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Discussion Paper Details

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Title: Where do Migrants Go? Risk-Aversion, Mobility Costs and the Locational Choice of Migrants

Author(s): Francesco Daveri and Riccardo Faini

Publication Date: December 1996

Keyword(s): bunching, Migration and risk diversification

Programme Area(s): Human Resources

Abstract: As part of their effort to pool individual risk, households consider spreading their members over a plurality of locations, both inside and outside their country of origin. At the same time, the world is ridden with ?Chinatowns? and ?Little Italies?: people, whenever they move, tend to bunch in the same location. Bunching would appear fundamentally at odds with the desire to diversify risk. In this paper we provide a framework to reconcile both spatial bunching and the spread of migrants, combining risk-aversion and concavity of mobility costs at the household level. Evidence from Southern Italy is consistent with the main predictions from our model.

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Bibliographic Reference

Daveri, F and Faini, R. 1996. 'Where do Migrants Go? Risk-Aversion, Mobility Costs and the Locational Choice of Migrants'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1540