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A theory of Migration as a Response to Relative Deprivation

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  • Oded Stark
  • You-qiang Wang

Abstract

We model migration as a response to relative deprivation. We present a specific configuration of incomes in which the process of migration in response to relative deprivation reaches a steady state. However, for the general configuration of incomes we show that it is impossible to prove the existence of a steady state. We study the social welfare implications of the two cases and show that if individuals are left to pursue their betterment, the resulting state falls short of the best social outcome. We present several implications of the model including federalism and the demand for secession.
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Suggested Citation

  • Oded Stark & You-qiang Wang, 2000. "A theory of Migration as a Response to Relative Deprivation," Departmental Working Papers _116, Chinese University of Hong Kong, Department of Economics.
    • Handle: RePEc:chk:cuhked:_116
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    References listed on IDEAS

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    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. Oded Stark, 1990. "A Relative Deprivation Approach to Performance Incentives in Career Games and Other Contests," Kyklos, Wiley Blackwell, vol. 43(2), pages 211-227, May.
    3. Stark, Oded & Yitzhaki, Shlomo, 1988. "Labour Migration as a Response to Relative Deprivation," MPRA Paper 21670, University Library of Munich, Germany.
    4. Stark, Oded & Taylor, J Edward, 1991. "Migration Incentives, Migration Types: The Role of Relative Deprivation," Economic Journal, Royal Economic Society, vol. 101(408), pages 1163-1178, September.
    5. Rosen, Sherwin, 1986. "Prizes and Incentives in Elimination Tournaments," American Economic Review, American Economic Association, vol. 76(4), pages 701-715, September.
    6. Weiss, Yoram & Fershtman, Chaim, 1998. "Social status and economic performance:: A survey," European Economic Review, Elsevier, vol. 42(3-5), pages 801-820, May.
    7. Postlewaite, Andrew, 1998. "The social basis of interdependent preferences," European Economic Review, Elsevier, vol. 42(3-5), pages 779-800, May.
    8. Oded Stark & J. Taylor, 1989. "Relative deprivation and international migration oded stark," Demography, Springer;Population Association of America (PAA), vol. 26(1), pages 1-14, February.
    9. Msuya, John, 1999. "Nutrition Improvement Projects in Tanzania: Appropriate Choice of Institutions Matters," Discussion Papers 280058, University of Bonn, Center for Development Research (ZEF).
    10. Schultze, Uta, 2000. "Insights from Physics into Development Processes: Are Fat Tails Interesting for Development Research?," Discussion Papers 280882, University of Bonn, Center for Development Research (ZEF).
    11. Stark, Oded, 1984. "Rural-to-Urban Migration in LDCs: A Relative Deprivation Approach," Economic Development and Cultural Change, University of Chicago Press, vol. 32(3), pages 475-486, April.
    12. repec:bla:kyklos:v:43:y:1990:i:2:p:211-27 is not listed on IDEAS
    13. Stark,Oded, 1999. "Altruism and Beyond," Cambridge Books, Cambridge University Press, number 9780521663731, September.
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    Citations

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    Cited by:

    1. Stark, Oded, 2006. "Inequality and migration: A behavioral link," Economics Letters, Elsevier, vol. 91(1), pages 146-152, April.
    2. Stark, Oded, 2003. "Tales of Migration without Wage Differentials: Individual, Family, and Community Contexts," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue 2, pages 79-92.
    3. Calderón Villarreal Cuauhtémoc & Huesca Reynoso Luis, 2014. "Profile of earners and remittances in Mexico: a relative deprivation approach," Contaduría y Administración, Accounting and Management, vol. 59(3), pages 11-33, julio-sep.
    4. Sakketa, T.G., 2018. "Relative Deprivation in Income, Assets, and Social Capital: Motivational and Deterrent Impacts on the Well-Being of Rural Youth," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277116, International Association of Agricultural Economists.
    5. Stefan Jestl & Mathias Moser & Anna Katharina Raggl, 2021. "Cannot keep up with the Joneses: how relative deprivation pushes internal migration in Austria," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 49(2), pages 210-231, November.
    6. Nicola Daniele Coniglio & Vitorocco Peragine & Davide Vurchio, 2023. "International migration and income inequality," WIDER Working Paper Series wp-2023-41, World Institute for Development Economic Research (UNU-WIDER).
    7. Irena Kogan & Jing Shen & Manuel Siegert, 2018. "What Makes a Satisfied Immigrant? Host-Country Characteristics and Immigrants’ Life Satisfaction in Eighteen European Countries," Journal of Happiness Studies, Springer, vol. 19(6), pages 1783-1809, August.
    8. Mohammad Reza Farzanegan & Hassan F. Gholipour & Mostafa Javadian, 2023. "Air pollution and internal migration: evidence from an Iranian household survey," Empirical Economics, Springer, vol. 64(1), pages 223-247, January.
    9. Chenoa Flippen, 2014. "U.S. internal Migration and Occupational Attainment: Assessing Absolute and Relative Outcomes by Region and Race," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 33(1), pages 31-61, February.
    10. Otrachshenko, Vladimir & Popova, Olga, 2014. "Life (dis)satisfaction and the intention to migrate: Evidence from Central and Eastern Europe," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 48(C), pages 40-49.
    11. repec:lic:licosd:40518 is not listed on IDEAS
    12. Annalisa Frigo & Elisabetta Lodigiani & Sara Salomone, 2021. "For Children's Sake: Intergenerational Altruism and Parental Migration Intentions," LIDAM Discussion Papers IRES 2021030, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    13. Sakketa Tekalign Gutu & Gerber Nicolas, 2018. "Working Paper 296 - Relative Deprivation and Well-Being of the Rural Youth," Working Paper Series 2423, African Development Bank.
    14. Ruxanda Berlinschi & Jan Fidrmuc, 2018. "Comfort and Conformity: A Culture-based Theory of Migration," CESifo Working Paper Series 7294, CESifo.
    15. Kaczmarczyk, Pawel & Tyrowicz, Joanna, 2015. "Winners and Losers among Skilled Migrants: The Case of Post-Accession Polish Migrants to the UK," IZA Discussion Papers 9057, Institute of Labor Economics (IZA).
    16. Hyll, Walter & Schneider, Lutz, 2014. "Relative deprivation and migration preferences," Economics Letters, Elsevier, vol. 122(2), pages 334-337.

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