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Registros recuperados: 34
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A back-door brain drain AgEcon
Stark, Oded; Byra, Lukasz.
In this paper we study the impact of the international migration of unskilled workers on skill formation and the average skill level in the home country. We analyze what appears to be the least threatening scenario from the point of view of its effect on the supply of skills at home: namely, migration exclusively by unskilled workers. Somewhat surprisingly, we find that even without the departure of skilled workers, the home country suffers reduced aggregate skill formation. Although as a response to a higher wage rate per unit of human capital in the new equilibrium skilled workers choose to accumulate more human capital than before the opening up to migration of unskilled workers, the number and share of skilled workers in the home country’s workforce...
Tipo: Working Paper Palavras-chave: Migration of unskilled workers; Human capital formation; Depletion of human capital; Labor and Human Capital; F22; J24; O15.
Ano: 2012 URL: http://purl.umn.edu/122433
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A concern about low relative income, and the alignment of utilitarianism with egalitarianism AgEcon
Stark, Oded; Kobus, Martyna; Jakubek, Marcin.
A utilitarian social planner who maximizes social welfare assigns the available income to those who are most efficient in converting income into utility. However, when individuals are concerned about their income falling behind the incomes of others, the optimal income distribution under utilitarianism is equality of incomes.
Tipo: Working or Discussion Paper Palavras-chave: Utilitarianism; Income equality; Social welfare maximization; Relative income; Labor and Human Capital; H0; I0; I30; I31.
Ano: 2011 URL: http://purl.umn.edu/117257
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A Reluctance to Assimilate AgEcon
Stark, Oded; Fan, C. Simon.
Quite often, migrants appear to exert little effort to absorb the mainstream culture and to learn the language of their host society, even though the economic returns (increased productivity and enhanced earnings) to assimilation are high. We show that when interpersonal comparisons affect individuals' wellbeing and when a more intensive assimilation results in migrants' comparing themselves more with the richer natives and less with fellow migrants, then the effort extended to assimilate will be muted.
Tipo: Working or Discussion Paper Palavras-chave: Labor and Human Capital.
Ano: 2006 URL: http://purl.umn.edu/7125
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A Theory of Migration as a Response to Occupational Stigma AgEcon
Stark, Oded; Fan, C. Simon.
Drawing on the literature of occupational status and social distance, a theory is developed of labor migration that is prompted by a desire to avoid “social humiliation.” A closed-economy general equilibrium model that incorporates occupational status and examines the interaction between the goods market and the labor market is constructed. This framework is then extended from a closed, single economy to an open economy setting in a world that consists of two countries or two regions. It is shown that as long as migration can reduce humiliation sufficiently, migration will occur even between two identical economies. Hence, a new model of migration is presented in which migration arises from a wish to reap social exposure gains. The model shows that...
Tipo: Working or Discussion Paper Palavras-chave: Migration; Social distance; Occupational status; Social exposure gains; General equilibrium; Consumer/Household Economics; Institutional and Behavioral Economics; Labor and Human Capital; F22; J61; R23.
Ano: 2009 URL: http://purl.umn.edu/55363
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An Evolutionary Edge of Knowing Less (or: On the "Curse" of Global Information) AgEcon
Stark, Oded; Behrens, Doris A..
Consider a population of farmers who live around a lake. Each farmer engages in trade with his two adjacent neighbors. The trade is governed by a prisoner’s dilemma “rule of engagement.” A farmer’s payoff is the sum of the payoffs from the two prisoner’s dilemma games played with his two neighbors. When a farmer dies, his son takes over. The son decides whether to cooperate or defect by considering the actions taken and the payoffs received by the most prosperous members of the group comprising his own father and a set of his father’s neighbors. The size of this set, which can vary, is termed the “span of information.” It is shown that a larger span of information can be detrimental to the stable coexistence of cooperation and defection, and that in...
Tipo: Working or Discussion Paper Palavras-chave: Span of interaction; Span of information; Imitation; Social welfare; Community/Rural/Urban Development; D83; R12; O4.
