Rationality of Migration

The paradigm of a rational individual acting on the earnings-enhancing benefits of migration is subjected to statistical scrutiny, using data from Turkey. Results with robust selectivity correction support the rationality hypothesis: Both migrants and nonmigrants chose the option in which they had c...

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Published in:International economic review (Philadelphia) 2000-11, Vol.41 (4), p.893-920
Main Author: Tunali, Insan
Format: Article
Language:English
Subjects:
Agriculture
Animal migration behavior
Descriptive statistics
Earnings
Econometrics
Economic models
Economic theory
Estimation methods
Human capital
Hypotheses
Labor markets
Mathematical methods
Migration
Parametric models
Pay-off
Probability
Rational expectations
Rationality
Rural schools
Self employment
Studies
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description The paradigm of a rational individual acting on the earnings-enhancing benefits of migration is subjected to statistical scrutiny, using data from Turkey. Results with robust selectivity correction support the rationality hypothesis: Both migrants and nonmigrants chose the option in which they had comparative advantage. However, the estimated gain from moving is negative for a substantial portion of migrants, whereas a minority realize very high returns. This suggests that migration is a lottery: Individuals are willing to invest in a proposition that has a high probability of yielding negative returns because of the potential for a very large payoff.
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source EconLit s plnými texty; International Bibliography of the Social Sciences (IBSS); Business Source Ultimate; Wiley; JSTOR Archival Journals and Primary Sources Collection【Remote access available】
subjects Agriculture
Animal migration behavior
Descriptive statistics
Earnings
Econometrics
Economic models
Economic theory
Estimation methods
Human capital
Hypotheses
Labor markets
Mathematical methods
Migration
Parametric models
Pay-off
Probability
Rational expectations
Rationality
Rural schools
Self employment
Studies
title Rationality of Migration
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