Title :

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

Author(s) :

Marchal, Léa [Auteur]
Lille économie management - UMR 9221 [LEM]
Naiditch, Claire [Auteur]
Lille économie management - UMR 9221 [LEM]
Economie Quantitative, Intégration, Politiques Publiques et Econométrie [EQUIPPE]

Journal title :

Scandinavian Journal of Economics

Pages :

732-761

Publisher :

Wiley

Publication date :

2019

ISSN :

0347-0520

HAL domain(s) :

Sciences de l'Homme et Société/Economies et finances

English abstract : [en]

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 ...
Show more >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.Show less >

Language :

Anglais

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL