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Reexamining the Factors Influencing Migration Decisions

Author

Listed:
  • Yishan Liu

    (Graduate School of Economics, Kobe University, JAPAN)

  • Junyi Shen

    (Research Institute for Economics and Business Administration, Kobe University, JAPAN)

Abstract

This study explores the impact of risk attitudes and endowment effects on migration decisions under different motivations and migration distance conditions, focusing on the variability between short- and long-distance migration. Using data from Australia, we compare two measures of risk attitudes—a continuous risk index and a categorical risk threshold approach—and further test these effects in conjunction with household-level cluster analysis. The findings suggest that the effects of risk attitudes on migration decisions are likely to operate in long-distance migration when motivation is considered. In addition, we demonstrate that the endowment effect does not play a role in long-distance but plays a key role in short-distance migration decisions. Furthermore, we introduce a clustering-based analysis to reveal the impact of variations in family background on migration decisions. We find that the differences in coefficient estimates between the clustering and main models is negligible, indicating that the results of the main model remain robust and reliable after accounting for potential group differences.

Suggested Citation

  • Yishan Liu & Junyi Shen, 2025. "Reexamining the Factors Influencing Migration Decisions," Discussion Paper Series DP2025-34, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2025-34
    as

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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2025-34.pdf
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    References listed on IDEAS

    as
    1. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    2. Vladimir Balaz & Allan M. Williams, 2011. "Risk attitudes and migration experience," Journal of Risk Research, Taylor & Francis Journals, vol. 14(5), pages 583-596, May.
    3. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    4. Bauernschuster, Stefan & Falck, Oliver & Heblich, Stephan & Suedekum, Jens & Lameli, Alfred, 2014. "Why are educated and risk-loving persons more mobile across regions?," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 56-69.
    5. Thomas Niedomysl, 2011. "How Migration Motives Change over Migration Distance: Evidence on Variation across Socio-economic and Demographic Groups," Regional Studies, Taylor & Francis Journals, vol. 45(6), pages 843-855.
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    Keywords

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    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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