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Out-migration, wealth constraints, and the quality of local amenities

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  • Dustmann, Christian
  • Okatenko, Anna

Abstract

The relation between income and migration intentions can be monotonically decreasing, increasing, or inverse U-shaped, dependent on the level of migration cost relative to wealth and if individuals are credit constrained. Using unique individual level data, covering countries in three geographic regions – sub-Saharan Africa, Asia, and Latin America – we show that migration intentions respond to individual wealth, and that the pattern differs across the country groups studied in a manner compatible with the predictions of our simple model. We also show that contentment with various dimensions of local amenities, such as public services and security, are key determinants of migration intentions.

Suggested Citation

  • Dustmann, Christian & Okatenko, Anna, 2014. "Out-migration, wealth constraints, and the quality of local amenities," Journal of Development Economics, Elsevier, vol. 110(C), pages 52-63.
  • Handle: RePEc:eee:deveco:v:110:y:2014:i:c:p:52-63
    DOI: 10.1016/j.jdeveco.2014.05.008
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    Keywords

    Migration; Wealth constraints; Migration intentions; Local amenities;

    JEL classification:

    • 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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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