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Costs and Benefits of Seasonal Migration : Evidence from India

Author

Listed:
  • Imbert, Clément

    (University of Warwick, Department of Economics)

  • Papp, John

    (R.I.C.E)

Abstract

This paper provides new evidence on rural-to-urban migration decisions in developing countries. Using original survey data from rural India, we show that employment provision on local public works significantly reduces seasonal migration. Workers who choose to participate in the program forgo much higher earnings outside of the village. Structural estimates imply that the utility cost of one day away may be as high as 60% of migration earnings. Up to half of this cost can be explained by higher living costs and income risk. The other half likely reflects high non-monetary costs from living and working in the city.

Suggested Citation

  • Imbert, Clément & Papp, John, 2018. "Costs and Benefits of Seasonal Migration : Evidence from India," The Warwick Economics Research Paper Series (TWERPS) 1161, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1161
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2018/twerp_1161_imbert.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gröger, André, 2021. "Easy come, easy go? Economic shocks, labor migration and the family left behind," Journal of International Economics, Elsevier, vol. 128(C).
    2. Maggio, Giuseppe & Veljanoska, Stefanija, 2021. "Would you rather stay? Agricultural Subsidies and Household Migration in Malawi," 2021 Annual Meeting, August 1-3, Austin, Texas 314041, Agricultural and Applied Economics Association.
    3. S. Irudaya Rajan & P. Sivakumar & Aditya Srinivasan, 2020. "The COVID-19 Pandemic and Internal Labour Migration in India: A ‘Crisis of Mobility’," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(4), pages 1021-1039, December.
    4. Merfeld, Joshua D., 2019. "Spatially heterogeneous effects of a public works program," Journal of Development Economics, Elsevier, vol. 136(C), pages 151-167.
    5. 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.

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    More about this item

    Keywords

    Internal Migration ; Workfare Programs ; India ; Urban ; Rural;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • 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
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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