How Borrowing Constraints Hinder Migration: Theoretical Insights from a Random Utility Maximization Model

Marchal L, Naiditch C (2020)
SCANDINAVIAN JOURNAL OF ECONOMICS 122(2): 732-761.

Zeitschriftenaufsatz | E-Veröff. vor dem Druck | Englisch
 
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Autor*in
Marchal, LéaUniBi; Naiditch, Claire
Abstract / Bemerkung
We provide a theoretical framework to analyze how financial constraints hinder migration. Introducing wealth heterogeneity and borrowing constraints into a random utility maximization model of migration, we find evidence of multilateral resistance to migration stemming from borrowing constraints. We calibrate the model on 22 European countries, and we show that omitting the constraints biases upward the estimation of bilateral migration rates. We then simulate an increase in the bilateral cost of migration to the United Kingdom. We find that omitting the constraints biases downward the change entailed by the cost increase in the bilateral rates of migration to all destinations.
Stichworte
Discrete choice model; financial constraint; multilateral resistance to; migration
Erscheinungsjahr
2020
Zeitschriftentitel
SCANDINAVIAN JOURNAL OF ECONOMICS
Band
122
Ausgabe
2
Seite(n)
732-761
ISSN
0347-0520
eISSN
1467-9442
Page URI
https://pub.uni-bielefeld.de/record/2942719

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Marchal L, Naiditch C. How Borrowing Constraints Hinder Migration: Theoretical Insights from a Random Utility Maximization Model. SCANDINAVIAN JOURNAL OF ECONOMICS. 2020;122(2):732-761.
Marchal, L., & Naiditch, C. (2020). How Borrowing Constraints Hinder Migration: Theoretical Insights from a Random Utility Maximization Model. SCANDINAVIAN JOURNAL OF ECONOMICS, 122(2), 732-761. doi:10.1111/sjoe.12355
Marchal, L., and Naiditch, C. (2020). How Borrowing Constraints Hinder Migration: Theoretical Insights from a Random Utility Maximization Model. SCANDINAVIAN JOURNAL OF ECONOMICS 122, 732-761.
Marchal, L., & Naiditch, C., 2020. How Borrowing Constraints Hinder Migration: Theoretical Insights from a Random Utility Maximization Model. SCANDINAVIAN JOURNAL OF ECONOMICS, 122(2), p 732-761.
L. Marchal and C. Naiditch, “How Borrowing Constraints Hinder Migration: Theoretical Insights from a Random Utility Maximization Model”, SCANDINAVIAN JOURNAL OF ECONOMICS, vol. 122, 2020, pp. 732-761.
Marchal, L., Naiditch, C.: How Borrowing Constraints Hinder Migration: Theoretical Insights from a Random Utility Maximization Model. SCANDINAVIAN JOURNAL OF ECONOMICS. 122, 732-761 (2020).
Marchal, Léa, and Naiditch, Claire. “How Borrowing Constraints Hinder Migration: Theoretical Insights from a Random Utility Maximization Model”. SCANDINAVIAN JOURNAL OF ECONOMICS 122.2 (2020): 732-761.