Ano: 2009 URL: http://purl.umn.edu/49924
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Casting the naturalization of asylum seekers as an economic problem AgEcon
Stark, Oded.
The naturalization of asylum seekers is modeled as an economic problem. In choosing their level of investment in host-country-specific human capital, asylum seekers take into consideration the probability of their being naturalized. The government of the host country chooses the probability of naturalization that most encourages the acquisition of such human capital. That human capital, in turn, increases the asylum seekers’ productivity and earnings and, consequently, maximizes the government’s tax receipts if the asylum seekers are allowed to stay permanently. Conditions are presented under which the optimal level of investment in the host-country-specific human capital is positive, and rises in the probability of naturalization. The asylum seeker’s...
Tipo: Working or Discussion Paper Palavras-chave: The probability of naturalization; Investment in host-country-specific human capital; Economic behavior of asylum seekers; Economic behavior of the government of the host country; Stackelberg game; Financial Economics; Labor and Human Capital; Political Economy; A13; F20; J24; J41; J61.
Ano: 2010 URL: http://purl.umn.edu/62160
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Consumption Smoothing, Migration and Marriage: Evidence from Rural India AgEcon
Rosenzweig, Mark R.; Stark, Oded.
Migration in India, particularly in rural areas, is dominated by the movements of women for the purpose of marriage. We seek to explain these mobility patterns by examining marital arrangements among Indian households. In particular, we hypothesize that the marrying out of daughters to locationally distant, dispersed yet kinship-related households, are manifestations of implicit inter-household contractual arrangements aimed at mitigating income risks and facilitating consumption smoothing in an environment characterized by information costs and spatially covariant risks. Analysis of longitudinal South Indian village data lends support to the hypothesis. Marriage cum migration contributes significantly to a reduction in the variability of household food...
Tipo: Working or Discussion Paper Palavras-chave: Consumer/Household Economics.
Ano: 1987 URL: http://purl.umn.edu/7515
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COOPERATION AND WEALTH AgEcon
Stark, Oded.
We calculate the equilibrium fraction of cooperators in a population in which payoffs accrue from playing a single-shot prisoner's dilemma game. Individuals who are hardwired as cooperators or defectors are randomly matched into pairs, and cooperators are able to perfectly find out the type of a partner to a game by incurring a recognition cost. We show that the equilibrium fraction of cooperators relates negatively to the population's level of wealth.
Tipo: Working or Discussion Paper Palavras-chave: Research Methods/ Statistical Methods.
Ano: 2003 URL: http://purl.umn.edu/18763
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Differential Migration Prospects, Skill Formation, and Welfare AgEcon
Stark, Oded; Zakharenko, Roman.
This paper develops a one sector, two-input model with endogenous human capital formation. The two inputs are two types of skilled labor: “engineering,” which exerts a positive externality on total factor productivity, and “law,” which does not. The paper shows that a marginal prospect of migration by engineers increases human capital accumulation of both types of workers (engineers and lawyers), and also the number of engineers who remain in the country. These two effects are socially desirable, since they move the economy from the (inefficient) free-market equilibrium towards the social optimum. The paper also shows that if the externality effect of engineering is sufficiently powerful, everyone will be better off as a consequence of the said prospect of...
Tipo: Working Paper Palavras-chave: Heterogeneous human capital; Differential externality effects; Migration of educated workers; Human capital formation; Efficient acquisition of human capital; Beneficial brain drain; Labor and Human Capital; F22; J61; R23.
Ano: 2011 URL: http://purl.umn.edu/119111
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DYNASTIES AND DESTINY: ON THE ROLES OF ALTRUISM AND IMPATIENCE IN THE EVOLUTION OF CONSUMPTION AND BEQUESTS AgEcon
Stark, Oded; Falk, Ita.
We study the joint role of altruism and impatience, and the impact of evolution in the formation of long-term time preferences and in the determination of optimal consumption and optimal bequests. We show how the consumption paths of dynasties relate to altruism and to impatience, and we reason that long-lived dynasties will be characterized by a higher degree of altruism and a lower degree of impatience than short-lived dynasties.
