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The effect of income shocks on migration: evidence from rural Vietnam

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  • Cuong Viet Nguyen

Abstract

In this study, we aim to estimate the causal effect of income shocks on migration in rural Vietnam. We use rainfall extremes as an exogenous source for income shocks. We find that high rainfall extremes increase income growth of households, while low rainfall extremes reduce their income growth. Using these rainfall extremes as the instrumental variables for income shocks, we find that negative income shocks encourage the migration. Experiencing a decrease in per capita income increases the probability of migration of rural people by 0.06.

Suggested Citation

  • Cuong Viet Nguyen, 2020. "The effect of income shocks on migration: evidence from rural Vietnam," Applied Economics Letters, Taylor & Francis Journals, vol. 27(18), pages 1509-1514, October.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:18:p:1509-1514
    DOI: 10.1080/13504851.2019.1693015
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    Cited by:

    1. Anh Thu Quang Pham & Pundarik Mukhopadhaya & Ha Vu, 2021. "Estimating poverty and vulnerability to monetary and non-monetary poverty: the case of Vietnam," Empirical Economics, Springer, vol. 61(6), pages 3125-3177, December.

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