Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/196914 
Year of Publication: 
2019
Series/Report no.: 
University of Tübingen Working Papers in Economics and Finance No. 117
Publisher: 
University of Tübingen, Faculty of Economics and Social Sciences, Tübingen
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
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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