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The Role of Community in Migration Dynamics

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  • Sergio Vergalli

Abstract

In this paper, I have presented a theoretical model that investigates the observable hysteresis process in migration dynamics. In the model the migration choice depends not only on wage differential, but also on a U-shaped benefit function of a community of homogenous ethnic individuals, according to the 'theory of clubs'. The results, based on real option theory, explain that observable 'jumps' in migration flows could depend not only on exogenous shocks, but also on two endogenous variables: the number of coordinated immigrants and the dimension of the community. Indeed, migration choice is delayed until a critical mass of immigrants is reached and possible rigidities of optimal district size could magnify this hysteresis process. Copyright 2008 The Author. Journal compilation 2008 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd.

Suggested Citation

  • Sergio Vergalli, 2008. "The Role of Community in Migration Dynamics," LABOUR, CEIS, vol. 22(3), pages 547-567, September.
  • Handle: RePEc:bla:labour:v:22:y:2008:i:3:p:547-567
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    Citations

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    Cited by:

    1. Michele Moretto & Sergio Vergalli, 2008. "Managing Migration through Quotas: an Option-theory Perspective," Working Papers 2008.51, Fondazione Eni Enrico Mattei.
    2. M. Moretto & Sergio Vergalli, 2008. "Migration dynamics," Journal of Economics, Springer, vol. 93(3), pages 223-265, April.
    3. Michele Moretto & Sergio Vergalli, 2010. "Managing Migration Through Conflicting Policies: An Option-Theory Perspective," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(s1), pages 318-342, July.
    4. Zakharenko, Roman, 2012. "Human capital acquisition and international migration in a model of educational market," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 808-816.
    5. repec:hur:ijaraf:v:7:y:2017:i:3:p:6-13 is not listed on IDEAS
    6. Elsner, Benjamin & Narciso, Gaia & Thijssen, Jacco J. J., 2013. "Migrant Networks and the Spread of Misinformation," IZA Discussion Papers 7863, Institute for the Study of Labor (IZA).
    7. José Romero, 2013. "What circumstances lead a government to promote brain drain?," Journal of Economics, Springer, vol. 108(2), pages 173-202, March.
    8. Christian Schmidt, 2011. "Commuting and Migration Decisions under Cost Uncertainty," ERSA conference papers ersa10p1481, European Regional Science Association.
    9. Sergio Vergalli, 2011. "Entry and Exit Strategies in Migration Dynamics," Journal of Labor Research, Springer, vol. 32(4), pages 362-389, December.
    10. Buonanno, Paolo & Pazzona, Matteo, 2014. "Migrating mafias," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 75-81.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H49 - Public Economics - - Publicly Provided Goods - - - Other
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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