Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245768 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14717
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We test different classic migration theories by using incentivized laboratory experiments to investigate how potential migrants decide between working in different destinations. We test theories of income maximization, skill-selection, and multi-destination choice as we vary migration costs, liquidity constraints, risk, social benefits, and incomplete information. The standard income maximization model leads to a much higher migration rate and more negative skill-selection than occurs when migration decisions take place under more realistic assumptions. The independence of irrelevant alternatives assumption mostly holds when decisions just involve wages, costs, and liquidity constraints, but breaks down once we add risk and incomplete information.
Subjects: 
migrant selection
destination choice
lab experiment
IIA
JEL: 
F22
O15
C91
Document Type: 
Working Paper

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