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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

    as
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    3. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
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    5. Heckman, James J. & Robb, Richard Jr., 1985. "Alternative methods for evaluating the impact of interventions : An overview," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 239-267.
    6. John C. Ham & Xianghong Li & Patricia B. Reagan, 2004. "Propensity Score Matching, a Distance-Based Measure of Migration, and the Wage Growth of Young Men," Working Papers 2004_3, York University, Department of Economics.
    7. Lanzona, Leonardo A., 1998. "Migration, self-selection and earnings in Philippine rural communities," Journal of Development Economics, Elsevier, vol. 56(1), pages 27-50, June.
    8. Pessino, Carola, 1991. "Sequential migration theory and evidence from Peru," Journal of Development Economics, Elsevier, vol. 36(1), pages 55-87, July.
    9. George J. Borjas, 1991. "Immigration and Self-Selection," NBER Chapters,in: Immigration, Trade, and the Labor Market, pages 29-76 National Bureau of Economic Research, Inc.
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    12. Grosh, M.E. & Glewwe, P., 1995. "A Guide to Living Standards Measurement Study Surveys and their Data Sets," Papers 120, World Bank - Living Standards Measurement.
    13. Hillel Rapoport, 2002. "Migration, credit constraints and self-employment: A simple model of occupational choice, inequality and growth," Economics Bulletin, AccessEcon, vol. 15(7), pages 1-5.
    14. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
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    Cited by:

    1. Thurlow, James & Morley, Samuel & Pratt, Alejandro Nin, 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.

    More about this item

    Keywords

    Economic Development; Migration; Credit Constraints.;

    JEL classification:

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

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