IDEAS home Printed from https://ideas.repec.org/a/eee/eecrev/v158y2023ics0014292123001538.html
   My bibliography  Save this article

Migration and resilience during a global crisis

Author

Listed:
  • Barker, Nathan
  • Davis, C. Austin
  • López-Peña, Paula
  • Mitchell, Harrison
  • Mobarak, Ahmed Mushfiq
  • Naguib, Karim
  • Reimão, Maira Emy
  • Shenoy, Ashish
  • Vernot, Corey

Abstract

This study explores the relationship between migration and household resilience during a global crisis that eliminated the option to migrate. We link prior data from four populations in Bangladesh and Nepal to new phone surveys conducted during the early months of the COVID-19 pandemic. While earnings fell universally, pandemic-induced declines were 14%–25% greater among previously migration-dependent households and urban migrant workers, with household remittance losses far exceeding official statistics. Heightened economic exposure during the pandemic erased prior gains achieved by transnational migrants and caused fourfold greater prevalence of food insecurity among domestic subsistence migrants. Economic distress spilled over onto non-migrants in high-migration villages and labor markets. We show that migration contributed to economic contagion independent of its role in disease transmission. Losing the option to migrate differentially increased the vulnerability of migration-dependent households during a crisis.

Suggested Citation

  • Barker, Nathan & Davis, C. Austin & López-Peña, Paula & Mitchell, Harrison & Mobarak, Ahmed Mushfiq & Naguib, Karim & Reimão, Maira Emy & Shenoy, Ashish & Vernot, Corey, 2023. "Migration and resilience during a global crisis," European Economic Review, Elsevier, vol. 158(C).
  • Handle: RePEc:eee:eecrev:v:158:y:2023:i:c:s0014292123001538
    DOI: 10.1016/j.euroecorev.2023.104524
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0014292123001538
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.euroecorev.2023.104524?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Angus Deaton, 2005. "Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 1-19, February.
    2. Fasani, Francesco & Mazza, Jacopo, 2020. "Immigrant Key Workers: Their Contribution to Europe's COVID-19 Response," IZA Policy Papers 155, Institute of Labor Economics (IZA).
    3. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants’ Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    4. Angus Deaton, 2005. "ERRATUM: Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 395-395, May.
    5. Caballero, María Esther & Cadena, Brian C. & Kovak, Brian K., 2023. "The international transmission of local economic shocks through migrant networks," Journal of International Economics, Elsevier, vol. 145(C).
    6. Joan Hamory & Marieke Kleemans & Nicholas Y Li & Edward Miguel, 2021. "Reevaluating Agricultural Productivity Gaps with Longitudinal Microdata," Journal of the European Economic Association, European Economic Association, vol. 19(3), pages 1522-1555.
    7. Lagakos, David & Marshall, Samuel & Mobarak, Ahmed Mushfiq & Vernot, Corey & Waugh, Michael E., 2020. "Migration costs and observational returns to migration in the developing world," Journal of Monetary Economics, Elsevier, vol. 113(C), pages 138-154.
    8. Michael A. Clemens & Hannah Postel, 2017. "Temporary work visas as US-Haiti development cooperation: a preliminary impact evaluation," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-18, December.
    9. Linguère Mously Mbaye & Alassane Drabo, 2017. "Natural Disasters and Poverty Reduction: Do Remittances Matter?," CESifo Economic Studies, CESifo Group, vol. 63(4), pages 481-499.
    10. Agha Ali Akram & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2017. "Effects of Emigration on Rural Labor Markets," NBER Working Papers 23929, National Bureau of Economic Research, Inc.
    11. Kaivan Munshi & Mark Rosenzweig, 2016. "Networks and Misallocation: Insurance, Migration, and the Rural-Urban Wage Gap," American Economic Review, American Economic Association, vol. 106(1), pages 46-98, January.
    12. Michele Valsecchi & Ruben Durante, 2020. "Internal migration and the spread of Covid-19," Working Papers w0276, New Economic School (NES).
    13. Egger, Dennis & Miguel, Edward & Warren, Shana S. & Shenoy, Ashish & Collins, Elliott & Karlan, Dean & Parkerson, Doug & Mobarak, A. Mushfiq & Fink, Günther & Udry, Christopher & Walker, Michael & Hau, 2021. "Falling living standards during the COVID-19 crisis: Quantitative evidence from nine developing countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(6), pages 1-1.
    14. 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.
    15. André Gröger & Yanos Zylberberg, 2016. "Internal Labor Migration as a Shock Coping Strategy: Evidence from a Typhoon," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 123-153, April.
    16. David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, June.
    17. Anna Josephson & Talip Kilic & Jeffrey D. Michler, 2021. "Socioeconomic impacts of COVID-19 in low-income countries," Nature Human Behaviour, Nature, vol. 5(5), pages 557-565, May.
    18. Jorge A. Alvarez, 2020. "The Agricultural Wage Gap: Evidence from Brazilian Micro-data," American Economic Journal: Macroeconomics, American Economic Association, vol. 12(1), pages 153-173, January.
    19. Melanie Morten, 2019. "Temporary Migration and Endogenous Risk Sharing in Village India," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 1-46.
    20. Daniel Garrote Sanchez & Nicolas Gomez Parra & Caglar Ozden & Bob Rijkers, 2020. "Which Jobs Are Most Vulnerable to COVID-19? What an Analysis of the European Union Reveals," World Bank Publications - Reports 33737, The World Bank Group.
    21. Borjas, George J. & Cassidy, Hugh, 2020. "The Adverse Effect of the COVID-19 Labor Market Shock on Immigrant Employment," IZA Discussion Papers 13277, Institute of Labor Economics (IZA).
    22. Theoharides, Caroline, 2020. "The unintended consequences of migration policy on origin-country labor market decisions," Journal of Development Economics, Elsevier, vol. 142(C).
    23. Clemens, Michael A., 2019. "Measuring the Spatial Misallocation of Labor: The Returns to India-Gulf Guest Work in a Natural Experiment," IZA Discussion Papers 12095, Institute of Labor Economics (IZA).
    24. Anubhab Gupta & Heng Zhu & Miki Khanh Doan & Aleksandr Michuda & Binoy Majumder, 2021. "Economic Impacts of the COVID−19 Lockdown in a Remittance‐Dependent Region," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 466-485, March.
    25. Andrea Cinque & Lennart Reiners, 2022. "Confined to Stay: Natural Disasters and Indonesia's Migration Ban," CESifo Working Paper Series 9837, CESifo.
    26. Gröger, André, 2021. "Easy come, easy go? Economic shocks, labor migration and the family left behind," Journal of International Economics, Elsevier, vol. 128(C).
    Full references (including those not matched with items on IDEAS)

