Informational Cascades and Decision to Migrate

24 Pages Posted: 30 Apr 2002

See all articles by Gil S. Epstein

Gil S. Epstein

Bar-Ilan University - Department of Economics; IZA Institute of Labor Economics; University College London - CReAM - Centre for Research and Analysis of Migration

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Date Written: March 2002

Abstract

We introduce the idea that informational cascades can explain the observed regularity that emigrants from the same locations also tend to choose the same foreign locations. Thus informational cascades generates herd behaviour. Herd behaviour is compared with the network externalities explanation of the same phenomenon. The relation between social tensions and herd behaviour is observed when local populations are xenophobic.

Keywords: Migration, informational cascades, herd behaviour, xenophobia, network-externalities

JEL Classification: F22, J61

Suggested Citation

Epstein, Gil S., Informational Cascades and Decision to Migrate (March 2002). CEPR Discussion Paper No. 3287. Available at SSRN: https://ssrn.com/abstract=310102

Gil S. Epstein (Contact Author)

Bar-Ilan University - Department of Economics ( email )

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HOME PAGE: http://faculty.biu.ac.il/~epsteig/

IZA Institute of Labor Economics ( email )

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University College London - CReAM - Centre for Research and Analysis of Migration ( email )

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