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Migratory Policy In Developing Countries: How To Bring Best People Back?

Author

Listed:
  • Damien Besancenot

    (CEPN - Centre d'Economie de l'Université Paris Nord (ancienne affiliation) - UP13 - Université Paris 13 - CNRS - Centre National de la Recherche Scientifique)

  • Radu Vranceanu

    (ESSEC Business School)

Abstract

This paper analyzes the decision of a migrant to return or stay within the framework of a signaling model withexogenous migratory costs. If employers have only imperfect information about the type of a worker and goodworkers migrate, bad workers might copy their strategy in order to get the same high wage as the good workers.Employers will therefore reduce the wage they pay to migrants and good workers incur a loss compared to theperfect information setup. In one hybrid equilibrium of the game, the more bad workers migrate, the higher theincentive for good workers to come back. Policy implications follow.

Suggested Citation

  • Damien Besancenot & Radu Vranceanu, 2008. "Migratory Policy In Developing Countries: How To Bring Best People Back?," CEPN Working Papers halshs-00344929, HAL.
    • Handle: RePEc:hal:cepnwp:halshs-00344929
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00344929
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    References listed on IDEAS

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    More about this item

    Keywords

    Temporary migration; Return migrants; Hybrid Bayesian Equilibrium; Signaling model.; Signaling model;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • 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

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