Premium
The Role of Community in Migration Dynamics
Author(s) -
Vergalli Sergio
Publication year - 2008
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.2008.00412.x
Subject(s) - wage , economics , observable , hysteresis , immigration , dynamics (music) , function (biology) , dimension (graph theory) , differential (mechanical device) , econometrics , labour economics , mathematics , physics , geography , archaeology , quantum mechanics , evolutionary biology , acoustics , pure mathematics , biology , thermodynamics
. In this paper, I have presented a theoretical model that investigates the observable hysteresis process in migration dynamics. In the model the migration choice depends not only on wage differential, but also on a U‐shaped benefit function of a community of homogenous ethnic individuals, according to the ‘theory of clubs’. The results, based on real option theory, explain that observable ‘jumps’ in migration flows could depend not only on exogenous shocks, but also on two endogenous variables: the number of coordinated immigrants and the dimension of the community. Indeed, migration choice is delayed until a critical mass of immigrants is reached and possible rigidities of optimal district size could magnify this hysteresis process.