Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/196781 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12283
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study how the work effort and output of non-migrants in a village economy are affected when a member of the village population migrates. Given that individuals dislike low relative income, and that migration modifies the social space of the non-migrants, we show why and how the non-migrants adjust their work effort and output in response to the migration-generated change in their social space. When migration is negatively selective such that the least productive individual departs, the output of the non-migrants increases. While as a consequence of this migration statically calculated average productivity rises, we identify a dynamic repercussion that compounds the static one.
Subjects: 
social preferences
distaste for low relative income
work effort
per capita output
migration
JEL: 
D01
D31
J24
O15
Document Type: 
Working Paper

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