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Informational Cascades and Decision to Migrate

  • Epstein, Gil S.

    ()

    (Bar-Ilan University)

We introduce the idea that informational cascades can explain the observed regularity that emigrants from the same locations also tend to choose the same foreign locations. Thus informational cascades generate herd behavior. Herd behavior is compared with the network externalities explanation of the same phenomenon. The relation between social tensions and herd behavior is observed when local populations are xenophobic.

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File URL: http://ftp.iza.org/dp445.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 445.

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Length: 25 pages
Date of creation: Mar 2002
Date of revision:
Publication status: published in: Gil S. Epstein and Ira N. Gang (eds.): Migration and Culture, Emerald Publishing, Bingley, 2010, 25-44
Handle: RePEc:iza:izadps:dp445
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  1. Epstein, Gil S. & Ward-Warmedinger, Melanie E., 2002. "Perceived Income, Promotion and Incentive Effects," IZA Discussion Papers 435, Institute for the Study of Labor (IZA).
  2. Chiswick, Barry R & Miller, Paul M, 1996. "Ethnic Networks and Language Proficiency among Immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(1), pages 19-35, February.
  3. Bertola, Giuseppe & Hochguertel, Stefan & Koeniger, Winfried, 2002. "Dealer Pricing of Consumer Credit," CEPR Discussion Papers 3160, C.E.P.R. Discussion Papers.
  4. Elise Brezis & Paul Krugman, 1996. "Immigration, investment, and real wages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(1), pages 83-93, February.
  5. King, Stephen P., 1995. "Search with free-riders," Journal of Economic Behavior & Organization, Elsevier, vol. 26(2), pages 253-271, March.
  6. Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 797-817.
  7. Giulio Fella & Paola Manzini & Marco Mariotti, 2002. "Does Divorce Law Matter?," Working Papers 454, Queen Mary University of London, School of Economics and Finance.
  8. Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010. "A theory of Fads, Fashion, Custom and cultural change as informational Cascades," Levine's Working Paper Archive 1193, David K. Levine.
  9. Scharfstein, David. & Stein, Jeremy C., 1988. "Herd behavior and investment," Working papers WP 2062-88., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  10. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-30, September.
  11. Joshua D. Angrist & Adriana D. Kugler, 2003. "Protective or counter-productive? labour market institutions and the effect of immigration on eu natives," Economic Journal, Royal Economic Society, vol. 113(488), pages F302-F331, 06.
  12. Fertig, Michael & Schmidt, Christoph M, 2002. "The Perception of Foreigners and Jews in Germany - A Structural Analysis of a Large Opinion Survey," CEPR Discussion Papers 3222, C.E.P.R. Discussion Papers.
  13. Sibley, Christopher W. & Walsh, Patrick Paul, 2002. "Earnings Inequality and Transition: A Regional Analysis of Poland," IZA Discussion Papers 441, Institute for the Study of Labor (IZA).
  14. Jeffrey Church & Ian King, 1993. "Bilingualism and Network Externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 337-45, May.
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