RETURN AND DYNAMICS - THE PATH OF LABOR MIGRATION WHEN WORKERS DIFFERIN THEIR SKILLS AND INFORMATION IS ASYMMETRIC

An implementation of the theory of labor migration under asymmetric in formation shows that return migration arises from the reinstatement of informational symmetry which induces low-skill workers, who are no lo nger pooled with high-skill workers, to return. When workers in an occ upation constitute more than two skill levels, say four (without loss of generality), the following patterns emerge: Migration is sequential , that is, it proceeds in waves. Each wave breaks into workers who ret urn and workers who stay; within waves the returning migrants are the low-skill workers. The average skill level of migrants is rising in th e order of their wave.