2020
DOI: 10.1016/j.jmoneco.2020.03.013
|View full text |Cite
|
Sign up to set email alerts
|

Migration costs and observational returns to migration in the developing world

Abstract: Recent studies find that observational returns to rural-urban migration are near zero in three developing countries. We revisit this result using panel tracking surveys from six countries, finding higher returns on average. We then interpret these returns in a multi-region Roy model with heterogeneity in migration costs. In the model, the observational return to migration confounds the urban premium and the individual benefits of migrants, and is not directly informative about the welfare gain from lowering mi… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
1
1
1
1

Citation Types

0
12
0

Year Published

2020
2020
2024
2024

Publication Types

Select...
6
2
2

Relationship

2
8

Authors

Journals

citations
Cited by 50 publications
(12 citation statements)
references
References 38 publications
0
12
0
Order By: Relevance
“…For the remaining 48 countries, we draw on country-specific censuses, household, or labor force surveys, including 19 surveys conducted as part of the World Bank's Living Standards Measurement Studies (LSMS). 4 When multiple years of appropriate data are available, we choose the year closest to 2005. Most of our data are within a few years of 2005; exact years, data sources, and sample sizes for all countries are given in online Appendix Table C.1.…”
Section: A Data Sourcesmentioning
confidence: 99%
“…For the remaining 48 countries, we draw on country-specific censuses, household, or labor force surveys, including 19 surveys conducted as part of the World Bank's Living Standards Measurement Studies (LSMS). 4 When multiple years of appropriate data are available, we choose the year closest to 2005. Most of our data are within a few years of 2005; exact years, data sources, and sample sizes for all countries are given in online Appendix Table C.1.…”
Section: A Data Sourcesmentioning
confidence: 99%
“…Longitudinal data for a much shorter time span from six countries in Africa and Asia (China 2010, Ghana 2009-2013, Malawi 2010, South Africa 2008-2017, and Tanzania 2008-2012 show that, for movers, estimated returns to migration are as high as 20-30%. 1 Heterogeneity in migration costs is important, as returns to migration estimated from regressions with individual fixed effects for migrants from regions with above-and below-average migration levels within the same country differ significantly for three of the six countries (Lagakos et al 2020). Policies that affect migration costs could thus have significant impacts on structural transformation.…”
Section: How Large Are Intersectoral Wage Gaps and Why Do They Persist?mentioning
confidence: 99%
“…In order to discipline the model to predict a relatively low share of workers in non-agriculture given the large wage differences, we need a substantial cost to enter that sector. This cost parameter relates to the literature on the agricultural productivity gap (see for example Gollin et al (2014); Lagakos et al (2020); Young (2014); Hamory et al (2020)). My estimate of a large friction is broadly in line with this literature.…”
Section: 4mentioning
confidence: 99%