The Role of Community in Migration Dynamics

21 Pages Posted: 27 Aug 2008

See all articles by Sergio Vergalli

Sergio Vergalli

University of Brescia - Department of Economics; Fondazione Eni Enrico Mattei (FEEM), Milan

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In this paper, I have presented a theoretical model that investigates the observable hysteresis process in migration dynamics. In the model the migration choice depends not only on wage differential, but also on a U-shaped benefit function of a community of homogenous ethnic individuals, according to the theory of clubs. The results, based on real option theory, explain that observable jumps in migration flows could depend not only on exogenous shocks, but also on two endogenous variables: the number of coordinated immigrants and the dimension of the community. Indeed, migration choice is delayed until a critical mass of immigrants is reached and possible rigidities of optimal district size could magnify this hysteresis process.

Suggested Citation

Vergalli, Sergio, The Role of Community in Migration Dynamics. LABOUR, Vol. 22, Issue 3, pp. 547-567, September 2008, Available at SSRN: or

Sergio Vergalli (Contact Author)

University of Brescia - Department of Economics ( email )

Via San Faustino 74B
Brescia, 25122

Fondazione Eni Enrico Mattei (FEEM), Milan ( email )

Corso Magenta 63
20123 Milan

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