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On a Variation in the Economic Performance of Migrants by their Home Country's Wage

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  • Stark, Oded

Abstract

While the economic performance of migrants in the receiving country undoubtedly depends on qualifications, it is also affected by inclinations. Given the probability of return migration, we establish a behavioral link between the incentive of migrants to save in their country of destination and the prevailing wage rate in their home country. We show that migrants coming from a low-wage country optimally save more than migrants from a high-wage country. We allude to policy and research implications suggested by this savings behavior.

Suggested Citation

  • Stark, Oded, 2000. "On a Variation in the Economic Performance of Migrants by their Home Country's Wage," Discussion Papers 281248, University of Bonn, Center for Development Research (ZEF).
    • Handle: RePEc:ags:ubzefd:281248
    DOI: 10.22004/ag.econ.281248
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    Cited by:

    1. Zimmermann, Roukayatou & Ahmed, Faruk, "undated". "Rice Biotechnology and Its Potential to Combat Vitamin A Deficiency: A Case Study of Golden Rice in Bangladesh," Discussion Papers 276268, University of Bonn, Center for Development Research (ZEF).
    2. Steve Boucher & Oded Stark & J. Edward Taylor, 2009. "A Gain with a Drain? Evidence from Rural Mexico on the New Economics of the Brain Drain," International Economic Association Series, in: János Kornai & László Mátyás & Gérard Roland (ed.), Corruption, Development and Institutional Design, chapter 6, pages 100-119, Palgrave Macmillan.
    3. Stark, Oded & Wang, You Qiang, 2005. "Towards a Theory of Self-Segregation as a Response to Relative Deprivation: Steady-State Outcomes and Social Welfare," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 223-242.
    4. Abdallah, Jumanne & Sauer, Johannes, "undated". "Efficiency and Biodiversity – Empirical Evidence from Tanzania," Discussion Papers 276264, University of Bonn, Center for Development Research (ZEF).
    5. Mduma, John K. & Wobst, Peter, "undated". "Village Level Labor Market Development in Tanzania: Evidence from Spatial Econometrics," Discussion Papers 276260, University of Bonn, Center for Development Research (ZEF).
    6. Oded Stark, 2006. "Status Aspirations, Wealth Inequality, and Economic Growth," Review of Development Economics, Wiley Blackwell, vol. 10(1), pages 171-176, February.
    7. Mouawiya Al-Awad & Adam Elhiraika, 2003. "Cultural Effects and Savings: Evidence from Immigrants to the United Arab Emirates," Journal of Development Studies, Taylor & Francis Journals, vol. 39(5), pages 139-151.
    8. Oded Stark, 2007. "Work Effort, Moderation in Expulsion, and Illegal Migration," Review of Development Economics, Wiley Blackwell, vol. 11(4), pages 585-590, November.

    More about this item

    Keywords

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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