ECON0041 Economics of Migration and Job
Search EXAM QUESTIONS COMPREHENSIVE
questions answered, 2025 verified graded A+
already passed!
Save
Terms in this set (97)
New jobs
Higher wages
Causes of migration Cheaper housing
Natural disaster
Persecution
Host country
- increased diversity of goods and services e.g. China
town
- direct effects on wages, taxes, government
Consequences of
spending etc
migration
Home country
- brain drain/gain
- return and remittances
Migrants return to the country of origin by their own
Return migration
choice after a significant period abroad
, Migrant lives in host country for a limited number of
years, where the length of migration is exogenously
Contract migration
determined by a residence permit or working
contract
Migrant moves across different host countries before
Transient migration
possibly reaching a final destination
Migrants move frequently between the host and
Circulatory migration source country, they only stay for a short period in the
host country e.g. harvest season
- Increases with skill prices in the host country
- Increases with return to human capital in host
Influences on net gains country
from migration
- Moving cost
- Relative skill prices and rate of increase of R
Non economic reasons e.g. family/amenities
Non pecuniary factors e.g. weather, quality of goods
Why may individuals not
migrate even if there is a Non financial costs of moving
net gain from migration
Risk aversion on future earnings
Credit constraints so can't pay moving cost
w1 > w0
Length of t in return
migration: Required to overcome home bias
ξ0 > ξ1, c1 > c0
(0 = home country)
, Length of t in return t falls
migration:
ξ0 > ξ1, c1 = c0, w0 Individual has greater incentive to stay at home
increases
Ambiguous effect on t
Length of t in return Substitution effect - as w1 increases you want to
migration: spend more time abroad
ξ0 > ξ1, c1 = c0, w1
increases Income effect - you could make more for a given unit
of time, hence spend less time there and consume the
same amount
Implies σi^2 > σie > σe^2
Positive selection
Highly skilled migrants leave home country
Roy Model:
σiu > 0, σeu > 0 Those who migrate have higher than average earnings
in both host and home countries
The chances of having a high wage if you are above
average is greater in the immigration country as there
is a higher probability mass for a given wage
Search EXAM QUESTIONS COMPREHENSIVE
questions answered, 2025 verified graded A+
already passed!
Save
Terms in this set (97)
New jobs
Higher wages
Causes of migration Cheaper housing
Natural disaster
Persecution
Host country
- increased diversity of goods and services e.g. China
town
- direct effects on wages, taxes, government
Consequences of
spending etc
migration
Home country
- brain drain/gain
- return and remittances
Migrants return to the country of origin by their own
Return migration
choice after a significant period abroad
, Migrant lives in host country for a limited number of
years, where the length of migration is exogenously
Contract migration
determined by a residence permit or working
contract
Migrant moves across different host countries before
Transient migration
possibly reaching a final destination
Migrants move frequently between the host and
Circulatory migration source country, they only stay for a short period in the
host country e.g. harvest season
- Increases with skill prices in the host country
- Increases with return to human capital in host
Influences on net gains country
from migration
- Moving cost
- Relative skill prices and rate of increase of R
Non economic reasons e.g. family/amenities
Non pecuniary factors e.g. weather, quality of goods
Why may individuals not
migrate even if there is a Non financial costs of moving
net gain from migration
Risk aversion on future earnings
Credit constraints so can't pay moving cost
w1 > w0
Length of t in return
migration: Required to overcome home bias
ξ0 > ξ1, c1 > c0
(0 = home country)
, Length of t in return t falls
migration:
ξ0 > ξ1, c1 = c0, w0 Individual has greater incentive to stay at home
increases
Ambiguous effect on t
Length of t in return Substitution effect - as w1 increases you want to
migration: spend more time abroad
ξ0 > ξ1, c1 = c0, w1
increases Income effect - you could make more for a given unit
of time, hence spend less time there and consume the
same amount
Implies σi^2 > σie > σe^2
Positive selection
Highly skilled migrants leave home country
Roy Model:
σiu > 0, σeu > 0 Those who migrate have higher than average earnings
in both host and home countries
The chances of having a high wage if you are above
average is greater in the immigration country as there
is a higher probability mass for a given wage
