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Risk attitudes and migration

Author

Listed:
  • Akgüç, Mehtap
  • Liu, Xingfei
  • Tani, Massimiliano
  • Zimmermann, Klaus F.

Abstract

To contribute to a scarce literature, in particular for developing and emerging economies, we study the nature of measured risk attitudes and their consequences for migration. We also investigate whether substantial changes in the risk environment influence risk tolerance. Using the 2009 RUMiC data for China, we find that rural–urban migrants and their family members are substantially less risk-averse than stayers. We further provide suggestive evidence that individual risk attitudes are unaffected by substantial changes in the environment and that risk tolerance is correlated across generations.

Suggested Citation

  • Akgüç, Mehtap & Liu, Xingfei & Tani, Massimiliano & Zimmermann, Klaus F., 2016. "Risk attitudes and migration," China Economic Review, Elsevier, vol. 37(C), pages 166-176.
  • Handle: RePEc:eee:chieco:v:37:y:2016:i:c:p:166-176
    DOI: 10.1016/j.chieco.2015.12.004
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    More about this item

    Keywords

    Risk aversion; Risk attitudes; Migration; China;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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