IDEAS home Printed from https://ideas.repec.org/a/bla/deveco/v53y2015i1p1-26.html
   My bibliography  Save this article

Seasonal Migration and Microcredit During Agricultural Lean Seasons: Evidence from Northwest Bangladesh

Author

Abstract

type="main"> This paper investigates the interlinkage between microcredit and temporary seasonal migration, an issue which has been given little attention in the standard rural–urban migration literature. Seasonal migration due to agricultural downturns is a common phenomenon in developing countries. Using primary data from a cross-sectional household survey of the northwest part of Bangladesh, this paper quantifies the factors that influence such migration decisions. Our results suggest that people with prior access to microcredit are more likely to migrate during an agricultural lean season. Furthermore, we find evidence of a negative selection effect between microcredit and seasonal migration, conditional on an individual's village of residence and observed characteristics. Our results have numerous potential policy implications, including the design of typical microcredit schemes for developing countries.

Suggested Citation

  • Abu S. Shonchoy, 2015. "Seasonal Migration and Microcredit During Agricultural Lean Seasons: Evidence from Northwest Bangladesh," The Developing Economies, Institute of Developing Economies, vol. 53(1), pages 1-26, March.
    • Handle: RePEc:bla:deveco:v:53:y:2015:i:1:p:1-26
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/deve.12063
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gharad Bryan & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2014. "Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh," Econometrica, Econometric Society, vol. 82(5), pages 1671-1748, September.
    2. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    3. Khandker, Shahidur R., 2012. "Seasonality of income and poverty in Bangladesh," Journal of Development Economics, Elsevier, vol. 97(2), pages 244-256.
    4. Daniele Fabbri & Chiara Monfardini, 2008. "Style of practice and assortative mating: a recursive probit analysis of Caesarean section scheduling in Italy," Applied Economics, Taylor & Francis Journals, vol. 40(11), pages 1411-1423.
    5. Randall Kuhn, 2001. "The Impact of Nuclear Family and Individual Migration on The Elderly in Rural Bangladesh A Qualitative Analysis," Working Papers DRU-2577, RAND Corporation.
    6. Signe-Mary McKernan, 2002. "The Impact Of Microcredit Programs On Self-Employment Profits: Do Noncredit Program Aspects Matter?," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 93-115, February.
    7. Jones, A., 2007. "Applied Econometrics for Health Economists: A Practical Guide," Monographs, Office of Health Economics, number 000262.
    8. repec:pri:rpdevs:morduch_microfinance_poor is not listed on IDEAS
    9. Randall Kuhn, 2001. "The Impact of Nuclear Family and Individual Migration on the Elderly in Rural Bangladesh: A Qualitative Analysis," Working Papers 01-11, RAND Corporation.
    10. Jonathan Morduch, 1999. "The Microfinance Promise," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, December.
    11. Mark R. Rosenzweig & Kenneth I. Wolpin, 1985. "Specific Experience, Household Structure, and Intergenerational Transfers: Farm Family Land and Labor Arrangements in Developing Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(Supplemen), pages 961-987.
    12. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
    13. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
    14. Mark Pin & Shahidur Khandker & Signe-Mary Mckernan & M. Latif, 1999. "Credit programs for the poor and reproductive behavior in low-income countries: Are the reported causal relationships the result of heterogeneity bias?," Demography, Springer;Population Association of America (PAA), vol. 36(1), pages 1-21, February.
    15. Shahidur R. Khandker, 2005. "Microfinance and Poverty: Evidence Using Panel Data from Bangladesh," The World Bank Economic Review, World Bank, vol. 19(2), pages 263-286.
    16. Jonathan Morduch, 1998. "Does Microfinance Really Help the Poor? New Evidence from Flagship Programs in Bangladesh," Working Papers 198, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    17. Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 549-599.
    18. M. M. Pitt & S. R. Khandker, 2002. "Credit Programmes for the Poor and Seasonality in Rural Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 39(2), pages 1-24.
    19. Shahidur R. Khandker & M. A. Baqui Khalily & Hussain A. Samad, 2012. "Seasonal Hunger and Its Mitigation in North-West Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 48(12), pages 1750-1764, December.
    20. Mendola, Mariapia, 2008. "Migration and technological change in rural households: Complements or substitutes?," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 150-175, February.
    21. Ben Rogaly & Daniel Coppard & Abdur Safique & Kumar Rana & Amrita Sengupta & Jhuma Biswas, 2002. "Seasonal Migration and Welfare/Illfare in Eastern India: A Social Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 38(5), pages 89-114.
    22. Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
    23. Shahidur R. Khandker & Wahiduddin Mahmud, 2012. "Seasonal Hunger and Public Policies : Evidence from Northwest Bangladesh," World Bank Publications - Books, The World Bank Group, number 9373, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael A. Clemens & Hannah M. Postel, 2018. "Deterring Emigration with Foreign Aid: An Overview of Evidence from Low‐Income Countries," Population and Development Review, The Population Council, Inc., vol. 44(4), pages 667-693, December.
    2. Chan Mono Oum & Gazi M. Hassan & Mark J. Holmes, 2022. "Impact of Microcredit on Labour Migration Decisions: Evidence from a Cambodian Household Survey," Working Papers in Economics 22/01, University of Waikato.
