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Cash Transfers and Migration: Theory and Evidence from a Randomized Controlled Trial

Author

Listed:
  • Jules Gazeaud

    (NOVA - Universidade Nova de Lisboa = NOVA University Lisbon)

  • Eric Mvukiyehe

  • Olivier Sterck

Abstract

Will the fast expansion of cash-based programming in poor countries increase international migration? Theoretically, cash transfers may deter migration by increasing its opportunity cost, or favor migration by relaxing liquidity, credit, and risk constraints. This paper evaluates the impact of a cash-for-work program on migration. Randomly selected households in Comoros were offered up to US$320 in cash in exchange for their participation in public works projects. We find that the program increased international migration by 38 percent, from 7.8% to 10.8%.

Suggested Citation

  • Jules Gazeaud & Eric Mvukiyehe & Olivier Sterck, 2022. "Cash Transfers and Migration: Theory and Evidence from a Randomized Controlled Trial," Post-Print hal-03512282, HAL.
    • Handle: RePEc:hal:journl:hal-03512282
    Note: View the original document on HAL open archive server: https://hal.science/hal-03512282v1
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    Cited by:

    1. Heidland, Tobias & Michael, Maximilian & Schularick, Moritz & Thiele, Rainer, 2025. "Identifying mutual interests: How donor countries benefit from foreign aid," Kiel Working Papers 2291, Kiel Institute for the World Economy.
    2. Clemens, Michael A. & Mendola, Mariapia, 2024. "Migration from developing countries: Selection, income elasticity, and Simpson’s paradox," Journal of Development Economics, Elsevier, vol. 171(C).
    3. Jules Gazeaud & Victor Stephane, 2023. "Productive Workfare? Evidence from Ethiopia's Productive Safety Net Program," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 265-290, January.
    4. Michael Clemens, 2022. "Do Cash Transfers Deter Migration?," Policy Papers 270, Center for Global Development.
    5. Martínez Flores, Fernanda & Milusheva, Sveta & Reichert, Arndt R. & Reitmann, Ann-Kristin, 2024. "Climate anomalies and international migration: A disaggregated analysis for West Africa," Journal of Environmental Economics and Management, Elsevier, vol. 126(C).
    6. Gazeaud, Jules & Ricard, Claire, 2024. "Learning effects of conditional cash transfers: The role of class size and composition," Journal of Development Economics, Elsevier, vol. 166(C).
    7. Bagga,Aanchal & Holmlund,Marcus Erik & Khan,Nausheen & Subha,Mani & Mvukiyehe,Eric & Premand,Patrick, 2023. "Do Public Works Programs Have Sustained Impacts ? A Review of Experimental Studies from LMICs," Policy Research Working Paper Series 10471, The World Bank.
    8. Marina-Selini Katsaiti & Maroula Khraiche, 2023. "Does access to credit alter migration intentions?," Empirical Economics, Springer, vol. 65(4), pages 1823-1854, October.
    9. Restelli, Gabriele, 2025. "Does aid to migrants in “transit countries” affect their movement intentions? Evidence from Libya," World Development, Elsevier, vol. 191(C).
    10. Brunel, Claire & Liu, Maggie Y., 2025. "Out of the Frying Pan: Weather shocks and internal migration in Brazil," World Development, Elsevier, vol. 188(C).
    11. Maggio, Federico, 2024. "Fleeing a failing state: Self-selection, earnings, and migration costs," World Development, Elsevier, vol. 183(C).
    12. Meemken, Eva-Marie & Aremu, Olayinka & Fabry, Anna & Heepen, Celestina & Illien, Patrick & Kammer, Marie & Laitha, Andrew, 2024. "Policy for decent work in agriculture," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344353, International Association of Agricultural Economists (IAAE).
    13. Gazeaud, Jules & Khan, Nausheen & Mvukiyehe, Eric & Sterck, Olivier, 2023. "With or without him? Experimental evidence on cash grants and gender-sensitive trainings in Tunisia," Journal of Development Economics, Elsevier, vol. 165(C).
    14. repec:wbk:wbrwps:10250 is not listed on IDEAS
    15. Qiu, Huanguang & Hong, Junqiao & Wang, Xiangrui & Filipski, Mateusz, 2024. "Home sweet home: Impacts of living conditions on worker migration with evidence from randomized resettlement in China," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 558-583.
    16. repec:ags:cfcp15:344353 is not listed on IDEAS
    17. David Mckenzie & Simone Bertoli & Elie Murard, 2023. "Migration, families and counterfactual families," Post-Print hal-04310187, HAL.
    18. Bah, Tijan L. & Batista, Catia & Gubert, Flore & McKenzie, David, 2023. "Can information and alternatives to irregular migration reduce “backway” migration from The Gambia?," Journal of Development Economics, Elsevier, vol. 165(C).
    19. Gabriele Restelli, 2023. "Development and International Migration: The Effect of Income on Regular and Irregular Migration Intentions to Europe," Population and Development Review, The Population Council, Inc., vol. 49(1), pages 135-174, March.

    More about this item

    Keywords

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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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