Cumulative causation and selectivity in labour market oriented migration caused by imperfect information

Maier G. (1985) Cumulative causation and selectivity in labour market oriented migration caused by imperfect information Reg. Studies 19, 231–241. The paper discusses the implications of job search models for migration. The information assumption of the standard search model turns out to be too restrictive to permit insights into the migration decision process. Many hypotheses derived from these assumptions contradict empirical observations. Dropping the assumption of perfect information about the wage offer distribution leads to a more complex search model. In this model information about the wage offer distribution is imperfect and accumulated through the search process. When based on this search model, the migration model is largely enriched and also more realistic. Strategies, which are suboptimal or even absurd with perfect information about the wage offer distribution, such as purchase of information, can be preferable in a migration model, when imperfect information is assumed. Although the model presented basically is neoclassical with modified information assumptions, it can explain many phenomena utilized in the argumentation of polarization theory. The paper discusses selectivity with respect to age, educational level and risk preference and cumulative effects caused by past migration flows and the size of regions.