RURAL LABOR MIGRATION: Migrant Network, Information, and Hysteresis
We investigate a rural household's decision to migrate part or all of its labor to urban areas. Labor migrates only when the expected return passes a hurdle rate that is affected by migration networks. We develop a dynamic model of incomplete information, and characterize the unique pure strategy perfect Bayesian equilibrium. Based on the predictions of the equilibrium, we develop a set of econometric models to estimate the migration decisions. Our results show that more current information helps migration, while the expectation of more information in the future may higher migration.
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- Bauer, Thomas K. & Epstein, Gil S. & Gang, Ira N., 2002.
"Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S,"
IZA Discussion Papers
551, Institute for the Study of Labor (IZA).
- Ira N. Gang & Thomas Bauer & Gil S. Epstein, 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S," Departmental Working Papers 200216, Rutgers University, Department of Economics.
- Bauer, Thomas & Epstein, Gil S & Gang, Ira, 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the US," CEPR Discussion Papers 3505, C.E.P.R. Discussion Papers.
- Epstein, Gil S., 2002.
"Informational Cascades and Decision to Migrate,"
IZA Discussion Papers
445, Institute for the Study of Labor (IZA).
- Elie Appelbaum & Aman Ullah, 1997.
"Estimation Of Moments And Production Decisions Under Uncertainty,"
The Review of Economics and Statistics,
MIT Press, vol. 79(4), pages 631-637, November.
- Elie Appelbaum & Aman Ullah, 1996. "Estimation of moments and production decisions under uncertainty," Working Papers 1996_9, York University, Department of Economics.
- Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-82, July.
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