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This result stems from the fact that ceteris paribus, migrants with high migration prospects are less likely to return to their origin country.
Two remittance-savings portfolios are possible, (0,s∗) and (r∗,0), where: under "high" migration prospects: (0,s∗) with U 0,s∗)>U r∗,0) and s∗ such that u 1 ′ δ u 2 ′ = τ, under "low" migration prospects: (r∗,0) with U r∗,0)>U 0,s∗), and r∗ such that u 1 ′ δ u 2 ′ = E R ′ r ∗.
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For a given level of D R, a migrant with higher migration prospects faces a lower expected marginal return to remittances.
Figure 1 shows that the rates of low skilled migration are always lower than the brain drain confirming that human capital formation is positively associated with higher migration prospects.
First, the higher the migration prospects (i.e. expected wage gain from migration), the lower the incentive to remit and the higher the incentive to save.
If ∂ 2 c ~ 2 ∂ r 2 > 0, then the optimal remittance/saving portfolio is never diversified: "high" and "safe" migration prospects: (0,s∗) with U 0,s∗)>U r∗,0) and s∗ such that u 1 ′ δ u 2 ′ = τ, "low" and "risky" migration prospects: (r∗,0) with U r∗,0)>U 0,s∗) and r∗ such that u 1 ′ δ u 2 ′ = ∂ c ~ 2 ∂r | r ∗.
Plausible reasons mentioned by the focus group discussion participants were high migration post Aila, long-term inundation, and limited income prospects.
Rudd said the "controlling migration fund" would be designed specifically to ease the pressure on public services in areas of high migration.
Even those - such as Trevor Phillips - who argued for stronger restrictions on future migration did so while nodding heavily to the gains from high migration.
Results present strong evidence of heterogeneous effects of income gains on migration prospects depending on distance.
This finding could result from an additional positive effect of origin country GDP per capita on migration prospects.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com