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Environmental Migration and Labor Markets in Nepal

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  • Jean-François Maystadt
  • Valerie Mueller
  • Ashwini Sebastian

Abstract

While an emerging literature cites weather shocks as migration determinants, scant evidence exists on how such migration affects the markets of receiving communities in developing countries. We address this knowledge gap by investigating the impact of weather-driven internal migration on labor markets in Nepal. An increase of 1 percentage point in net migration reduces wages in the formal sector by 5.7%. A similar change in migration augments unemployment by 1 percentage point. The unskilled bear greater consequences. Understanding entrepreneurial constraints and drivers of labor market exits will inform pathways to resilience.

Suggested Citation

  • Jean-François Maystadt & Valerie Mueller & Ashwini Sebastian, 2016. "Environmental Migration and Labor Markets in Nepal," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 417-452.
  • Handle: RePEc:ucp:jaerec:doi:10.1086/684579
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    1. repec:eee:wdevel:v:99:y:2017:i:c:p:230-252 is not listed on IDEAS
    2. Strobl, Eric & Walsh, Frank, 2016. "Monopsony, minimum wages and migration," Labour Economics, Elsevier, vol. 42(C), pages 221-237.
    3. Sharma, Govinda & Pandit, Ram & White, Ben & Polyakov, Maksym, 2015. "The Income Diversification Strategies of Smallholder Coffee Producers in Nepal," 2015 Conference (59th), February 10-13, 2015, Rotorua, New Zealand 202580, Australian Agricultural and Resource Economics Society.
    4. Takeshima, Hiroyuki, 2015. "Drivers of growth in agricultural returns to scale: The hiring in of tractor services in the Terai of Nepal:," IFPRI discussion papers 1476, International Food Policy Research Institute (IFPRI).
    5. Rojas Valdes, Ruben I. & Lin Lawell, C.-Y. Cynthia & Taylor, J. Edward, 2017. "The Dynamic Migration Game: A Structural Econometric Model and Application to Rural Mexico," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259184, Agricultural and Applied Economics Association.
    6. Takeshima, Hiroyuki & Adhikari, Rajendra Prasad & Poudel, Mahendra Nath & Kumar, Anjani, 2015. "Farm household typologies and mechanization patterns in Nepal Terai: Descriptive analysis of the Nepal living standards survey:," IFPRI discussion papers 1488, International Food Policy Research Institute (IFPRI).

    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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

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