A theory of migration as a response to occupational stigma
International Economic Review
A theory is developed of labor migration that is prompted by a desire to avoid "social humiliation." In a general-equilibrium framework, it is shown that as long as migration can reduce humiliation sufficiently, migration will occur even between two identical economies. Migration increases the number of individuals who choose to perform degrading jobs and consequently, migration lowers the price of the good produced in the sector that is associated with low social status. Moreover, the greater an individual's aversion to performing degrading jobs, the more likely it is that he will experience a welfare gain when the economy opens up.
Copyright © (2011) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association
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Fan, C. S., & Stark, O. (2011). A theory of migration as a response to occupational stigma. International Economic Review, 52(2), 549-571. doi: 10.1111/j.1468-2354.2011.00638.x