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Cash Transfers and Migration: Theory and Evidence from a Randomized Controlled Trial

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  • Jules Gazeaud
  • Eric Mvukiyehe
  • Olivier Sterck

Abstract

Will the fast expansion of cash-based programming in developing countries increase international migration? Theoretically, cash transfers may favor international migration by relaxing liquidity, credit, and risk constraints. But transfers, especially those conditional upon staying at home, may also increase the opportunity cost of migrating abroad. This paper evaluates the impact of a cash-for-work program on migration. Randomly selected households in Comoros were offered up to US$320 in cash in exchange for their participation in public works projects. We find that the program increased migration to Mayotte – the neighboring and richerFrenchIsland–by38percent,from7.8%to10.8%. Theincreaseinmigration isexplainedbythealleviationofliquidityandriskconstraints,andbythefactthat theprogramdidnotincreasetheopportunitycostofmigrationforlikelymigrants.

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  • Jules Gazeaud & Eric Mvukiyehe & Olivier Sterck, 2019. "Cash Transfers and Migration: Theory and Evidence from a Randomized Controlled Trial," CSAE Working Paper Series 2019-16, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2019-16
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    Cited by:

    1. Aanchal Bagga & Marcus Holmlund & Nausheen Khan & Subha Mani & Eric Mvukiyehe & Patrick Premand, 2023. "Do Public Works Programs Have Sustained Impacts? A Review of Experimental Studies from LMICs," Fordham Economics Discussion Paper Series dp2023-07er:dp2023-07, Fordham University, Department of Economics.
    2. Bah, Tijan L. & Batista, Catia & Gubert, Flore & McKenzie, David, 2023. "Can information and alternatives to irregular migration reduce “backway” migration from The Gambia?," Journal of Development Economics, Elsevier, vol. 165(C).
    3. Michael A. Clemens & Mariapia Mendola, 2020. "Migration from Developing Countries: Selection, Income Elasticity, and Simpson’s Paradox," Working Papers 539, Center for Global Development.
    4. Clemens, Michael A., 2022. "Do Cash Transfers Deter Migration?," IZA Policy Papers 191, Institute of Labor Economics (IZA).
    5. Jules Gazeaud & Victor Stephane, 2023. "Productive Workfare? Evidence from Ethiopia's Productive Safety Net Program," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 265-290, January.
    6. Gazeaud, Jules & Khan, Nausheen & Mvukiyehe, Eric & Sterck, Olivier, 2023. "With or without him? Experimental evidence on cash grants and gender-sensitive trainings in Tunisia," Journal of Development Economics, Elsevier, vol. 165(C).
    7. Marina-Selini Katsaiti & Maroula Khraiche, 2023. "Does access to credit alter migration intentions?," Empirical Economics, Springer, vol. 65(4), pages 1823-1854, October.

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    More about this item

    Keywords

    Migration Cash Transfers Financial Constraints Risk-aversion;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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