 Risk Attitudes and Household Migration DecisionsChristian Dustmann, Francesco Fasani, Xin Meng and Luigi Minale Journal of Human Resources, 2023, vol. 58, issue 1, 112-145 Abstract: We analyze the relation between risk attitudes and household migration decisions. Using data of rural-urban migrants in China and their family members left behind, we obtain three key findings: (i) conditional on migration gains, less risk-averse individuals are more likely to migrate; (ii) conditional on own risk aversion, individuals are more likely to migrate the higher the risk aversion of the other household members; and (iii) conditional on average risk aversion, households with more dispersed risk preferences are more likely to send migrants. These findings are in line with a stylized model that we develop. Our results provide evidence that the distribution of risk attitudes within the household affects whether a migration takes place and who will emigrate. They also suggest that the risk diversification gain to other household members may lead to migrations that would not take place when decisions were made at the individual level. JEL-codes: D81 J61 O15 R23 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:58:y:2023:i:1:p:112-145 Access Statistics for this article More articles in Journal of Human Resources from University of Wisconsin Press |
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