WEEK1
modelling decisions
migration
Forcountryofhomecountryandcountry I thostcountryl
skills manual Sm
cognitive Sc
skills
Price manual b t countryi fi o 1
cognitiveskills je hostcountry1
Productive
capacity
humancapital
bis bimsmtbic.sc
inefficiencyunits
Returntohumancapital Rit
incountryi timeperiod t
n
t
In wit InRie bis
Decision
making
Oneshotmigrationdecision noreturn
Liverfortperiods
LetCbethemigrationcosts
fixedcost
net
gains
Eeoc e EEolitige c
oflifetimey
pinvhost Pingshiffie
country
migrateif I o
maynotmigrateevenif I o if
v largeC creditconstrainedpeoplecan'tafford
upfrontcortcevenw netgain
a preferencesforamenities nonmonetary
4 weather 4 family
, Addingreturnmigration
Liverfor Tperiods
Decideswhetherto
migrateandhowlongtomigratefor
t
Tiamat homecountryo
yes cjl hostcountry 1
utilityfromlivingincountry
4 assumeEo E homebiasedpreferences
Max lifetime u
Ej Cj s t budgetconstraint
pricesof
goods
given Eos E p pot
hotter
therformigrgingffstbethat
Now letp p withhomebiasedpreferences
case I wot et homebiasedpreferences
Yin
is
country
Motiveto host p
country
case 2 w I incomeeffect ed
Yin
aime relativeto host I don'tneedtoworkasmuchforsomeearnings
country country
substitutioneffect et
relative
wages
workmoreto earnmoresincewt
, WEEK2
IRoymodelI
country E emigration I immigration
Labour
income Ye incountryE Yji N Mj651 Ij E Il
Yeiincountry I GulYei YIi GIE
Si n N10,11 Cov51,521 0
manual Sa
Productive
capacity UI bees t beS2 incountry I
valueofhumancapital
UE BEISI t beSa incountryE
p gg
i returnofworker i incountryj is eds Rjxebjest this
yj Rj x
j
t bi
252
yj Rj xebi's iny Yj InRj t bjas t bj 2 Yji Mj tUji
5
, Yj N Hj Gj
Yji Hj tUji
var Yj 6 Varlie t Uji
var bias t basal
uajq.lt
var
triffid
t var
bys basal
bjIvarI tbjIvars2l
201gg
jj
siintoIt
6 by t by Vcr at
ya YE
forhighershillprices incomevariance f
CovYa YEI GIE ElYzYel E Ya E Ye
E I MI t beS t bySa Me t beaSI t be
252 I HIME
it
3 es s.t m
1
E1si2l 1Elsisj1 o Else1 0 Els4 1
CovYa YEI ColMtai Meta I Coolte MItoutte u I Could I Couldmet Covus I GIE beebe t beby
0
Letthemigrationcostsbe a
worker i migrates if
jÉ
µ t Uzi k ME t Ei t
UIi UEi Met K HI y N lpg by t bit
Indomuarables
g
modelling decisions
migration
Forcountryofhomecountryandcountry I thostcountryl
skills manual Sm
cognitive Sc
skills
Price manual b t countryi fi o 1
cognitiveskills je hostcountry1
Productive
capacity
humancapital
bis bimsmtbic.sc
inefficiencyunits
Returntohumancapital Rit
incountryi timeperiod t
n
t
In wit InRie bis
Decision
making
Oneshotmigrationdecision noreturn
Liverfortperiods
LetCbethemigrationcosts
fixedcost
net
gains
Eeoc e EEolitige c
oflifetimey
pinvhost Pingshiffie
country
migrateif I o
maynotmigrateevenif I o if
v largeC creditconstrainedpeoplecan'tafford
upfrontcortcevenw netgain
a preferencesforamenities nonmonetary
4 weather 4 family
, Addingreturnmigration
Liverfor Tperiods
Decideswhetherto
migrateandhowlongtomigratefor
t
Tiamat homecountryo
yes cjl hostcountry 1
utilityfromlivingincountry
4 assumeEo E homebiasedpreferences
Max lifetime u
Ej Cj s t budgetconstraint
pricesof
goods
given Eos E p pot
hotter
therformigrgingffstbethat
Now letp p withhomebiasedpreferences
case I wot et homebiasedpreferences
Yin
is
country
Motiveto host p
country
case 2 w I incomeeffect ed
Yin
aime relativeto host I don'tneedtoworkasmuchforsomeearnings
country country
substitutioneffect et
relative
wages
workmoreto earnmoresincewt
, WEEK2
IRoymodelI
country E emigration I immigration
Labour
income Ye incountryE Yji N Mj651 Ij E Il
Yeiincountry I GulYei YIi GIE
Si n N10,11 Cov51,521 0
manual Sa
Productive
capacity UI bees t beS2 incountry I
valueofhumancapital
UE BEISI t beSa incountryE
p gg
i returnofworker i incountryj is eds Rjxebjest this
yj Rj x
j
t bi
252
yj Rj xebi's iny Yj InRj t bjas t bj 2 Yji Mj tUji
5
, Yj N Hj Gj
Yji Hj tUji
var Yj 6 Varlie t Uji
var bias t basal
uajq.lt
var
triffid
t var
bys basal
bjIvarI tbjIvars2l
201gg
jj
siintoIt
6 by t by Vcr at
ya YE
forhighershillprices incomevariance f
CovYa YEI GIE ElYzYel E Ya E Ye
E I MI t beS t bySa Me t beaSI t be
252 I HIME
it
3 es s.t m
1
E1si2l 1Elsisj1 o Else1 0 Els4 1
CovYa YEI ColMtai Meta I Coolte MItoutte u I Could I Couldmet Covus I GIE beebe t beby
0
Letthemigrationcostsbe a
worker i migrates if
jÉ
µ t Uzi k ME t Ei t
UIi UEi Met K HI y N lpg by t bit
Indomuarables
g
