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

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  • 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.

Suggested Citation

  • Stark, Oded & Jakubek, Marcin, 2013. "Migration networks as a response to financial constraints: Onset, and endogenous dynamics," Journal of Development Economics, Elsevier, vol. 101(C), pages 1-7.
  • Handle: RePEc:eee:deveco:v:101:y:2013:i:c:p:1-7
    DOI: 10.1016/j.jdeveco.2012.07.002
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    References listed on IDEAS

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    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.
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    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. 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.
    3. 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.

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    More about this item

    Keywords

    Migration networks; 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

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