This paper considers migration as an investment decision. It develops a continuoustime
stochastic model to explain the optimal timing of migration, in the presence of
ongoing uncertainty over wage differentials. The results show that individuals prefer
to wait before migrating, even if the present value of the wage differential is positive,
because of the uncertainty and the sunk costs associated with migration. An increased
degree of risk aversion discourages migration, and interacts with the other variables
and parameters affecting migration by exacerbating their effects
