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Testing Classic Theories of Migration in the Lab

Author

Listed:
  • Batista, Catia

    (Nova School of Business and Economics)

  • McKenzie, David

    (World Bank)

Abstract

We test different classic migration theories by using incentivized laboratory experiments to investigate how potential migrants decide between working in different destinations. We test theories of income maximization, skill-selection, and multi-destination choice as we vary migration costs, liquidity constraints, risk, social benefits, and incomplete information. The standard income maximization model leads to a much higher migration rate and more negative skill-selection than occurs when migration decisions take place under more realistic assumptions. The independence of irrelevant alternatives assumption mostly holds when decisions just involve wages, costs, and liquidity constraints, but breaks down once we add risk and incomplete information.

Suggested Citation

  • Batista, Catia & McKenzie, David, 2021. "Testing Classic Theories of Migration in the Lab," IZA Discussion Papers 14717, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14717
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    Cited by:

    1. Batista, Catia & McKenzie, David, 2023. "Testing classic theories of migration in the lab," Journal of International Economics, Elsevier, vol. 145(C).
    2. Batista, Catia & Costa, David M. & Freitas, Pedro & Lima, Gonçalo & Reis, Ana B., 2025. "What matters for the decision to study abroad? A lab-in-the-field experiment in Cape Verde," Journal of Development Economics, Elsevier, vol. 173(C).
    3. Didier Ruedin, 2021. "Decision-Making Under Uncertainty: African Migrants in the Spotlight," Social Inclusion, Cogitatio Press, vol. 9(1), pages 182-185.
    4. repec:grz:wpsses:2021-02 is not listed on IDEAS
    5. Yashodhan Ghorpade & Muhammad Saad Imtiaz & Theingie Han, 2024. "High-Skilled Migration from Myanmar : Responses to Signals of Political and Economic Stabilization," Policy Research Working Paper Series 10878, The World Bank.
    6. Frohnweiler, Sarah & Beber, Bernd & Ebert, Cara, 2024. "Information frictions, belief updating and internal migration: Evidence from Ghana and Uganda," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 171, pages 1-17.
    7. Antonio Basile & Mariano Gallo, 2025. "Investigating the Impact of Accessibility on Internal Migration Flows in Italy Through the Calibration of Multiple Linear Regression Models," World, MDPI, vol. 6(2), pages 1-28, April.
    8. Jules Gazeaud & Eric Mvukiyehe & Olivier Sterck, 2023. "Cash Transfers and Migration: Theory and Evidence from a Randomized Controlled Trial," The Review of Economics and Statistics, MIT Press, vol. 105(1), pages 143-157, January.
    9. Bertoni, Marco & Chattopadhyay, Debdeep & Gu, Yuanyuan, 2023. "Medical Brain Drain – Assessing the Role of Job Attributes and Individual Traits," IZA Discussion Papers 16243, Institute of Labor Economics (IZA).
    10. Cátia Batista & Pedro C. Vicente, 2025. "Is Mobile Money Changing Rural Africa? Evidence from a Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 107(3), pages 835-844, May.
    11. Frohnweiler, Sarah & Beber, Bernd & Ebert, Cara, 2022. "Information Frictions, Belief Updating and Internal Migration: Evidence from Ghana and Uganda," IZA Discussion Papers 15826, Institute of Labor Economics (IZA).
    12. Tijan L. Bah & C tia Batista, 2018. "Understanding willingness to migrate illegally: Evidence from a lab in the field experiment," NOVAFRICA Working Paper Series wp1803, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    13. Frohnweiler, Sarah & Beber, Bernd & Ebert, Cara, 2024. "Information frictions, belief updating and internal migration: Evidence from Ghana and Uganda," Journal of Development Economics, Elsevier, vol. 171(C).
    14. Bah, Tijan L. & Batista, Catia & Gubert, Flore & McKenzie, David, 2023. "Can information and alternatives to irregular migration reduce “backway” migration from The Gambia?," Journal of Development Economics, Elsevier, vol. 165(C).
    15. Heidland Tobias, 2025. "Zehn Jahre „Wir schaffen das“: Lehren aus und über Migrationsforschung," Wirtschaftsdienst, Sciendo, vol. 105(9), pages 628-631.

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    Keywords

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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