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Cumulative Causation at Work: Intergenerational Transfers and Social Capital in a Spatially Varied Economy

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  • A. Gentili
  • L. Ferretti

Abstract

This paper models the dynamic of migration with a particular focus on the cumulative process that causes a variation in the distribution of income in sending communities and therefore a variation in the distribution of skills across different cohorts. The model provides a theoretical framework to Cumulative Causation theory of migration and specifically a theoretical rationale behind the use of migration prevalence ratio to study migration flows. Moreover the model shows how brain drain (in sending communities) and negative cohort effect in terms of education (in receiving communities) are the result of a positive selection of migrants in terms of skills if there is a intergenerational transmission of education.

Suggested Citation

  • A. Gentili & L. Ferretti, 2013. "Cumulative Causation at Work: Intergenerational Transfers and Social Capital in a Spatially Varied Economy," Working Papers wp868, Dipartimento Scienze Economiche, Universita' di Bologna.
  • Handle: RePEc:bol:bodewp:wp868
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    References listed on IDEAS

    as
    1. David McKenzie & Hillel Rapoport, 2010. "Self-Selection Patterns in Mexico-U.S. Migration: The Role of Migration Networks," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 811-821, November.
    2. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
    3. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
    4. David McKenzie & Hillel Rapoport, 2006. "Can Migration Reduce Educational Attainments? Depressing Evidence from Mexico," CReAM Discussion Paper Series 0601, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    5. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-867, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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