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and UCL/LSE for helpful comments. Anita Bhide provided excellent research assistance. Part of this work was completed while Morten was a visiting scholar at the Federal Reserve Bank of Minneapolis and their hospitality is greatly acknowledged. This paper previously circulated under the title "Migration, roads and labor market integration: Evidence from a planned capital city". Any errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Business-as-usual climate-change forecasts point to sharp temperature rises and agriculture yield losses in Brazil. We study the impact of these changes on internal migration and population distribution. We employ a spatial equilibrium model in which the climate shapes workers' locational choices through the usual amenity-value channel and the novel indirect channel via agriculture wages. Our simulations reveal that migration rates are 5.9% higher, and that half million more people migrate inter regionally under future climate conditions. Furthermore, climate change will likely exacerbate the country's regional inequalities, as the most developed regions gain population and welfare while the least developed regions lose.

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