    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. Selod, Harris & Shilpi, Forhad, 2021. "Rural-urban migration in developing countries: Lessons from the literature," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    2. Nathan Barker & Austin Davis & Paula López-Peña & Harrison Mitchell & Mushfiq Mobarak & Karim Naguib & Maira Emy Reimão & Ashish Shenoy & Corey Vernot, 2020. "Migration and the labour market impacts of COVID-19," WIDER Working Paper Series wp-2020-139, World Institute for Development Economic Research (UNU-WIDER).
    3. Lagakos, David & Marshall, Samuel & Mobarak, Ahmed Mushfiq & Vernot, Corey & Waugh, Michael E., 2020. "Migration costs and observational returns to migration in the developing world," Journal of Monetary Economics, Elsevier, vol. 113(C), pages 138-154.
    4. David Lagakos & Ahmed Mushfiq Mobarak & Michael E. Waugh, 2023. "The Welfare Effects of Encouraging Rural–Urban Migration," Econometrica, Econometric Society, vol. 91(3), pages 803-837, May.
    5. Tasso Adamopoulos & Loren Brandt & Chaoran Chen & Diego Restuccia & Xiaoyun Wei, 2022. "Land Security and Mobility Frictions," Working Papers tecipa-717, University of Toronto, Department of Economics.
    6. Mckenzie,David J., 2022. "Fears and Tears : Should More People Be Moving within and from Developing Countries, andWhat Stops This Movement ?," Policy Research Working Paper Series 10128, The World Bank.
    7. Qingen Gai & Naijia Guo & Bingjing Li & Qinghua Shi & Xiaodong Zhu, 2021. "Migration Costs, Sorting, and the Agricultural Productivity Gap," Working Papers tecipa-693, University of Toronto, Department of Economics.
    8. Imbert, Clément & Papp, John, 2020. "Costs and benefits of rural-urban migration: Evidence from India," Journal of Development Economics, Elsevier, vol. 146(C).
    9. Kirchberger, Martina, 2021. "Measuring internal migration," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    10. Jules Gazeaud & Eric Mvukiyehe & Olivier Sterck, 2023. "Cash Transfers and Migration: Theory and Evidence from a Randomized Controlled Trial," The Review of Economics and Statistics, MIT Press, vol. 105(1), pages 143-157, January.
    11. De Weerdt,Joachim & Christiaensen,Luc & Kanbur,Ravi, 2021. "When Distance Drives Destination, Towns Can Stimulate Development," Policy Research Working Paper Series 9622, The World Bank.
    12. Tushar Bharati & Wina Yoman, 2021. "Internal Migration and Labor Market Outcomes in Indonesia," Economics Discussion / Working Papers 21-05, The University of Western Australia, Department of Economics.
    13. De Magalhães, Leandro & Santaeulàlia-Llopis, Raül, 2018. "The consumption, income, and wealth of the poorest: An empirical analysis of economic inequality in rural and urban Sub-Saharan Africa for macroeconomists," Journal of Development Economics, Elsevier, vol. 134(C), pages 350-371.
    14. Gröger, André, 2021. "Easy come, easy go? Economic shocks, labor migration and the family left behind," Journal of International Economics, Elsevier, vol. 128(C).
    15. Costas Meghir & Ahmed Mushfiq Mobarak & Ahmed Corina Mommaerts & Ahmed Melanie Morten, 2019. "Migration and Informal Insurance," Cowles Foundation Discussion Papers 2185R, Cowles Foundation for Research in Economics, Yale University, revised Aug 2020.
    16. Michael A. Clemens & Timothy N. Ogden, 2020. "Migration and household finances: How a different framing can improve thinking about migration," Development Policy Review, Overseas Development Institute, vol. 38(1), pages 3-27, January.
    17. Khandker Wahedur Rahman, 2023. "International migration and the religious schooling of children in the home country: evidence from Bangladesh," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1963-2005, July.
    18. David Lagakos, 2020. "Urban-Rural Gaps in the Developing World: Does Internal Migration Offer Opportunities?," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 174-192, Summer.
    19. Simiao Chen & Zhangfeng Jin & Klaus Prettner, 2023. "Can I live with you after I retire? Retirement, old age support and internal migration in a developing country," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(3), pages 964-988, August.
    20. Cai, Shu, 2020. "Migration under liquidity constraints: Evidence from randomized credit access in China," Journal of Development Economics, Elsevier, vol. 142(C).

    More about this item

    Keywords

    Migration; Risk management; South Asia; COVID-19;
    All these keywords.

    JEL classification:

    • G52 - Financial Economics - - Household Finance - - - Insurance
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    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:eee:eecrev:v:158:y:2023:i:c:s0014292123001538. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eer .

    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.