Diaspora transferts et signal de richesse

This paper shows that social interactions can induce families of migrants to care about hierarchical social status because it serves as a signal device of non-observable income. Hence , a concern for social status induces theses families to engage in conspicuous consumption in order to signal their relative wealth. Consequently, the model shows a positive correlation between disposable income and consumption of the positional good . As a corollary, families who receive large remittances tendto invest more in the signaling game of wealth.