Long-term Effects of Weather-induced Migration on Urban Labor and Housing Markets

Matias Busso and Juan Chauvin

No 12668, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This paper explores the effects of weather-induced rural-urban migration on urban labor and housing markets in Brazil. In order to identify causal effects, it uses weather shocks to the rural municipalities of origin of migrants. We show that larger migration shocks led to an increase in employment growth and a reduction in wage growth of 4 and 5 percent, respectively. The increased migration flows also affected the housing market in destination cities. On average, it led to 1 percent faster growth of the housing stock, accompanied by 5 percent faster growth in housing rents. These effects vary sharply by housing quality. We find a substantial positive effect on the growth rates of the most precarious housing units (with no effect on rents) and a negative effect on the growth of higher-quality housing units (with a positive effect on rents). This suggests that rural immigration growth slowed down housing-quality upgrading in destination cities.

Keywords: Weather-induced migration; Rural-urban migration; Urban labor markets; Urban housing markets; developing countries (search for similar items in EconPapers)
JEL-codes: J46 J61 O18 R23 (search for similar items in EconPapers)
Date: 2023-01
New Economics Papers: this item is included in nep-dev, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:12668

DOI: 10.18235/0004714

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