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Wealth Heterogeneity and the Income Elasticity of Migration

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  • Samuel Bazzi

    () (Boston University & BREAD)

Abstract

How do income shocks affect international migration flows from poor countries? Income growth not only increases the opportunity cost of migration but also eases liquidity constraints. I develop a method to separate these countervailing individual effects and identify the overall income elasticity of migration. Using new administrative and census data from Indonesia, I find that positive agri- cultural income shocks increase labor emigration flows, particularly in villages with relatively more small landholders. However, in the most developed rural areas, persistent income shocks reduce emigration. Overall, the findings highlight the important role of wealth heterogeneity in shaping migration flows as incomes rise.

Suggested Citation

  • Samuel Bazzi, 2016. "Wealth Heterogeneity and the Income Elasticity of Migration," Boston University - Department of Economics - Working Papers Series wp2016-003, Boston University - Department of Economics.
  • Handle: RePEc:bos:wpaper:wp2016-003
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    Cited by:

    1. Mariapia, Mendola, 2018. "Global evidence on prospective migrants from developing countries," Working Papers 387, University of Milano-Bicocca, Department of Economics, revised 19 Sep 2018.
    2. repec:eee:deveco:v:135:y:2018:i:c:p:488-503 is not listed on IDEAS
    3. Rowena Gray & Gaia Narciso & Gaspare Tortorici, 2017. "Globalization, Agricultural Markets and Mass Migration," CReAM Discussion Paper Series 1713, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    4. repec:spr:izamig:v:9:y:2019:i:1:d:10.1186_s40176-018-0136-4 is not listed on IDEAS
    5. Chen, Joyce & Kosec, Katrina & Mueller, Valerie, 2019. "Moving to despair? Migration and well-being in Pakistan," World Development, Elsevier, vol. 113(C), pages 186-203.
    6. Chiara Falco & Marzio Galeotti & Alessandro Olper, 2018. "Climate change and Migration: Is Agriculture the Main Channel?," IEFE Working Papers 100, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    7. Joan Hamory Hicks & Marieke Kleemans & Nicholas Y. Li & Edward Miguel, 2017. "Reevaluating Agricultural Productivity Gaps with Longitudinal Microdata," NBER Working Papers 23253, National Bureau of Economic Research, Inc.
    8. Eva-Maria Egger & Julie Litchfield, 2018. "Following in their footsteps: an analysis of the impact of successive migration on rural household welfare in Ghana," WIDER Working Paper Series 022, World Institute for Development Economic Research (UNU-WIDER).
    9. 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.

    More about this item

    Keywords

    International Migration; Wealth Heterogeneity; Income Elasticity; Liquidity Constraints;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • 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
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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