[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/zbw/tuewef/42.html
   My bibliography  Save this paper

Migration networks as a response to financial constraints: Onset and endogenous dynamics

Author

Listed:
  • Stark, Oded
  • Jakubek, Marcin
Abstract
A migration network is modeled as a mutually beneficial cooperative agreement between financially-constrained individuals who seek to finance and expedite their migration. The cooperation agreement creates a network: established migrants contract to support the subsequent migration of others in exchange for receiving support themselves. When the model is expanded to study cooperation between more than two migrants, it emerges that there is a finite optimal size of the migration network. Consequently, would-be migrants in the sending country will form a multitude of networks, rather than a single grand network. When the risk involved in participating in a cooperation agreement is incorporated, the propensity to enter an agreement is shown to depend positively on the cost of migration.

Suggested Citation

  • Stark, Oded & Jakubek, Marcin, 2012. "Migration networks as a response to financial constraints: Onset and endogenous dynamics," University of Tübingen Working Papers in Business and Economics 42, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    • Handle: RePEc:zbw:tuewef:42
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/60233/1/719967767.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. B. Davis & P. Winters, 2001. "Gender, Networks and Mexico-US Migration," Journal of Development Studies, Taylor & Francis Journals, vol. 38(2), pages 1-26.
    2. Besley, Timothy & Coate, Stephen & Loury, Glenn, 1993. "The Economics of Rotating Savings and Credit Associations," American Economic Review, American Economic Association, vol. 83(4), pages 792-810, September.
    3. Stark, Oded & Lucas, Robert E B, 1988. "Migration, Remittances, and the Family," Economic Development and Cultural Change, University of Chicago Press, vol. 36(3), pages 465-481, April.
    4. C. Simon Fan & Oded Stark, 2007. "A Social Proximity Explanation of the Reluctance to Assimilate," Kyklos, Wiley Blackwell, vol. 60(1), pages 55-63, February.
    5. Stark, Oded & Wang, You Qiang, 2002. "Migration dynamics," Economics Letters, Elsevier, vol. 76(2), pages 159-164, July.
    6. Jennifer Lauby & Oded Stark, 1988. "Individual Migration as a Family Strategy: Young Women in the Philippines," Population Studies, Taylor & Francis Journals, vol. 42(3), pages 157-173.
    7. Oded Stark, 2009. "Reasons for Remitting," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 10(3), pages 147-158, July.
    8. Orrenius, Pia M. & Zavodny, Madeline, 2005. "Self-selection among undocumented immigrants from Mexico," Journal of Development Economics, Elsevier, vol. 78(1), pages 215-240, October.
    9. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
    10. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-930, September.
    11. M. R. Rosenzweig & Stark, O. (ed.), 1997. "Handbook of Population and Family Economics," Handbook of Population and Family Economics, Elsevier, edition 1, volume 1, number 1.
    12. Lori A. Beaman, 2012. "Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(1), pages 128-161.
    13. Kovsted, Jens & Lyk-Jensen, Peter, 1999. "Rotating savings and credit associations: the choice between random and bidding allocation of funds," Journal of Development Economics, Elsevier, vol. 60(1), pages 143-172, October.
    14. Gordon H Hanson & Craig McIntosh, 2010. "The Great Mexican Emigration," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 798-810, November.
    15. Anderson, Siwan & Baland, Jean-Marie & Moene, Karl Ove, 2009. "Enforcement in informal saving groups," Journal of Development Economics, Elsevier, vol. 90(1), pages 14-23, September.
    16. Sarah Dolfin & Garance Genicot, 2010. "What Do Networks Do? The Role of Networks on Migration and “Coyote” Use," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 343-359, May.
    17. Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 549-599.
    18. Stark, Oded & Fan, C. Simon, 2006. "A Reluctance to Assimilate," Discussion Papers 7125, University of Bonn, Center for Development Research (ZEF).
    19. Oded Stark, 1991. "The Migration of Labor," Blackwell Books, Wiley Blackwell, number 1557860300, April.
