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A Theory of Migration as a Response to Occupational Stigma

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  • Stark, Oded
  • Fan, Simon C.

Abstract

A theory is developed of labor migration that is prompted by a desire to avoid "social humiliation." In a general equilibrium framework it is shown that as long as migration can reduce humiliation sufficiently, migration will occur even between two identical economies. Migration increases the number of individuals who choose to perform degrading jobs and consequently, migration lowers the price of the good produced in the sector that is associated with low social status. Moreover, the greater an individual's aversion to performing degrading jobs, the more likely it is that he will experience a welfare gain when the economy opens up.

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File URL: http://mpra.ub.uni-muenchen.de/22507/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21688.

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Date of creation: 2010
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Handle: RePEc:pra:mprapa:21688

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Keywords: Migration; Social distance; Occupational status; Social exposure gains; General equilibrium;

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References

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  1. Emilia Del Bono & Andrea Weber, 2008. "Do Wages Compensate for Anticipated Working Time Restrictions? Evidence from Seasonal Employment in Austria," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 26, pages 181-221.
  2. Chaim Fershtman & Yoram Weiss, 1991. "Social Status, Culture and Economic Performance," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 1007, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  3. Paul Gertler & Manisha Shah & Stefano M. Bertozzi, 2005. "Risky Business: The Market for Unprotected Commercial Sex," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 113(3), pages 518-550, June.
  4. Stark, Oded & Fan, C. Simon, 2007. "The Analytics of Seasonal Migration," Discussion Papers, University of Bonn, Center for Development Research (ZEF) 7124, University of Bonn, Center for Development Research (ZEF).
  5. George A. Akerlof, 1978. "A theory of social custom, of which unemployment may be one consequence," Special Studies Papers, Board of Governors of the Federal Reserve System (U.S.) 118, Board of Governors of the Federal Reserve System (U.S.).
  6. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 115(3), pages 715-753, August.
  7. Oded Stark & Christian Helmenstein & Yury Yegorov, 1997. "Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration," International Tax and Public Finance, Springer, Springer, vol. 4(3), pages 307-324, July.
  8. Yoram Weiss & Chaim Fershtman, 1997. "Social Status and Economic Performance: A Survey," University of Chicago - George G. Stigler Center for Study of Economy and State, Chicago - Center for Study of Economy and State 139, Chicago - Center for Study of Economy and State.
  9. Rosenzweig, Mark R. & Stark, Oded, 1987. "Consumption Smoothing, Migration and Marriage: Evidence from Rural India," Bulletins, University of Minnesota, Economic Development Center 7515, University of Minnesota, Economic Development Center.
  10. Stark, Oded & Micevska, Maja & Mycielski, Jerzy, 2009. "Relative poverty as a determinant of migration: Evidence from Poland," Economics Letters, Elsevier, Elsevier, vol. 103(3), pages 119-122, June.
  11. Richard J. Butler & John D. Worrall, 2008. "Wage and Injury Response to Shifts in Workplace Liability," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(2), pages 181-200, January.
  12. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, Econometric Society, vol. 65(5), pages 1005-1028, September.
  13. Gary S. Becker & Kevin M. Murphy & Ivan Werning, 2005. "The Equilibrium Distribution of Income and the Market for Status," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 113(2), pages 282-310, April.
  14. Diaz-Serrano, Luis & Hartog, Joop & Nielsen, Helena Skyt, 2003. "Compensating Wage Differentials for Schooling Risk in Denmark," IZA Discussion Papers 963, Institute for the Study of Labor (IZA).
  15. Stark, Oded & Taylor, J Edward, 1991. "Migration Incentives, Migration Types: The Role of Relative Deprivation," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 101(408), pages 1163-78, September.
  16. Stark, Oded & You Qiang Wang, 2002. "A Theory of Self-Segregation as a Response to Relative Deprivation," Royal Economic Society Annual Conference 2002, Royal Economic Society 168, Royal Economic Society.
  17. Lena Edlund & Evelyn Korn, 2002. "A Theory of Prostitution," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 110(1), pages 181-214, February.
  18. Bender, Keith A, 1998. " The Central Government-Private Sector Wage Differential," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 12(2), pages 177-220, April.
  19. Cole, Harold L & Mailath, George J & Postlewaite, Andrew, 1992. "Social Norms, Savings Behavior, and Growth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 100(6), pages 1092-1125, December.
  20. George A. Akerlof, 2007. "The Missing Motivation in Macroeconomics," American Economic Review, American Economic Association, American Economic Association, vol. 97(1), pages 5-36, March.
  21. Takatoshi Ito, 1997. "Purchasing Power Parity," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number ito_97-2.
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Citations

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Cited by:
  1. Stark, Oded, 2013. "Stressful integration," University of Tuebingen Working Papers in Economics and Finance, University of Tuebingen, Faculty of Economics and Social Sciences 56, University of Tuebingen, Faculty of Economics and Social Sciences.
  2. Stark, Oded, 2012. "Integration, social distress, and policy formation," Discussion Papers, University of Bonn, Center for Development Research (ZEF) 120179, University of Bonn, Center for Development Research (ZEF).
  3. Oded Stark & Walter Hyll & Yong Wang, 2010. "Endogenous Selection of Comparison Groups, Human Capital Formation, and Tax Policy," Vienna Economics Papers, University of Vienna, Department of Economics 1009, University of Vienna, Department of Economics.
  4. Stark, Oded & Kobus, Martyna & Jakubek, Marcin, 2011. "A concern about low relative income, and the alignment of utilitarianism with egalitarianism," Discussion Papers, University of Bonn, Center for Development Research (ZEF) 117257, University of Bonn, Center for Development Research (ZEF).
  5. Inga Heiland & Wilhelm Kohler, 2013. "Heterogeneous Workers, Trade, and Migration," CESifo Working Paper Series 4387, CESifo Group Munich.
  6. Stark, Oded & Jakubek, Marcin & Falniowski, Fryderyk, 2014. "Reconciling the Rawlsian and the utilitarian approaches to the maximization of social welfare," Economics Letters, Elsevier, Elsevier, vol. 122(3), pages 439-444.
  7. Dong, Baomin & Fu, Shihe & Gong, Jiong & Fan, Hanwen, 2014. "The Lame Drain," MPRA Paper 53825, University Library of Munich, Germany.
  8. Stark, Oded & Sorger, Gerhard, 2012. "Income redistribution going awry: The reversal power of the concern for relative deprivation," University of Tuebingen Working Papers in Economics and Finance, University of Tuebingen, Faculty of Economics and Social Sciences 47, University of Tuebingen, Faculty of Economics and Social Sciences.
  9. Nina Neubecker, 2013. "Low Occupational Prestige and Internal Migration in Germany," SOEPpapers on Multidisciplinary Panel Data Research 562, DIW Berlin, The German Socio-Economic Panel (SOEP).
  10. Stark, Oded & Fan, C. Simon, 2011. "Migration for degrading work as an escape from humiliation," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 77(3), pages 241-247, March.

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