On the relation between origin income and migration.

Abstract

"While traditional migration theory suggests that the rate of migration is negatively related to income at the origin, many empirical studies of aggregate migration yield a non-significant or even a positive relation. This paper utilizes a simplified model of migration to demonstrate that one possible reason for such results is the imperfect capital market facing migrants. Higher average income at the origin may imply a higher number of individuals who have the cash resources to finance migration, thus generating a positive relation between regional income and migration. The conclusions suggest the use of non-linear specifications in empirical migration studies."