Abstract
While traditional migration theory suggests that the rate of migration is negatively related to income at the origin, many empirical studies of aggregate migration yield a non-significant or even a positive relation. This paper utilizes a simplified model of migration to demonstrate that one possible reason for such results is the imperfect capital market facing migrants. Higher average income at the origin may imply a higher number of individuals who have the cash resources to finance migration, thus generating a positive relation between regional income and migration. The conclusions suggest the use of non-linear specifications in empirical migration studies.
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Feder, G. On the relation between origin income and migration. Ann Reg Sci 16, 46–61 (1982). https://doi.org/10.1007/BF01284246
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DOI: https://doi.org/10.1007/BF01284246