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Financing Student Migration: Evidence for a Commitment Problem

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  • Romuald Méango

Abstract

This paper develops and tests a model of profit-sharing arrangement over returns to a student migration investment. Taking advantage of a unique dataset on Cameroonian students, I find evidence of non-commitment bargaining between student, parents and an outside helper. The commitment problem arises because the coalition of parents and student has strong incentives not to abide by the outcome of the ex ante negotiation with the helper. This finding suggests some inefficiency of the decision process, in that students from credit-constrained families might not benefit from the support of a helper, even though the returns to their migration can be significant.

Suggested Citation

  • Romuald Méango, 2014. "Financing Student Migration: Evidence for a Commitment Problem," ifo Working Paper Series 187, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_187
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    File URL: https://www.ifo.de/DocDL/IfoWorkingPaper-187.pdf
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    References listed on IDEAS

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    Cited by:

    1. Björn Kauder, 2016. "Incorporation of municipalities and population growth: A propensity score matching approach," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 539-554, August.

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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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