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Coordination Failures in Network Migration

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  • Heitmueller, Axel

    (Imperial College London)

Abstract

Previous migration facilitates future population moves, a phenomenon called network migration. However, thus far, network migration has been closely linked to network externalities. In contrast, this paper argues that the incumbent migration population can actively impact on future migration flows, yet fails to achieve a Pareto optimal network size due to coordination failures. In short, it stresses the active role incumbents take in the provision of network effects and, second, it provides theoretical evidence that self-perpetuating and sustained immigration is not at odds with rational acting individuals and must not simply be ascribed to pure network externalities.

Suggested Citation

  • Heitmueller, Axel, 2003. "Coordination Failures in Network Migration," IZA Discussion Papers 770, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp770
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    References listed on IDEAS

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    1. Bauer, Thomas K. & Epstein, Gil S. & Gang, Ira N., 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S," IZA Discussion Papers 551, Institute of Labor Economics (IZA).
    2. Todaro, Michael P, 1969. "A Model for Labor Migration and Urban Unemployment in Less Developed Countries," American Economic Review, American Economic Association, vol. 59(1), pages 138-148, March.
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    4. Dustmann Christian & Preston Ian P, 2007. "Racial and Economic Factors in Attitudes to Immigration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-41, November.
    5. Francisco Rivera-Batiz & Myeong-Su Yun & Ira Gang, 2002. "Economic Strain, Ethnic Concentration and Attitudes Towards Foreigners in the European Union," Departmental Working Papers 200214, Rutgers University, Department of Economics.
    6. Epstein, Gil S, 2002. "Informational Cascades and Decision to Migrate," CEPR Discussion Papers 3287, C.E.P.R. Discussion Papers.
    7. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    8. Francisco L. Rivera-Batiz, 2018. "The Labor Market Effects of Immigration in the United States and Europe: Substitution vs. Complementarity," World Scientific Book Chapters, in: Francisco L Rivera-Batiz (ed.), International and Interregional Migration Theory and Evidence, chapter 4, pages 47-74, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. M. Moretto & Sergio Vergalli, 2008. "Migration dynamics," Journal of Economics, Springer, vol. 93(3), pages 223-265, April.
    2. Klaus Nowotny, 2009. "Regionale Konzentration von Migranten in der EU 15," WIFO Monatsberichte (monthly reports), WIFO, vol. 82(6), pages 445-457, June.
    3. Klaus Nowotny, 2011. "Welfare Magnets, Taxation and the Location Decisions of Migrants to the EU," WIFO Working Papers 393, WIFO.
    4. Sergio Vergalli, 2011. "Entry and Exit Strategies in Migration Dynamics," Journal of Labor Research, Springer, vol. 32(4), pages 362-389, December.
    5. S.M. Turab Hussain, 2005. "Rural to Urban Migration and Network Effects in an Extended Family Framework," Microeconomics Working Papers 22257, East Asian Bureau of Economic Research.
    6. Sergio Vergalli, 2008. "The Role of Community in Migration Dynamics," LABOUR, CEIS, vol. 22(3), pages 547-567, September.
    7. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2004. "Selection or Network Effects? Migration Flows into 27 OECD Countries, 1990-2000," IZA Discussion Papers 1104, Institute of Labor Economics (IZA).
    8. Natálie Reichlová, 2005. "Can the Theory of Motivation Explain Migration Decisions?," Working Papers IES 97, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised 2005.
    9. Hubert Jayet & Glenn Rayp & Ilse Ruyssen & Nadiya Ukrayinchuk, 2016. "Immigrants’ location choice in Belgium," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 57(1), pages 63-89, July.
    10. repec:wsr:ecbook:2010:i:ii-008 is not listed on IDEAS
    11. Klaus Nowotny & Dieter Pennerstorfer, 2011. "Ethnic Networks and the Location Choice of Migrants in Europe," WIFO Working Papers 415, WIFO.
    12. Robert J. R. Elliott & Joanne K. Lindley, 2008. "Immigrant wage differentials, ethnicity and occupational segregation," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(3), pages 645-671, June.
    13. Sergio Vergalli, 2006. "Dynamics in Immigration Community," Working Papers ubs0613, University of Brescia, Department of Economics.
    14. Peter Huber & Klaus Nowotny & Julia Bock-Schappelwein, 2010. "Qualification Structure, Over- and Under-qualification of the Foreign Born in Austria and the EU," WIFO Studies, WIFO, number 41226, August.
    15. Klaus Nowotny, 2015. "Institutions and the Location Decisions of Highly Skilled Migrants to Europe. WWWforEurope Working Paper No. 78," WIFO Studies, WIFO, number 57885, August.
    16. Robert Elliott & Joanne Kathryn Lindley, 2006. "Immigrant Wage Differentials, Ethnicity and Occupational Clustering," Working Papers 2006008, The University of Sheffield, Department of Economics, revised May 2006.

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    More about this item

    Keywords

    optimal network size; Pareto optimality; household migration networks; network externalities;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General

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