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Dynamics in Immigration Community

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Sergio Vergalli

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Abstract

In this paper, we present a theorethical model that tries to investigate the observable hysteresis process in the migration dynamic. In the model the migration choice depends not only on the wage differential, but also on a U-shaped benefit function of a community of homogenous ethnic individuals, modelled according to the "theory of clubs". The theoretical results, based on real option theory, explain that the observable "jumps" in the migration flows could depend on two variables: the number of coordinated immigrants and the dimension of the community. In fact, the migration choice is procrastinated until a critical mass is reached. Moreover, some possible rigidities in the adjustment of the district dimension, as regards the optimal levels, can magnify the hysteresis process.

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Paper provided by University of Brescia, Department of Economics in its series Working Papers with number ubs0613.

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Date of creation: 2006
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Handle: RePEc:ubs:wpaper:ubs0613

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  2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416. [Downloadable!] (restricted)
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  4. 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 200216, Rutgers University, Department of Economics. [Downloadable!]
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  5. Burda,M.C., 1995. "Migration and the Option Value of Waiting," Papers 597, Stockholm - International Economic Studies.
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  6. Nicola Daniele Coniglio, 2004. "Migropolis: migration networks and formation of ethnic clusters in cities," ERSA conference papers ersa04p146, European Regional Science Association. [Downloadable!]
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  9. Michele Moretto & Sergio Vergalli, 2005. "Migration dynamics," Working Papers ubs0507, University of Brescia, Department of Economics. [Downloadable!]
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  10. McDonald, Robert & Siegel, Daniel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, MIT Press, vol. 101(4), pages 707-27, November. [Downloadable!] (restricted)
  11. Axel Heitmueller, 2003. "Co-ordination Failures in Network Migration," CERT Discussion Papers 0302, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
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  12. Locher, Lilo, 2001. "Testing for the Option Value of Migration," IZA Discussion Papers 405, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Bartolini, Leonardo, 1993. "Competitive runs : The case of a ceiling on aggregate investment," European Economic Review, Elsevier, vol. 37(5), pages 921-948, June. [Downloadable!] (restricted)
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  1. Amedeo Fossati & Rosella Levaggi, 2008. "Delay is not the answer: waiting time in health care & income redistribution," Working Papers 0801, University of Brescia, Department of Economics. [Downloadable!]
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