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Migratory Policy In Developing Countries: How To Bring Best People Back?

  • Damien Besancenot

    ()

    (CEPN - Centre d'Economie de l'Université de Paris Nord (ancienne affiliation) - Université Paris XIII - Paris Nord - CNRS : UMR7115)

  • Radu Vranceanu

    ()

    (Economics Department - ESSEC Business School)

This paper analyzes the decision of a migrant to return or stay within the framework of a signaling model withexogenous migratory costs. If employers have only imperfect information about the type of a worker and goodworkers migrate, bad workers might copy their strategy in order to get the same high wage as the good workers.Employers will therefore reduce the wage they pay to migrants and good workers incur a loss compared to theperfect information setup. In one hybrid equilibrium of the game, the more bad workers migrate, the higher theincentive for good workers to come back. Policy implications follow.

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Paper provided by HAL in its series CEPN Working Papers with number halshs-00344929.

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Date of creation: 15 Dec 2008
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Handle: RePEc:hal:cepnwp:halshs-00344929
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00344929
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  1. Anna Iara, 2006. "Skill Diffusion by Temporary Migration? Returns to Western European Working Experience in the EU Accession Countries," wiiw Balkan Observatory Working Papers 69, The Vienna Institute for International Economic Studies, wiiw.
  2. Matloob Piracha & Augustin de Coulon, 2003. "Self-Selection and the Performance of Return Migrants: the Source Country Perspective," CEP Discussion Papers dp0576, Centre for Economic Performance, LSE.
  3. Katz, Eliakim & Stark, Oded, 1987. "Migration, information and the costs and benefits of signalling," Regional Science and Urban Economics, Elsevier, vol. 17(3), pages 323-331, August.
  4. Ali Mansoor & Bryce Quillin, 2007. "Migration and Remittances : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 6920.
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