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

Author

Listed:
  • Daveri, F
  • Faini, R

Abstract

As part of their efforts to pool individual risks, households consider spreading their members over a multiplicity of locations both within their country of origin and abroad. At the same time, the world has innumerable Chinatown and Little Italies : when people move they tend to bunch in the same location. Bunching would appear to be fundamentally at odds with the desire for risk diversification. In this paper we provide a framework to reconcile spatial bunching and spreading of migrants, combining risk-aversion and concavity of mobility costs at the household level.

Suggested Citation

  • Daveri, F & Faini, R, 1996. "Where Do Migrants Go? Risk-Aversion, Mobility Costs and the Locational Choice of Migrants," Papers 290, Banca Italia - Servizio di Studi.
    • Handle: RePEc:fth:banita:290
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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. Gemma Larramona & Jesus Clemente & Pedro Garcia-Castrillo, 2004. "Illegal immigration and a heterogeneous labour force. When can quotas generate an internal conflict?," ERSA conference papers ersa04p125, European Regional Science Association.
    3. 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. 46(1), pages 7-30, Junio.
    4. 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

    RISK AVERSION ; MIGRANTS ; ITALY;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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