Simon Gorlach (Bocconi University) on “Borrowing Constraints, Migrant Selection, and the Dynamics of Return and Repeat Migration”, jointly organised by Centro Studi Luca d’Agliano and Collegio Carlo Alberto within the Migration Observatory. November 29, 2019, Collegio Carlo Alberto, h 12.00.
Abstract:
Higher earnings in a migrant’s country of origin change migration dynamics: they increase the opportunity cost of migration, but also relax financial constraints. To evaluate the effects on return and repeat migration, I formulate a dynamic model of consumption and location choices. Estimation uses both Mexican and U.S. data sources, and exploits a randomized experiment for identification. I find that an increase in Mexican household earnings shortens migration duration, but raises the average number of migrations. For low-income households, a rise in earnings leads to a more than proportional effect on consumption expenditure in Mexico, arising from repatriated savings.
