Causes of migration - ANS New jobs
Higher wages
Cheaper housing
Natural disaster
Persecution
Consequences of migration - ANS *Host country*
- increased diversity of goods and services e.g. China town
- direct effects on wages, taxes, government spending etc
*Home country*
- brain drain/gai...
ECON0041 Economics of Migration and
Job Search RATED A+
Causes of migration - ANS New jobs
Higher wages
Cheaper housing
Natural disaster
Persecution
Consequences of migration - ANS *Host country*
- increased diversity of goods and services e.g. China town
- direct effects on wages, taxes, government spending etc
*Home country*
- brain drain/gain
- return and remittances
Return migration - ANS Migrants return to the country of origin by their own choice after a significant
period abroad
Contract migration - ANS Migrant lives in host country for a limited number of years, where the length
of migration is exogenously determined by a residence permit or working contract
,Transient migration - ANS Migrant moves across different host countries before possibly reaching a final
destination
Circulatory migration - ANS Migrants move frequently between the host and source country, they only
stay for a short period in the host country e.g. harvest season
Influences on net gains from migration - ANS - Increases with skill prices in the host country
- Increases with return to human capital in host country
- Moving cost
- Relative skill prices and rate of increase of R
Why may individuals not migrate even if there is a net gain from migration - ANS Non economic reasons
e.g. family/amenities
Non pecuniary factors e.g. weather, quality of goods
Non financial costs of moving
Risk aversion on future earnings
Credit constraints so can't pay moving cost
Length of t in return migration:
, ξ0 > ξ1, c1 > c0 - ANS w1 > w0
Required to overcome home bias
(0 = home country)
Length of t in return migration:
ξ0 > ξ1, c1 = c0, w0 increases - ANS t falls
Individual has greater incentive to stay at home
Length of t in return migration:
ξ0 > ξ1, c1 = c0, w1 increases - ANS Ambiguous effect on t
Substitution effect - as w1 increases you want to spend more time abroad
Income effect - you could make more for a given unit of time, hence spend less time there and consume
the same amount
Roy Model:
σiu > 0, σeu > 0 - ANS Implies σi^2 > σie > σe^2
Positive selection
Highly skilled migrants leave home country
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