IDEAS home Printed from https://ideas.repec.org/a/spr/lsprsc/v12y2019i3d10.1007_s12076-019-00240-2.html
   My bibliography  Save this article

What are migrants willing to pay for better home country institutions?

Author

Listed:
  • Ngoc Thi Minh Tran

    (University of Waikato
    Vietnam National University Ho Chi Minh City)

  • Michael P. Cameron

    (University of Waikato
    University of Waikato)

  • Jacques Poot

    (University of Waikato
    Vrije Universiteit Amsterdam)

Abstract

We conduct a contingent valuation investigation of the preference of international migrants for better home country institutional quality. Our study uses contingent valuation questions in a survey of 1.6% of Vietnamese adult migrants living in New Zealand (NZ) in 2016 to establish the compensating differentials that make those migrants indifferent between residing in NZ and returning to Viet Nam (VN) in hypothetical scenarios. We find that the estimated willingness to pay for an incremental unit improvement in institutional quality in VN is, on average, about NZD 80 per week (approximately 33% of the average weekly wage in VN in PPP terms for the same period), and positively associated with the respondents’ age and the perceived importance of institutional quality in VN to their repatriation intentions. This study underscores the importance of institutional quality to migration decisions by showing that migrants are willing to trade-off part of their regular income for better home country institutional quality.

