A Bridge Goes Both Ways: A Two-Way Migration Model with Social Capital and Incomplete Information
Date Issued
2009
Date
2009
Author(s)
Jinkins, David Carson
Abstract
The literature on social capital and migration has not given adequate attention to two-way migration. This paper shows that by using the concepts of incomplete information and risk aversion to model social capital, we can get both two-way and return migration. The basic idea behind the model is that as networks grow, risk-averse individuals have better information about foreign wages. Better information mitigates risk, which makes individuals more likely to migrate. Risk is modeled by adjusting the distribution and confidence individuals have in their guesses about foreign wages. In a numerical analysis the model exhibits both two-way and return migration in every period.
Subjects
migration
social network
risk aversion
social capital
return migration
two-way migration
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
ntu-98-R96323048-1.pdf
Size
23.53 KB
Format
Adobe PDF
Checksum
(MD5):0f960f844de43dfc6a92c62b523e40d6