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Repercussions of negatively selective migration for the behavior of non-migrants when preferences are social

Author

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  • Stark, Oded
  • Budzinski, Wiktor

Abstract

We study how the work effort and output of non-migrants in a village economy are affected when a member of the village population migrates. Given that individuals dislike low relative income, and that migration modifies the social space of the non-migrants, we show why and how the non-migrants adjust their work effort and output in response to the migration-generated change in their social space. When migration is negatively selective such that the least productive individual departs, the output of the non-migrants increases. While as a consequence of this migration statically calculated average productivity rises, we identify a dynamic repercussion that compounds the static one.

Suggested Citation

  • Stark, Oded & Budzinski, Wiktor, 2019. "Repercussions of negatively selective migration for the behavior of non-migrants when preferences are social," Journal of Demographic Economics, Cambridge University Press, vol. 85(2), pages 165-179, June.
    • Handle: RePEc:cup:demeco:v:85:y:2019:i:2:p:165-179_3
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    Cited by:

    1. Oded Stark & Wiktor Budzinski, 2021. "A social‐psychological reconstruction of Amartya Sen’s measures of inequality and social welfare," Kyklos, Wiley Blackwell, vol. 74(4), pages 552-566, November.
    2. Oded Stark & Grzegorz Kosiorowski, 2021. "Turning relative deprivation into a performance incentive device," The Journal of Mathematical Sociology, Taylor & Francis Journals, vol. 45(1), pages 22-36, January.

    More about this item

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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