Tipo: Working or Discussion Paper Palavras-chave: Institutional and Behavioral Economics.
Ano: 2001 URL: http://purl.umn.edu/18749
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Endogenous Selection of Comparison Groups, Human Capital Formation, and Tax Policy AgEcon
Stark, Oded; Hyll, Walter; Wang, Yong.
This paper considers a setting in which the acquisition of human capital entails a change of location in social space that causes individuals to revise their comparison groups. Skill levels are viewed as occupational groups, and moving up the skill ladder by acquiring additional human capital, which in itself is rewarding, leads to a shift in the individual’s inclination to compare himself with a different, and on average better-paid, comparison group, which in itself is penalizing. The paper sheds new light on the dynamics of human capital formation, and suggests novel policy interventions to encourage human capital formation in the aggregate and, at the same time, reduce inter-group income inequality.
Tipo: Working or Discussion Paper Palavras-chave: Human capital formation; Skill levels as occupational groups; Interpersonal comparisons; Relative deprivation; Tax policy; Subsidization; Labor and Human Capital; D11; H24; H30; J24.
Ano: 2011 URL: http://purl.umn.edu/99415
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Gauging the potential for social unrest AgEcon
Stark, Oded; Hyll, Walter; Behrens, Doris A..
It stands to reason that social unrest does not erupt out of the blue. Although there are a great many reasons why social dismay might descend into social disorder, only few yardsticks or indices can plausibly be used to gauge the potential for social unrest (PSU). If policy makers want to undertake public action to prevent social dismay escalating into social disruption, they obviously need to draw on practical sensors. This paper assesses critically the adequacy of two such measures, the polarization (P) index, and the total relative deprivation (TRD) index. The paper proposes a tentative guide to selecting between these two measures. A review of three stylized scenarios suggests that, where income redistributions reduce the number of distinct income...
Tipo: Working or Discussion Paper Palavras-chave: Social dismay; The potential for social unrest; Polarization; Total relative deprivation; Policy choice; Public Economics; D31; D63.
Ano: 2009 URL: http://purl.umn.edu/53721
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In search of an evolutionary edge: trading with a few, more, or many AgEcon
Stark, Oded; Behrens, Doris A..
Consider a population of farmers who live around a lake. Each farmer engages in trade with his m adjacent neighbors, where m is termed the "span of interaction." Trade is governed by a prisoner’s dilemma "rule of engagement." A farmer’s payoff is the sum of the payoffs from the m prisoner’s dilemma games played with his m/2 neighbors to the left, and with his m/2 neighbors to the right. When a farmer dies, his son takes over. The son who adheres to his father’s span of interaction decides whether to cooperate or defect by considering the actions taken and the payoffs received by the most prosperous member of the group comprising his father and his father’s m trading partners. Under a conventional structure of payoffs, it is shown that a large span of...
Tipo: Working or Discussion Paper Palavras-chave: Local interaction; Span of interaction; Imitation; Cooperation; Social welfare; Farm Management; D83; R12; O4.
Ano: 2010 URL: http://purl.umn.edu/94280
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Integration, social distress, and policy formation AgEcon
Stark, Oded.
I study the integration of regions in the form of a merger of populations, which I interpret as a revision of people’s social space and their comparison set; I illustrate the way in which a merger can aggravate social distress; and I consider policy responses. Specifically, I view the merger of populations as a merger of income vectors; I measure social distress by aggregate relative deprivation; I demonstrate that a merger increases aggregate relative deprivation; and I show that a social planner is able to reverse this increase by means of least-cost, post-merger increases in individual incomes, but is unable to counter it by relying exclusively on a self-contained income redistribution that retains individual levels of wellbeing at their pre-merger...
Tipo: Working Paper Palavras-chave: Integration of regions; Merger of populations; Revision of social space; Aggregate relative deprivation; Social distress; Policy responses; Community/Rural/Urban Development; International Relations/Trade; D04; D63; F55; H53; P51.
Ano: 2012 URL: http://purl.umn.edu/120179
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International Migration and "Educated Unemployment" AgEcon
Stark, Oded; Fan, C. Simon.