Suggested Citation

  • Ngoc Thi Minh Tran & Michael P. Cameron & Jacques Poot, 2019. "What are migrants willing to pay for better home country institutions?," Letters in Spatial and Resource Sciences, Springer, vol. 12(3), pages 257-268, December.
    • Handle: RePEc:spr:lsprsc:v:12:y:2019:i:3:d:10.1007_s12076-019-00240-2
    DOI: 10.1007/s12076-019-00240-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12076-019-00240-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12076-019-00240-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Thierry Baudassé & Rémi Bazillier & Ismaël Issifou, 2018. "Migration And Institutions: Exit And Voice (From Abroad)?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 727-766, July.
    2. Ngoc Thi Minh Tran & Michael P. Cameron & Jacques Poot, 2017. "Local Institutional Quality and Return Migration: Evidence from Vietnam," Working Papers in Economics 17/10, University of Waikato.
    3. Catherine L. Kling & Daniel J. Phaneuf & Jinhua Zhao, 2012. "From Exxon to BP: Has Some Number Become Better Than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 3-26, Fall.
    4. Michael Woolcock, 2013. "Using Case Studies to Explore the External Validity of ‘Complex’ Development Interventions," CID Working Papers 270, Center for International Development at Harvard University.
    5. Woolcock, Michael, 2013. "Using Case Studies to Explore the External Validity of 'Complex' Development Interventions," Working Paper Series rwp13-048, Harvard University, John F. Kennedy School of Government.
    6. Ngoc Thi Minh Tran & Michael P. Cameron & Jacques Poot, 2018. "Return or Not Return? The Role of Home-Country Institutional Quality in Vietnamese Migrants’ Return Intentions," Working Papers in Economics 18/04, University of Waikato.
    7. Chiswick, Barry R., 1999. "Are Immigrants Favorably Self-Selected? An Economic Analysis," Working Papers 147, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    8. Hatton, Timothy J. & Williamson, Jeffrey G., 2011. "Are Third World Emigration Forces Abating?," World Development, Elsevier, vol. 39(1), pages 20-32, January.
    9. Bal, Frans & Nijkamp, Peter, 2001. "In search of valid results in a complex economic environment: The potential of meta-analysis and value transfer," European Journal of Operational Research, Elsevier, vol. 128(2), pages 364-384, January.
    10. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    11. Barry Chiswick, 1999. "Are Immigrants Favorably Self-Selected?," American Economic Review, American Economic Association, vol. 89(2), pages 181-185, May.
    12. Bilgili, Ö. & Siegel, M., 2014. "To return permanently or to return temporarily?: Explaining migrants' intentions," MERIT Working Papers 2014-041, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Richard T. Carson, 2012. "Contingent Valuation: A Practical Alternative When Prices Aren't Available," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 27-42, Fall.
    14. Lant Pritchett, Justin Sandefur, 2013. "Context Matters for Size: Why External Validity Claims and Development Practice Don't Mix-Working Paper 336," Working Papers 336, Center for Global Development.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ngoc Thi Minh Tran & Michael P. Cameron & Jacques Poot, 2021. "Perception of Institutional Quality Difference and Return Migration Intention: The Case of the Vietnamese Diaspora," RF Berlin - CReAM Discussion Paper Series 2114, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ngoc Thi Minh Tran & Michael P. Cameron & Jacques Poot, 2018. "What are Migrants Willing to Pay for Better Home Country Institutions?: The Case of Viet Nam," Working Papers in Economics 18/10, University of Waikato.
    2. Mariapia Mendola, 2018. "Global evidence on prospective migrants from developing countries," Working Papers 387, University of Milano-Bicocca, Department of Economics, revised 19 Sep 2018.
    3. Bertoli, Simone & Dequiedt, Vianney & Zenou, Yves, 2016. "Can selective immigration policies reduce migrants' quality?," Journal of Development Economics, Elsevier, vol. 119(C), pages 100-109.
    4. Simone Bertoli & Hillel Rapoport, 2015. "Heaven's Swing Door: Endogenous Skills, Migration Networks, and the Effectiveness of Quality-Selective Immigration Policies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 565-591, April.
    5. Assunção, Juliano Junqueira & Carvalho, Leandro, 2013. "Financial Constraints, Endogenous Educational Choices and Self-Selection of Migrants," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 33(2), November.
    6. Felbermayr, Gabriel & Grossmann, Volker & Kohler, Wilhelm, 2012. "Migration, International Trade and Capital Formation: Cause or Effect?," IZA Discussion Papers 6975, Institute of Labor Economics (IZA).
    7. Peter Egger & Doina Radulescu & Nora Strecker, 2013. "Effective labor taxation and the international location of headquarters," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(4), pages 631-652, August.
    8. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2012. "Europe's Tired, Poor, Huddled Masses: Self-Selection and Economic Outcomes in the Age of Mass Migration," American Economic Review, American Economic Association, vol. 102(5), pages 1832-1856, August.
    9. Zhiling Wang & Thomas de Graaff & Peter Nijkamp, 2018. "Barriers of Culture, Networks, and Language in International Migration: A Review," REGION, European Regional Science Association, vol. 5, pages 73-89.
    10. Peter Egger & Doina Maria Radulescu, 2009. "The Influence of Labour Taxes on the Migration of Skilled Workers," The World Economy, Wiley Blackwell, vol. 32(9), pages 1365-1379, September.
    11. Gröger, André, 2021. "Easy come, easy go? Economic shocks, labor migration and the family left behind," Journal of International Economics, Elsevier, vol. 128(C).
    12. Eric A. Hanushek & Jens Ruhose & Ludger Woessmann, 2015. "Human Capital Quality and Aggregate Income Differences: Development Accounting for U.S. States," CESifo Working Paper Series 5411, CESifo.
    13. Eric A. Hanushek & Jens Ruhose & Ludger Woessmann, 2017. "Knowledge Capital and Aggregate Income Differences: Development Accounting for US States," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 184-224, October.
    14. Ngoc Thi Minh Tran & Michael P. Cameron & Jacques Poot, 2021. "Perception of Institutional Quality Difference and Return Migration Intention: The Case of the Vietnamese Diaspora," RF Berlin - CReAM Discussion Paper Series 2114, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    15. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    16. Krieger, Tim & Renner, Laura & Ruhose, Jens, 2018. "Long-term relatedness between countries and international migrant selection," Journal of International Economics, Elsevier, vol. 113(C), pages 35-54.
    17. Florent Bédécarrats & Isabelle Guérin & François Roubaud, 2019. "All that Glitters is not Gold. The Political Economy of Randomized Evaluations in Development," Development and Change, International Institute of Social Studies, vol. 50(3), pages 735-762, May.
    18. Michael S. Rendall & Susan W. Parker, 2014. "Two Decades of Negative Educational Selectivity of Mexican Migrants to the United States," Population and Development Review, The Population Council, Inc., vol. 40(3), pages 421-446, September.
    19. Andrews, Matt & Pritchett, Lant & Woolcock, Michael, 2017. "Building State Capability: Evidence, Analysis, Action," OUP Catalogue, Oxford University Press, number 9780198747482.
    20. Ngoc Thi Minh Tran & Michael P. Cameron & Jacques Poot, 2018. "Return or Not Return? The Role of Home-Country Institutional Quality in Vietnamese Migrants’ Return Intentions," Working Papers in Economics 18/04, University of Waikato.

    More about this item

    Keywords

    Return migration; Institutional quality; Contingent valuation method; Willingness to pay; Viet Nam;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lsprsc:v:12:y:2019:i:3:d:10.1007_s12076-019-00240-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.