Where Do Migrants Go?
In this paper, we study migration decisions taken by risk-averse households. Aggregate data from the regions of Southern Italy are used to test whether risk is a significant determinant of the decision to migrate abroad or inside the country. This indeed appears to be the case for both foreign and domestic migrations, after controlling for unemployment and wage differentials and other plausible control variables. We interpret our results as evidence that, whereas financial markets are absent or malfunctioning, migration provides a shelter against uncertain income prospects. Copyright 1999 by Royal Economic Society.
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Volume (Year): 51 (1999)
Issue (Month): 4 (October)
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