Seasonal migration and micro-credit in the lean period : evidence from northwest Bangladesh
This paper investigates the relationship between access to micro-credit and temporary seasonal migration, an issue which is largely ignored in the standard rural-urban migration literature. Seasonal migration due to agricultural downturns is a common phenomenon in developing countries. Using primary data from a cross-sectional household survey from the northwest part of Bangladesh, this study quantifies the factors that influence such migration decisions. Among other results, we find that network effects play a significant role in influencing the migration decision, with the presence of kinsmen at the place of destination having considerable impact. Seasonal migration is a natural choice for individual suffering periodic hardship; however the strict weekly loan repayment rules of Micro-credit Institutes can have an adverse effect on this process, reducing the ability of borrowers to react to a shock. Our result suggests that poor individuals prefer the option of not accessing the micro-credit and opt for temporal seasonal migration during the lean period. The results have numerous potential policy implications, including the design of typical micro-credit schemes.
|Date of creation:||Mar 2011|
|Date of revision:|
|Publication status:||Published in IDE Discussion Paper. No. 294. 2011.3|
|Contact details of provider:|| Postal: 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545|
Web page: http://www.ide.go.jp/
More information through EDIRC
|Order Information:|| Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN|
Web: http://www.ide.go.jp/English/Publish/Order Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James J, 1978.
"Dummy Endogenous Variables in a Simultaneous Equation System,"
Econometric Society, vol. 46(4), pages 931-59, July.
- James J. Heckman, 1977. "Dummy Endogenous Variables in a Simultaneous Equation System," NBER Working Papers 0177, National Bureau of Economic Research, Inc.
- Alan de Brauw & Tomoko Harigaya, 2007.
"Seasonal Migration and Improving Living Standards in Vietnam,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 89(2), pages 430-447.
- Tomoko Harigaya & Alan de Brauw, 2004. "Seasonal Migration and Improving Living Standards in Vietnam," Department of Economics Working Papers 2004-10, Department of Economics, Williams College.
- Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, 2010. "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications, The World Bank, number 2693, July.
- Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
- Mckenzie, David & Rapoport, Hillel, 2007.
"Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico,"
Journal of Development Economics,
Elsevier, vol. 84(1), pages 1-24, September.
- David Mckenzie & Hillel Rapoport, 2004. "Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico," Working Papers 2004-3, Bar-Ilan University, Department of Economics.
- Stark, Oded & Levhari, David, 1982. "On Migration and Risk in LDCs," Economic Development and Cultural Change, University of Chicago Press, vol. 31(1), pages 191-96, October.
- Rosenzweig, Mark R & Stark, Oded, 1989.
"Consumption Smoothing, Migration, and Marriage: Evidence from Rural India,"
Journal of Political Economy,
University of Chicago Press, vol. 97(4), pages 905-26, August.
- Rosenzweig, Mark R. & Stark, Oded, 1987. "Consumption Smoothing, Migration and Marriage: Evidence from Rural India," Bulletins 7515, University of Minnesota, Economic Development Center.
- Mariapia MENDOLA, 2005.
"Migration and technological change in rural households: complements or substitutes?,"
Departmental Working Papers
2005-15, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Mendola, Mariapia, 2008. "Migration and technological change in rural households: Complements or substitutes?," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 150-175, February.
- Shahidur R. Khandker & M.A. Baqui Khalily & Hussain A. Samad, 2010. "Seasonal Migration to Mitigate Income Seasonality: Evidence from Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 48(8), pages 1063-1083, October.
- Ben Rogaly & Daniel Coppard & Abdur Safique & Kumar Rana & Amrita Sengupta & Jhuma Biswas, 2002. "Seasonal Migration and Welfare/Illfare in Eastern India: A Social Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 38(5), pages 89-114.
- Daniele Fabbri & Chiara Monfardini, 2006.
"Style of practice and assortative mating: a recursive probit analysis of cesarean section scheduling in Italy,"
CHILD Working Papers
wp06_06, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Daniele Fabbri & Chiara Monfardini, 2008. "Style of practice and assortative mating: a recursive probit analysis of Caesarean section scheduling in Italy," Applied Economics, Taylor & Francis Journals, vol. 40(11), pages 1411-1423.
- D. Fabbri & C. Monfardini, 2006. "Style of practice and assortative mating: a recursive probit analysis of cesarean section scheduling in Italy," Working Papers 557, Dipartimento Scienze Economiche, Universita' di Bologna.
- Katz, Eliakim & Stark, Oded, 1986. "Labor Migration and Risk Aversion in Less Developed Countries," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 134-49, January.
- Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 549-599.
When requesting a correction, please mention this item's handle: RePEc:jet:dpaper:dpaper294. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie Kobayashi)
If references are entirely missing, you can add them using this form.