The effect of income shocks on migration: evidence from rural Vietnam

Cuong Nguyen

Applied Economics Letters, 2020, vol. 27, issue 18, 1509-1514

Abstract: In this study, we aim to estimate the causal effect of income shocks on migration in rural Vietnam. We use rainfall extremes as an exogenous source for income shocks. We find that high rainfall extremes increase income growth of households, while low rainfall extremes reduce their income growth. Using these rainfall extremes as the instrumental variables for income shocks, we find that negative income shocks encourage the migration. Experiencing a decrease in per capita income increases the probability of migration of rural people by 0.06.

Date: 2020
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DOI: 10.1080/13504851.2019.1693015

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