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  • 1
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: We study a policy response to an increase in post-merger social stress. If a merger of groups of people is viewed as a revision of their social space, then the merger alters people's comparators and increases social stress: the social stress of a merged population is greater than the sum of the levels of social stress of the constituent populations when apart. We use social stress as a proxy measure for looming social protest. As a response to the post-merger increase in social stress, we consider a policy aimed at reversing the negative effect of the merger by bringing the social stress of the merged population back to the sum of the pre-merger levels of social stress of the constituent populations when apart. We present, in the form of an algorithm, a cost-effective policy response which is publicly financed and does not reduce the incomes of the members of the merged population. We then compare the financial cost of implementing such a policy when the merger involves more or fewer groups. We show that the cost may fall as the number of merging groups rises.
    Keywords: D04 ; D63 ; F55 ; H53 ; P51 ; ddc:330 ; merger of populations ; revision of social space ; aggregate relative deprivation ; social stress ; a cost-effective policy response
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 2
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: This paper adds three dimensions to the received literature: it models migration when the individuals' preferences regarding their relative income are ordinal, it works out the resulting spatial steady state distribution of the individuals, and it shows that the aggregate of the individuals' migration choices in the spatial steady state distribution sums up to the social optimum. This finding does not apply when the individuals' preferences regarding their relative income are cardinal. We highlight the importance of the assumption about the nature of the individuals' social preferences (whether ordinal or cardinal) to studying and predicting their migration behavior, and to elucidating the consequences of that behavior for social welfare.
    Keywords: C61 ; C62 ; D50 ; D60 ; D62 ; I31 ; R13 ; R23 ; Z13 ; ddc:330 ; ordinal preferences ; distaste for low relative income ; an ordinal measure of income relative deprivation ; interregional migration ; steady state spatial distribution ; social welfare
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 3
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: This paper explores the following chain of conjectures: rising use of the internet, the widespread access to global information, and intensified communication between regions and countries brought about, for example, by intensified trade links bring about expansion of people's social space and their set of comparators; this expansion increases people's stress and strengthens their inclination to resort to migration as a means of reducing this heightened stress. Other things held constant, the expansion of people's social space intensifies their inclination to move across geographical space.
    Keywords: A12 ; A14 ; B41 ; D01 ; F15 ; F22 ; J61 ; O15 ; Z13 ; ddc:330 ; expansion of social space ; relative deprivation ; migration
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 4
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Keywords: ddc:330 ; Sparen ; Zeitpräferenz ; Niedriglohn ; Theorie ; Migranten ; Migrationstheorie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 5
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: 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.
    Keywords: ddc:330 ; Institutional and Behavioral Economics ; Soziale Werte ; Altruismus ; Intergenerationale Übertragung ; Konsum ; Erbe ; Theorie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 6
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: An increase in the probability of work abroad, where the returns to schooling are higher than at home, induces more individuals in a developing country to acquire education, which leads to an increase in the supply of educated workers in the domestic labor market. Where there is a sticky wage-rate, the demand for labor at home will be constant. With a rising supply and constant demand, the rate of unemployment of educated workers in the domestic labor market will increase. Thus, the prospect of employment abroad causes involuntary educated unemployment at home. A government that is concerned about educated unemployment and might therefore be expected to encourage unemployed educated people to migrate will nevertheless, under certain conditions, elect to restrict the extent of the migration of educated individuals.
    Keywords: E24 ; F22 ; J24 ; O15 ; ddc:330 ; Bildungsinvestition ; Facharbeiter ; Lohnrigidität ; Unterbeschäftigung ; Arbeitslosigkeit ; Auswanderung ; Bildungsertrag ; Erwartungstheorie ; Theorie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 7
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Keywords: ddc:330 ; Humankapital ; Bildungsinvestition ; Wohlfahrtstheorie ; Auswanderung ; Brain Drain ; Externer Effekt ; Migrationspolitik ; Pareto-Optimum ; Theorie ; Entwicklungsländer
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 8
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: In the model of Stark et al. (1997, 1998), the possibility of employment in a developed country raises the level of human capital acquired by workers in the developing country. We show that this result holds even when workers have the option to save.
    Keywords: D91 ; F22 ; J22 ; J24 ; ddc:330 ; Human capital formation ; Savings ; Intertemporal choice ; Prospect of migrating
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 9
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: 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 fall. The combined effect is a decrease in the average level of human capital in the home country.
    Keywords: F22 ; J24 ; O15 ; ddc:330 ; Migration of unskilled workers ; Human capital formation ; Depletion of human capital ; Ungelernte Arbeitskräfte ; Internationale Wanderung ; Bildungsinvestition ; Brain Drain ; Theorie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 10
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    Bonn: University of Bonn, Center for Development Research (ZEF)
    Publication Date: 2018-06-27
    Description: We draw a distinction between the social integration and economic assimilation of migrants, and study an interaction between the two. We define social integration as blending into the host country´s society, and economic assimilation as acquisition of human capital that is specific to the host country´s labor market. We show that a non-integrated migrant finds it optimal to acquire a relatively limited quantity of human capital; with fellow migrants constituting his only comparison group, a non-integrated migrant does not have a relative-deprivation-based incentive to close the income gap with the natives. However, when a migrant is made to integrate, his social proximity to the natives exposes him to relative deprivation, which in turn prompts him to form more destination-specific human capital in order to increase his earnings and narrow the income gap with the natives. In this way, social integration becomes a catalyst for economic assimilation.
    Keywords: D01 ; F22 ; J15 ; J24 ; J61 ; O15 ; Z10 ; ddc:330 ; Assimilation ; Integration ; Social proximity ; Interpersonal comparisons ; Relative deprivation ; Human capital formation
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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