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Return and Dynamics: The Path of Labor Migration When Workers Differ in Their Skills and Information Is Asymmetric

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  • Stark, Oded

Abstract

An implementation of the theory of labor migration under asymmetric information shows that return migration arises from the reinstatement of informational symmetry that induces low-skill workers, who are no longer pooled with high-skill workers, to return. When workers in an occupation constitute more than two skill levels, say four (without loss of generality), the following patterns emerge: migration is sequential, that is, it proceeds in waves; each wave breaks into workers who return and workers who stay; within waves the returning migrants are the low-skill workers; and the average skill level of migrants is rising in the order of their wave. Copyright 1995 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Stark, Oded, 1995. " Return and Dynamics: The Path of Labor Migration When Workers Differ in Their Skills and Information Is Asymmetric," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(1), pages 55-71, March.
  • Handle: RePEc:bla:scandj:v:97:y:1995:i:1:p:55-71
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    Cited by:

    1. Bauer, Thomas & Gang, Ira, 1998. "Temporary Migrants from Egypt: How Long Do They Stay Abroad?," CEPR Discussion Papers 2003, C.E.P.R. Discussion Papers.
    2. Brücker, Herbert & Schröder, Philipp J. H., 2006. "International Migration with Heterogeneous Agents: Theory and Evidence," IZA Discussion Papers 2049, Institute for the Study of Labor (IZA).
    3. Dequiedt, Vianney & Zenou, Yves, 2013. "International migration, imperfect information, and brain drain," Journal of Development Economics, Elsevier, vol. 102(C), pages 62-78.
    4. Damien Besancenot & Radu Vranceanu, 2008. "Migratory Policy In Developing Countries: How To Bring Best People Back?," CEPN Working Papers halshs-00344929, HAL.
    5. Katarzyna Budnik, 2011. "Temporary migration in theories of international mobility of labour," Bank i Kredyt, Narodowy Bank Polski, vol. 42(6), pages 7-48.
    6. Beate Grundig & Carsten Pohl, 2006. "Qualifikationsspezifische Arbeitslosigkeit : gibt es Unterschiede zwischen Deutschen und Immigranten?," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(04), pages 33-36, 08.
    7. Lutz Hendricks, "undated". "Migration and Human Capital," Working Papers 97/6, Arizona State University, Department of Economics.
    8. Topa, Gabriela & Moriano, Juan A. & Moreno, Ana, 2012. "Psychosocial determinants of financial planning for retirement among immigrants in Europe," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 527-537.
    9. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
    10. Helmenstein, Christian & Yegorov, Yury, 2000. "The dynamics of migration in the presence of chains," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 307-323, February.
    11. Oded Stark & Christian Helmenstein & Yury Yegorov, 1997. "Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 4(3), pages 307-324, July.
    12. Bellemare, Charles, 2004. "Identification and Estimation of Economic Models of Outmigration Using Panel Attrition," IZA Discussion Papers 1065, Institute for the Study of Labor (IZA).
    13. Ira N. Gang & Thomas Bauer, 2000. "Return Migrants From Egypt: How Long Did They Stay Abroad?," Departmental Working Papers 199811, Rutgers University, Department of Economics.
    14. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August.
    15. Farré, Lídia & Fasani, Francesco, 2013. "Media exposure and internal migration — Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 102(C), pages 48-61.
    16. Catherine Y. Co & Ira N. Gang & Myeong-Su Yun, 2000. "Returns to returning," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 57-79.
    17. Bellemare, C., 2003. "Economic Assimilation and Outmigration of Immigrants in West-Germany," Discussion Paper 2003-65, Tilburg University, Center for Economic Research.
    18. Mika Haapanen, 2001. "Labour market performance and determinants of migration by gender and region of origin," ERSA conference papers ersa01p130, European Regional Science Association.
    19. Gianluca Orefice, 2014. "Offshoring, migrants and native workers: The optimal choice under asymmetric information," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(2), pages 179-201, March.
    20. Damien Besancenot & Radu Vranceanu, 2008. "Migratory Policy In Developing Countries: How To Bring Best People Back?," Working Papers halshs-00344929, HAL.
    21. Jelili, Riadh Ben & Jellal, Mohamed, 2002. "Transferts des migrants tunisiens et qualification – théorie et évidence," L'Actualité Economique, Société Canadienne de Science Economique, vol. 78(3), pages 397-410, Septembre.
    22. repec:ces:ifodre:v:13:y:2006:i:04:p:s.33-36 is not listed on IDEAS

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