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Direct evidence on risk attitudes and migration

Author

Listed:
  • Jaeger, David A.
  • Dohmen, Thomas J.
  • Falk, Armin
  • Huffman, David
  • Sunde, Uwe
  • Bonin, Holger

Abstract

It has long been hypothesized that individuals’ migration propensities depend on their risk attitudes, but the empirical evidence has been limited and indirect. We use newly available data from the German Socio-Economic Panel to measure directly the relationship between migration and risk attitudes. We find that individuals who are more willing to take risks are more likely to migrate. Our estimates are substantial compared to unconditional migration probabilities, as well the effects of conventional determinants of migration, and are robust to controlling for a variety of demographic characteristics. We find no evidence that our results are the result of reverse causality.

Suggested Citation

  • Jaeger, David A. & Dohmen, Thomas J. & Falk, Armin & Huffman, David & Sunde, Uwe & Bonin, Holger, 2010. "Direct evidence on risk attitudes and migration," Munich Reprints in Economics 19528, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:19528
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    JEL classification:

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

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