Receiving People or Sending Money : Differential Impact of Income Shocks on Migration and Transfers in Senegal
Using a recent household survey conducted in Senegal with detailed data on movements in and out of the household as well as transfers, both sent and received, we compare the impact of income shocks on both, focusing on differences between the urban and rural sectors. Marked differences emerge. While urban households share positive shocks with their network through sending them transfers, rural households react to positive income shocks through hosting new members, in fact young girls. On the other hand, we find that young adult children of household members leave the household in case of negative shocks while transfers received by the household do not seem to be impacted by shocks whatsoever. So far, except for departures of young adults, the closest mechanism to insurance is that negative shocks decrease arrivals in the household as well as transfers sent.
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