Extending the human capital model of migration: The role of risk, place, and social capital in the migration decision

Abstract

Abstract Migration is both an economic and an emotional decision; it breaks ties and requires a fundamental commitment to changed workplaces, new social networks and relationships, and new residential environments. Although economic returns matter in the decision to move, it is clear from survey studies that many moves are more complex than those built around market incentives alone. To explore the decision‐making underlying mobility and to evaluate why some decisions are deferred, we explore the ideas of prospect theory, endowment effects, and social capital as new ways to understand the decision‐making process about migrating. Often, the focus on migration passes over the associated and important question of when and why individuals and families do not move. By considering the intersecting roles of risk aversion, place attachment, and social capital, we can use these ideas to model the decision to move and show that both endowment and social capital play important roles in the migratory decision. Our findings extend previous research by incorporating both endowment and social capital in the models of migration.