A Land of Milk And Honey With Streets Paved With Gold : Do Emigrants Have Over-Optimistic Expectations About Incomes Abroad ?

A Land of Milk And Honey With Streets Paved With Gold : Do Emigrants Have Over-Optimistic Expectations About Incomes Abroad ? / McKenzie, David

Millions of people emigrate every year in search of better economic and social opportunities. Anecdotal evidence suggests that emigrants may have over-optimistic expectations about the incomes they can earn abroad, resulting in excessive migration pressure, and in disappointment among those who do m...

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Bibliographische Detailangaben
Hauptverfasser:McKenzie, David J.
Weitere Verfasser:Gibson, John, 1964-
Stillman, Steven
Format: Online-Resource
Sprache:Englisch
Veröffentlicht:Washington, D.C : The World Bank, 2007
Schlagworte:
Erziehung
Accurate Information
Annual Income
Bank
Consumer
Consumer Goods
Demands
Earnings
Economic Theory and Research
Education
Finance and Financial Sector Development
Financial Literacy
Fiscal and Monetary Policy
Health Systems Development and Reform
Health, Nutrition and Population
Household Income
Income
Incomes
Information
Labor Markets
Labor Policies
Macroeconomics and Economic Growth
Money
Population Policies
Public Sector Development
Remittances
Social Protections and Labor
Internet:URL des Erstveröffentlichers
Details
Zusammenfassung:Millions of people emigrate every year in search of better economic and social opportunities. Anecdotal evidence suggests that emigrants may have over-optimistic expectations about the incomes they can earn abroad, resulting in excessive migration pressure, and in disappointment among those who do migrate. Yet there is almost no statistical evidence on how accurately these emigrants predict the incomes that they will earn working abroad. In this paper the authors combine a natural emigration experiment with unique survey data on would-be emigrants' probabilistic expectations about employment and incomes in the migration destination. Their procedure enables them to obtain moments and quantiles of the subjective distribution of expected earnings in the destination country. The authors find a significant underestimation of both unconditional and conditional labor earnings at all points in the distribution. This underestimation appears driven in part by potential migrants placing too much weight on the negative employment experiences of some migrants, and by inaccurate information flows from extended family, who may be trying to moderate remittance demands by understating incomes
Beschreibung:Weitere Ausgabe: McKenzie, David: A Land of Milk And Honey With Streets Paved With Gold
Beschreibung:1 Online-Ressource (34 Seiten)

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