2012
DOI: 10.1111/j.1540-5982.2012.01714.x
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International migration with capital constraints: interpreting migration from the Netherlands to Canada in the 1920s

Abstract: An inability to borrow affected migration from Europe to North America. This capital constraint is formalized with a life‐cycle model, where agents jointly choose how much to save, the optimal period to finance migration, and whether to migrate. Using a life‐cycle model we show that preference for the home country, the period of adjustment after arrival, and the direct cost of migration affect the savings of migrants, age at migration, and who migrates. These results are discussed in light of wages in Canada a… Show more

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Cited by 13 publications
(5 citation statements)
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References 22 publications
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“…But because the costs and benefits of migration vary by individual characteristics, migrants are rarely randomly selected from their population. Human capital, or skill, is a key variable in the decision to migrate because skill relates to variables that enable migration, such as income, wealth, and liquidity, and to the expected returns of migration (Sjaastad 1962, Borjas 1987, Chiquiar and Hanson 2005, Armstrong and Lewis 2012.…”
Section: Migration From Climate Shocks and Selectionmentioning
confidence: 99%
“…But because the costs and benefits of migration vary by individual characteristics, migrants are rarely randomly selected from their population. Human capital, or skill, is a key variable in the decision to migrate because skill relates to variables that enable migration, such as income, wealth, and liquidity, and to the expected returns of migration (Sjaastad 1962, Borjas 1987, Chiquiar and Hanson 2005, Armstrong and Lewis 2012.…”
Section: Migration From Climate Shocks and Selectionmentioning
confidence: 99%
“…Given a moving cost, K, the income stream over the lifetime is given by: 20 On Italian immigration and the farm labour system, see Sturino (1988). 21 The model follows Armstrong and Lewis (2012), which looked specifically at migration to Canada from the Netherlands. In that paper the emphasis was on savings and the timing of migration.…”
Section: Canadian Policy and Immigration During The 1920smentioning
confidence: 99%
“…9 The taste parameter, concern for status, and a borrowing constraint are all part of a life-cycle model, where an individual chooses optimal migration time, and based on that optimal time, compares lifetime utility if they do or do not migrate. In Armstrong and Lewis (2012), we considered migration from the Netherlands to Canada using a life-cycle framework where our emphasis was on savings and migration time. Here we extend the analysis to four more European countries: Ireland, Italy, Poland, and Sweden.…”
Section: Introductionmentioning
confidence: 99%
“…The 1920s is also the focus of Alex Armstrong and Frank Lewis's () work on migration. They use ship passenger manifests to help explain the large wage differences between Canada and the countries of origin of the immigrants.…”
Section: Migrationmentioning
confidence: 99%