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Environmental migration and labor markets in Nepal

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  • Jean-Francois Maystadt
  • Valerie Mueller
  • Ashwini Sebastian

Abstract

While an emerging literature cites weather shocks as migration determinants, scant evidence exists on how such migration impacts 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 4.8 percentage points. The absence of wage effects in the informal sector is consistent with the exit of low-skilled native workers from the labor market. Understanding entrepreneurial constraints and drivers of labor market exits will inform pathways to resilience.

Suggested Citation

  • Jean-Francois Maystadt & Valerie Mueller & Ashwini Sebastian, 2014. "Environmental migration and labor markets in Nepal," Working Papers 66401053, Lancaster University Management School, Economics Department.
  • Handle: RePEc:lan:wpaper:66401053
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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.

    More about this item

    Keywords

    Environmental migration; weather; conflict; labor markets; Nepal;

    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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