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Where do Migrants Go? Risk-Aversion, Mobility Costs and the Locational Choice of Migrants

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  • Daveri, Francesco
  • Faini, Riccardo

Abstract

As part of their effort to pool individual risk, households consider spreading their members over a plurality of locations, both inside and outside their country of origin. At the same time, the world is ridden with ‘Chinatowns’ and ‘Little Italies’: people, whenever they move, tend to bunch in the same location. Bunching would appear fundamentally at odds with the desire to diversify risk. In this paper we provide a framework to reconcile both spatial bunching and the spread of migrants, combining risk-aversion and concavity of mobility costs at the household level. Evidence from Southern Italy is consistent with the main predictions from our model.

Suggested Citation

  • Daveri, Francesco & Faini, Riccardo, 1996. "Where do Migrants Go? Risk-Aversion, Mobility Costs and the Locational Choice of Migrants," CEPR Discussion Papers 1540, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1540
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    Cited by:

    1. Jennifer Hunt, 2000. "Why Do People Still Live in East Germany?," NBER Working Papers 7564, National Bureau of Economic Research, Inc.
    2. A. Daniela Cristina, 2008. "What Sways the Decision to Migrate? An Empirical Analysis of the Argentinean Case," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 0(1), pages 7-30, January.
    3. Michiel Van Leuvensteijn & Ashok Parikh, 2002. "How different are the determinants of population versus labour migration in Germany?," Applied Economics Letters, Taylor & Francis Journals, vol. 9(11), pages 699-703.

    More about this item

    Keywords

    bunching; Migration; risk diversification;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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