Remittances and incentive to migrate: An epidemic approach of migration

Abstract : This paper focuses on feedback mechanisms of remittances on the size of the migrant population. We argue that low remittances contribute to relax recipients’ credit constraints and foster further emigration. On the other hand, high remittances may deter migration if they make further emigration unnecessary. Thus, remittances can be considered as a contaminating factor in an epidemic model of migration. This model allows us to characterize a rich set of situations in order to appraise the impact of different policies on the total number of migrants. For instance, we show the mechanisms through which a policy aiming at making migrants successful in the host country may finally lower migration.