    3. Emran, M. Shahe & Shilpi, Forhad, 2021. "Microfinance, Moneylenders, and Economic Shocks: An Assessment of the Bangladesh Experience," MPRA Paper 111159, University Library of Munich, Germany.
    4. Shonchoy, Abu S. & Kurosaki, Takashi, 2014. "Impact of seasonality-adjusted flexible microcredit on repayment and food consumption : experimental evidence from rural Bangladesh," IDE Discussion Papers 460, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Bangkim Biswas & Bishawjit Mallick, 2021. "Livelihood diversification as key to long-term non-migration: evidence from coastal Bangladesh," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 8924-8948, June.
    6. Ghebru, Hosaena & Amare, Mulubrhan & Mavrotas, George & Ogunniyi, Adebayo, 2018. "Role of land access in youth migration and youth employment decisions: Empirical evidence from rural Nigeria," NSSP working papers 58, International Food Policy Research Institute (IFPRI).
    7. Kurosaki, Takashi, 2012. "Urban Transportation Infrastructure and Poverty Reduction: Delhi Metro's Impact on the Cycle Rickshaw Rental Market," PRIMCED Discussion Paper Series 24, Institute of Economic Research, Hitotsubashi University.
    8. Michael Clemens and Timothy N. Ogden, 2014. "Migration as a Strategy for Household Finance: A Research Agenda on Remittances, Payments, and Development- Working Paper 354," Working Papers 354, Center for Global Development.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shonchoy, Abu S., 2011. "Seasonal migration and micro-credit in the lean period : evidence from northwest Bangladesh," IDE Discussion Papers 294, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Maren Duvendack & Richard Palmer-Jones, 2012. "High Noon for Microfinance Impact Evaluations: Re-investigating the Evidence from Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 48(12), pages 1864-1880, December.
    3. Asadul Islam & Debayan Pakrashi, 2014. "The Microcredit Puzzle: Labour Supply Behaviour of Rural Households in Bangladesh," Monash Economics Working Papers 24-14, Monash University, Department of Economics.
    4. Sengsourivong, Kongpasa & Mieno, Fumiharu, 2014. "Impacts of Savings and Credit Union Programs on Household Welfare in Laos: Case Study of the Vientiane Vicinity during the mid-2000s," PRIMCED Discussion Paper Series 55, Institute of Economic Research, Hitotsubashi University.
    5. Nidhiya Menon, 2006. "Long-term benefits of membership in microfinance programmes," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(4), pages 571-594.
    6. Shonchoy, Abu S. & Kurosaki, Takashi, 2014. "Impact of seasonality-adjusted flexible microcredit on repayment and food consumption : experimental evidence from rural Bangladesh," IDE Discussion Papers 460, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Duvendack, Maren & Palmer-Jones, Richard, 2011. "The microfinance of reproduction and the reproduction of microfinance: understanding the connections between microfinance, empowerment, contraception and fertility in Bangladesh in the 1990s," MPRA Paper 32384, University Library of Munich, Germany.
    8. Sefa K. Awaworyi, 2014. "The Impact of Microfinance Interventions: A Meta-analysis," Monash Economics Working Papers 03-14, Monash University, Department of Economics.
    9. Akotey, Joseph Oscar & Adjasi, Charles K.D., 2016. "Does Microcredit Increase Household Welfare in the Absence of Microinsurance?," World Development, Elsevier, vol. 77(C), pages 380-394.
    10. Hisaki KONO & Kazushi TAKAHASHI, 2010. "Microfinance Revolution: Its Effects, Innovations, And Challenges," The Developing Economies, Institute of Developing Economies, vol. 48(1), pages 15-73, March.
    11. Phim Runsinarith, 2014. "The impacts of microcredit on poverty reduction: evidence from Cambodian rural villages," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(2), pages 121-150, December.
    12. Islam, Asadul & Nguyen, Chau & Smyth, Russell, 2015. "Does microfinance change informal lending in village economies? Evidence from Bangladesh," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 141-156.
    13. Eva-Maria Egger & Julie Litchfield, 2019. "Following in their footsteps: an analysis of the impact of successive migration on rural household welfare in Ghana," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 9(1), pages 1-22, December.
    14. Gunhild Berg, 2010. "Evaluating The Impacts Of Microsaving: The Case Of Sewa Bank In India," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(1), pages 75-96, March.
    15. Anzoategui, Diego & Demirgüç-Kunt, Asli & Martínez Pería, María Soledad, 2014. "Remittances and Financial Inclusion: Evidence from El Salvador," World Development, Elsevier, vol. 54(C), pages 338-349.
    16. Basu, Karna & Wong, Maisy, 2015. "Evaluating seasonal food storage and credit programs in east Indonesia," Journal of Development Economics, Elsevier, vol. 115(C), pages 200-216.
    17. Khandker, Shahidur R. & Khalily, M. A. Baqui & Samad, Hussain A., 2010. "Seasonal and extreme poverty in Bangladesh : evaluating an ultra-poor microfinance project," Policy Research Working Paper Series 5331, The World Bank.
    18. Ranjula Bali Swain & Supriya Garikipati, 2019. "Microfinance in the Global South: Examining Evidence on Social Efficacy," Working Papers 201908, University of Liverpool, Department of Economics.
    19. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos, 2019. "20 years of research in microfinance: An information management approach," International Journal of Information Management, Elsevier, vol. 47(C), pages 183-197.
    20. Asadul Islam & Chandana Maitra & Debayan Pakrashi & Russell Smyth, 2016. "Microcredit Programme Participation and Household Food Security in Rural Bangladesh," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 448-470, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:deveco:v:53:y:2015:i:1:p:1-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/idegvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.