This paper provides a novel explanation of "educated unemployment," which is a salient feature of the labor markets in a number of developing countries. In a simple job-search framework we show that "educated unemployment" is caused by the perspective of international migration, that is, by the possibility of a "brain drain." In addition, the analysis shows that a developing country may end up with more educated workers despite the brain drain and educated unemployment.
Tipo: Working or Discussion Paper Palavras-chave: Labor and Human Capital.
Ano: 2006 URL: http://purl.umn.edu/7126
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Is population growth conducive to the sustainability of cooperation? AgEcon
Stark, Oded; Jakubek, Marcin.
This paper asks whether population growth is conducive to the sustainability of cooperation. A simple model is developed in which farmers who live around a circular lake engage in trade with their adjacent neighbors. The payoffs from this activity are governed by a prisoner’s dilemma “rule of engagement.” Every farmer has one son when the population is not growing, or two sons when it is growing. In the former case, the son takes over the farm when his father dies. In the latter case, one son stays on his father’s farm, whereas the other son settles around another lake, along with the “other” sons of the other farmers. During his childhood, each son observes the strategies and the payoffs of his father and of the trading partners of his father, and...
Tipo: Working or Discussion Paper Palavras-chave: Population growth; Imitation; Sustainability of cooperation; Community/Rural/Urban Development; Farm Management; Institutional and Behavioral Economics; Land Economics/Use; Production Economics; Productivity Analysis; C72; D01; D83; J19; J62; R12; R23.
Ano: 2011 URL: http://purl.umn.edu/109965
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Losses and Gains to Developing Countries from the Migration of Educated Workers: An Overview of Recent Research, and New Reflections AgEcon
Stark, Oded; Fan, C. Simon.
This paper synthesizes and extends recent research on "The New Economics of the Brain Drain." In a unified framework, the paper shows that while recently identified adverse repercussions of the brain drain exacerbate the long-recognized negative impacts of the brain drain, longer-term consequences turn the brain drain into the harbinger of powerful gains. These gains have been studied already in recent research, or merit attention in future research.
Tipo: Working or Discussion Paper Palavras-chave: Labor and Human Capital.
Ano: 2007 URL: http://purl.umn.edu/7121
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ON THE DEMAND FOR GRANDCHILDREN: TIED TRANSFERS AND THE DEMONSTRATION EFFECT AgEcon
Cox, Donald; Stark, Oded.
It is argued that parents provide help with housing downpayments in order to encourage the production of grandchildren, and that such a subsidization emanates from the "demonstration effect:" a child's propensity to furnish parents with attention and care can be conditioned by parental example. Parents who desire such transfers in the future have an incentive to make transfers to their own parents in order to instill appropriate preferences in their children. This generates a derived demand for grandchildren since potential grandparents will be treated better by their adult children if the latter have their own children to whom to demonstrate the appropriate behavior. Empirical work indicates behavior consistent with subsidization of the production of...
Tipo: Working or Discussion Paper Palavras-chave: Consumer/Household Economics.
Ano: 2004 URL: http://purl.umn.edu/18751
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On the Economics of Refugee Flows AgEcon
Stark, Oded.
Although the phenomenon of refugee flows is not devoid of economic connotations, it has so far been investigated primarily by political scientists and sociologists. The analytical tools of economic inquiry have not yet been applied to this subject, although it stands to reason that such a study will contribute to our understanding of why refugee flows occur and will guide the policy response. This note illustrates how economic analysis can be brought to bear on three key aspects of refugee flows: fear, poverty, and group movement.
Tipo: Working or Discussion Paper Palavras-chave: Labor and Human Capital; Political Economy.
Ano: 2004 URL: http://purl.umn.edu/18757
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On the Evolutionary Edge of Migration as an Assortative Mating Device AgEcon
Stark, Oded; Behrens, Doris A.; Wang, Yong.
Replaced with revised version of paper 02/27/08.
Tipo: Working or Discussion Paper Palavras-chave: Institutional and Behavioral Economics; Labor and Human Capital.
Ano: 2008 URL: http://purl.umn.edu/6316
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