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Lecture

A MODEL OF IMMIGRATION.docx

by
6 pages93 viewsSummer 2008

Department
Geography
Course Code
GEOG 2210
Professor
J.Wright

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A MODEL OF IMMIGRATION
the model is to examine the interaction/relationship between two
countries and their immigration markets...the author asserts that
adding more countries into the model would complicate it. However
adding more countries in the model would not retract from the overall
message of the theory. Proceed.
Borjas: income-maximization is “a necessary condition for utility
maximization” (however there are other factors such as culture,
weather, crime rate)
“income maximization theorem” is testable THUS it is justified in
explaining other processes in the world
[Borjas inserts a bunch of lame things with logarithms and coefficients,
but this is his argument minus the math...]
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With the crazy math that Borjas uses...he argues that individual
behaviour is influenced by the variable earnings they could
receive in different countries … so migrants will go to the host
country that will offer them the largest earnings...individuals will
remain in their own countries when the costs exceed the
benefits
What determines the size of flow?
emigration rate (exit rate) is higher the greater the mean
income is in the host country
the emigration rate is lower when costs to leave and migrate
are high
emigration rate is higher when they payoff in the host country is
higher than in the source country
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