Repercussions of negatively selective migration for the behavior of non-migrants when preferences are social. (12th April 2019)

• Record Type: Journal Article
• Authors: Stark, Oded; Budzinski, Wiktor
• Is Part Of: Journal of demographic economics. Volume 85:Number 2(2019)
• Page Start: 165
• Page End: 179
• Publication Date: 2019-04-12
• Subjects: Social preferences, -- Distaste for low relative income, -- Work effort, -- Per capita output, -- Migration; D01, -- D31, -- J24, -- O15; Demography -- Economic aspects -- Periodicals; Population -- Economic aspects -- Periodicals; 304.605
• DOI: 10.1017/dem.2018.18
• Languages: English
• ISSNs: 2054-0892

Abstract

Abstract: We study how the work effort and output of non-migrants in a village economy are affected when a member of the village population migrates. Given that individuals dislike low relative income, and that migration modifies the social space of the non-migrants, we show why and how the non-migrants adjust their work effort and output in response to the migration-generated change in their social space. When migration is negatively selective such that the least productive individual departs, the output of the non-migrants increases. While as a consequence of this migration statically calculated average productivity rises, we identify a dynamic repercussion that compounds the static one.