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Return and Dynamics: The Path of Labor Migration when Workers Differ in their Skills and Information Is Asymmetric

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  • Stark, Oded

Abstract

An implementation of the theory of labor migration under asymmetric information shows that return migration arises from the reinstatement of informational symmetry which induces low-skill workers, who are no longer pooled with high-skill workers, to return. When workers in an occupation constitute more than two skill levels, say four (without loss of generality), the following patterns emerge: Migration is sequential, that is, it proceeds in waves. Each wave breaks into workers who return and workers who stay; within waves the returning migrants are the low-skill workers. The average skill level of migrants is rising in the order of their wave.

Suggested Citation

  • Stark, Oded, 1995. "Return and Dynamics: The Path of Labor Migration when Workers Differ in their Skills and Information Is Asymmetric," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 97(1), pages 55-71.
    • Handle: RePEc:zbw:espost:236837
    DOI: 10.2307/3440829
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