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Internal Migration and Borrowing Constraints: Evidence from Peru

Author

Listed:
  • Sonia Laszlo

    (McGill University)

  • Eric Santor

    (Bank of Canada)

Abstract

The decision to migrate has received substantial attention from both theoretical and empirical perspectives. Underlying most analyses is the desire to understand why individuals relocate within their own country, or more drastically, migrate to another country. While there are numerous reasons to migrate, economists have focused their research on the notion that there are gains to be made from migration: ceteris paribus, migrants are expected to earn more than non-migrants (Todaro, 1989). This paper utilizes a rich data set from Peru to assess the determinants of migration. We find that, when controlling for self- selection, migrants do not earn more than “stayers.”

Suggested Citation

  • Sonia Laszlo & Eric Santor, 2004. "Internal Migration and Borrowing Constraints: Evidence from Peru," Development and Comp Systems 0411022, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0411022
    Note: Type of Document - pdf; pages: 38
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0411/0411022.pdf
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    References listed on IDEAS

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    Cited by:

    1. Thurlow, James & Morley, Samuel & Nin-Pratt, Alejandro, 2009. "Lagging regions and development strategies: The case of Peru," IFPRI discussion papers 898, International Food Policy Research Institute (IFPRI).
    2. Vargas, Enver, 2012. "El impacto del gasto público sobre el proceso de migración interna: Evidencia empírica para el periodo 2002-2007," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 23, pages 67-81.

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    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Political Economy and Comparative Economic Systems

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