    20. Stark,Oded, 1999. "Altruism and Beyond," Cambridge Books, Cambridge University Press, number 9780521663731, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Neubecker, Nina & Smolka, Marcel, 2013. "Co-national and cross-national pulls in international migration to Spain," International Review of Economics & Finance, Elsevier, vol. 28(C), pages 51-61.
    2. Kępińska, Ewa & Stark, Oded, 2013. "The evolution and sustainability of seasonal migration from Poland to Germany: From the dusk of the 19th century to the dawn of the 21st century," International Review of Economics & Finance, Elsevier, vol. 28(C), pages 3-18.
    3. Oded Stark & Marcin Jakubek, 2022. "Can the evolution of joint savings agreements counter the effect of higher costs of migration on its intensity?," Journal of Evolutionary Economics, Springer, vol. 32(3), pages 757-796, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stark, Oded, 2013. "On the Economics of Others," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue 5, pages 709-715.
    2. Parag Mahajan & Dean Yang, 2020. "Taken by Storm: Hurricanes, Migrant Networks, and US Immigration," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 250-277, April.
    3. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 17, pages 1135-1198, Elsevier.
    4. Marcel Fafchamps & Forhad Shilpi, 2013. "Determinants of the Choice of Migration Destination," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 388-409, June.
    5. Stark, Oded & Dorn, Agnieszka, 2013. "Do family ties with those left behind intensify or weaken migrants’ assimilation?," Economics Letters, Elsevier, vol. 118(1), pages 1-5.
    6. David McKenzie & Hillel Rapoport, 2010. "Self-Selection Patterns in Mexico-U.S. Migration: The Role of Migration Networks," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 811-821, November.
    7. Barsbai, Toman & Licuanan, Victoria & Steinmayr, Andreas & Tiongson, Erwin & Yang, Dean, 2024. "Information and immigrant settlement," Journal of Development Economics, Elsevier, vol. 170(C).
    8. Shankar Ghimire & Kul Kapri, 2023. "Household Income, Migration Networks, and Migration Decisions," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(6), pages 1484-1507, December.
    9. Jean-Louis Arcand & Linguère M'Baye, 2011. "Braving the waves: The economics of clandestine migration from Africa," CERDI Working papers halshs-00575606, HAL.
    10. I-Ling Shen & Frédéric Docquier & Hillel Rapoport, 2010. "Remittances and inequality: a dynamic migration model," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(2), pages 197-220, June.
    11. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    12. Claire Naiditch & Radu Vranceanu, 2009. "Migratory Equilibria with Invested Remittances," Post-Print halshs-00376472, HAL.
    13. Peter Huber & Klaus Nowotny & Julia Bock-Schappelwein, 2010. "Qualification Structure, Over- and Under-qualification of the Foreign Born in Austria and the EU," WIFO Studies, WIFO, number 41226, August.
    14. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Endogeneity and sample selection in a model for remittances," Journal of Development Economics, Elsevier, vol. 99(2), pages 370-384.
    15. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
    16. Verônica De Castro Lameira & Eduardo Gonçalves & Ricardo Da Silva Freguglia, 2016. "Migratory Effectiveness In The Labor Market: Evidence From Brazil," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 228, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    17. Deb, Partha & Seck, Papa, 2009. "Internal Migration, Selection Bias and Human Development: Evidence from Indonesia and Mexico," MPRA Paper 19214, University Library of Munich, Germany.
    18. Hanson, Gordon H., 2010. "International Migration and the Developing World," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4363-4414, Elsevier.
    19. Görlich, Dennis & Trebesch, Christoph, 2006. "Mass migration and seasonality: evidence on Moldova's labour exodus," Kiel Advanced Studies Working Papers 435, Kiel Institute for the World Economy (IfW Kiel).
    20. Jason Davis & Noli Brazil, 2016. "Migration, Remittances and Nutrition Outcomes of Left-Behind Children: A National-Level Quantitative Assessment of Guatemala," PLOS ONE, Public Library of Science, vol. 11(3), pages 1-17, March.

    More about this item

    Keywords

    Migration network; Schedule of migration; Sequential migration; Affinity; Interpersonal bonds; Cost of migration;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:tuewef:42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/wftuede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.