1. Can the Theory of Motivation Explain Migration Decisions? Natálie Reichlová Charles University in Prague

2. Theoretical background: Maslow‘s motivational theory Physiological needs –Food, beverages, vitamins, salt, sugar… Safety needs –Stability, preference for familiar, known… Social needs –Longing for family, friends, coleagues, nation… Esteem needs –Respect, appreciation, usefulness, freedom… Self-actualization –Apply talents and geniuses

3. Description of the model ENVIRONMENT & INITIAL SETTINGS 3 regions (grids), 20 x 20 cells convoluted into torus shape wage level 399 agents 133 agents in each region in the initial period

4. BEHAVIOUR OF AGENTS Agents maximize utility Agents receive wage paid in the region they are present in Maximized function depends on wage received Agents decide one after another ABOVE THRESHOLD WAGE physiological & social & safety needs BELOW THRESHOLD WAGE physiological needs

5. Model Maximized utility function is:    0,1  … parameter that expresses sensitivity to social variable    0,1  … sensitivity to native country variable  j ………… number of periods spent abroad T…………. threshold below which agents are concerned only in wage

6.  …determines speed of establishment and abandonment of social ties

7. Simple wage maximization model Agents maximize only wages Wage parameters: W A = 250 W B = 500 W C = 750 Initial wages: w A = 1.865 w B = 3.731 w C = 5.597 Stable state: Wages in stable state: w A = w B = w C = 3.731 WAGES EQUALIZED WITHIN FIRST PERIOD

8. Model with safety & social needs Wage parameters: W A = 250 W B = 500 W C = 750 Initial wages: w A = 1.865 w B = 3.731 w C = 5.597 Sensitivity to safety needs: α = 0.3 Sensitivity to social needs: β = 0.3 Speed of creation of social ties: σ = 0.1 Physiological threshold: T = 0 Postponement (# of periods): P = 10 Wages in stable state: w A = 2.155 w B = 3.731 w C = 4.934

9. Wage parameters: W A = 250 W B = 500 W C = 750 Initial wages: w A = 1.865 w B = 3.731 w C = 5.597 Sensitivity to safety needs: α = 0.3 Sensitivity to social needs: β = 0.3 Speed of creation of social ties: σ = 0.1 Physiological threshold: T = 3.5 Postponement (# of periods): P = 10 Wages in stable state: w A = 3.521 w B = 3.731 w C = 3.807 T > 0  OUTFLOW OF AGENTS FROM COUNTRY WITH WAGE BELOW THRESHOLD  LOWER WAGE GAPS

10. Conclusions I.Wages in all regions either exceed minimal physiological threshold or are equalized in stable state. stable state : w i > T or w A = w B = w C REAL WORLD: People should migrate from countries where wages are below physiological threshold.

11. II.If agents include safety needs into decision making then wages may remain unequalised in stable state. for  > 0 stable state may occur for w A  w B  w C REAL WORLD: If people appreciate living in home country compared to foreign country and their income is higher then physiological minimum then migration flows might stop even if the wage differences between states (regions) exist.

12. III.If agents include social needs into decision making then wages may remain unequalised in stable state. for  > 0 stable state may occur for w A  w B  w C REAL WORLD: If people appreciate proximity of people they well know and their income is higher then physiological minimum then migration flows might stop even if the wage differences between states (regions) exist.

13. IV.The more important are social and safety needs, the lower convergence of wage levels due to migration occurs. REAL WORLD: Mobility may be different between regions with equal wage gap due to different cultural settings. Social security benefits above physiological threshold decrease willingness to move. Wage differentials may persist even if no barriers to migration exist.

14. END OF PRESENTATION