," IZA Discussion Papers 610, Institute for the Study of Labor (IZA).
  9. George J. Borjas, 2001. "Does Immigration Grease the Wheels of the Labor Market?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(1), pages 69-134.
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