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Risk Aversion and the Willingness to Migrate in 30 Countries

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  • Peter Huber
  • Klaus Nowotny

Abstract

We use individual level data covering 30 mostly post-communist and developing countries which account for over a fifth of the worldwide immigrant stock to assess the impact of risk aversion on the willingness to migrate. Consistent with theories of individual level migration decisions, risk aversion has a statistically significant negative impact on both the willingness to migrate within countries as well as abroad. This applies to virtually all countries considered and is robust across various specifications, to alternative measures of risk aversion and to different measures of the willingness to migrate. Differences in the impact of risk aversion on the willingness to migrate are also positively correlated to measures of sending country risks and the missing variable bias of omitting risk aversion from migration regressions is substantial.

Suggested Citation

  • Peter Huber & Klaus Nowotny, 2018. "Risk Aversion and the Willingness to Migrate in 30 Countries," WIFO Working Papers 569, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2018:i:569
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    References listed on IDEAS

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    1. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 522-550, June.
    2. Christian Dustmann & Francesco Fasani & Xin Meng & Luigi Minale, 2023. "Risk Attitudes and Household Migration Decisions," Journal of Human Resources, University of Wisconsin Press, vol. 58(1), pages 112-145.
    3. Akgüç, Mehtap & Liu, Xingfei & Tani, Massimiliano & Zimmermann, Klaus F., 2016. "Risk attitudes and migration," China Economic Review, Elsevier, vol. 37(C), pages 166-176.
    4. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    5. Holger Bonin & Amelie Constant & Konstantinos Tatsiramos & Klaus Zimmermann, 2009. "Native-migrant differences in risk attitudes," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1581-1586.
    6. Yuri Andrienko & Sergei Guriev, 2004. "Determinants of interregional mobility in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(1), pages 1-27, March.
    7. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    8. Frédéric Docquier & Giovanni Peri & Ilse Ruyssen, 2016. "The Cross-country Determinants of Potential and Actual Migration," World Scientific Book Chapters, in: The Economics of International Migration, chapter 12, pages 361-423, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Yvonne Giesing & Reem Hassan, 2021. "Between Hope and Despair: Egypt's Revolution and Migration Intentions," CESifo Working Paper Series 9237, CESifo.
    2. Anna Katharina Raggl, 2019. "Migration intentions in CESEE: sociodemographic profiles of prospective emigrants and their motives for moving," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1/19, pages 49-67.
    3. González Chapela, Jorge, 2020. "Patience goes a long way: Evidence from Spain," MPRA Paper 98711, University Library of Munich, Germany.
    4. Shamsuddin, Mrittika & Katsaiti, Marina Selini & El Anshasy, Amany A., 2022. "Income rank and income concerns: What correlates with international migration intentions?," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 490-505.
    5. Klöble, Katrin, 2021. "A behavioural perspective on the drivers of migration: Studying economic and social preferences using the Gallup World Poll," IDOS Discussion Papers 4/2021, German Institute of Development and Sustainability (IDOS).
    6. Elena Samarsky, 2020. "Who is Thinking of Leaving Germany? The Role of Postmaterialism, Risk Attitudes, and Life-Satisfaction on Emigration Intentions of German Nationals," SOEPpapers on Multidisciplinary Panel Data Research 1066, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Jorge González Chapela, 2022. "Is there a patience premium on migration?," Empirical Economics, Springer, vol. 63(4), pages 2025-2055, October.

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    Keywords

    Former Communist Countries; Migration intentions; Risk Aversion;
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