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Inequality and migration: A behavioral link

  • Stark, Oded

We provide an analytical-behavioral explanation for the observed positive relationship between income inequality, as measured by the Gini coefficient, and the incentive to migrate. We show that a higher total relative deprivation of a population leads to a stronger incentive to engage in migration for a given level of a population’s income; that total relative deprivation is positively related to the Gini coefficient; and that, consequently, the Gini coefficient and migration are positively correlated, holding the population’s income constant.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4J6WNYY-1/2/7f58068134f0cab1005e7886702fdeae
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 91 (2006)
Issue (Month): 1 (April)
Pages: 146-152

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Handle: RePEc:eee:ecolet:v:91:y:2006:i:1:p:146-152
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Rosen, Sherwin, 1986. "Prizes and Incentives in Elimination Tournaments," American Economic Review, American Economic Association, vol. 76(4), pages 701-15, September.
  2. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-64, October.
  3. George J. Borjas, 1987. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc.
  4. David Andolfatto, 2000. "A Theory of Inalienable Property Rights," Cahiers de recherche CREFE / CREFE Working Papers 110, CREFE, Université du Québec à Montréal.
  5. Thomas Liebig & Alfonso Sousa-Poza, 2004. "Migration, Self-Selection and Income Inequality: An International Analysis," Kyklos, Wiley Blackwell, vol. 57(1), pages 125-146, 02.
  6. Stark, Oded, 1990. "A Relative Deprivation Approach to Performance Incentives in Career Games and Other Contests," Kyklos, Wiley Blackwell, vol. 43(2), pages 211-27.
  7. Clark, Andrew E. & Oswald, Andrew J., 1994. "Satisfaction and comparison income," CEPREMAP Working Papers (Couverture Orange) 9408, CEPREMAP.
  8. Luttmer, Erzo F. P., 2004. "Neighbors as Negatives: Relative Earnings and Well-Being," Working Paper Series rwp04-029, Harvard University, John F. Kennedy School of Government.
  9. Oded Stark & You Qiang Wang, 2000. "A Theory of Migration as a Response to Relative Deprivation," German Economic Review, Verein für Socialpolitik, vol. 1(2), pages 131-143, 05.
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