Temporary International Migration and Shocks: Analysis using panel data
Tanika Chakraborty and
Departmental Working Papers from The University of Winnipeg, Department of Economics
We analyze a household’s decision to have temporary international migrants when faced with shocks. We consider a household maximization problem and derive the eﬀects of diﬀerent kinds of shocks on the migration decision. Using four waves of the Life in Kyrgyzstan panel surveys, we empirically examine these eﬀects. We contribute to the literature by accounting for household level unobserved heterogeneity, distinguishing between onward and return migration, and examining the underlying insurance motive of migration. We ﬁnd that while agricultural and household speciﬁc idiosyncratic shocks have a positive eﬀect on the likelihood to migrate, displacement shocks have a negative eﬀect. The diﬀerence between the eﬀects of these shocks is explained by the dynamics of migration. While agricultural and displacement shocks aﬀect return migration, household speciﬁc idiosyncratic shocks drive onward migration. We further ﬁnd that the eﬀect of the displacement and agricultural shocks on onward and return migration are muted when households have easier access to informal borrowing.
New Economics Papers: this item is included in nep-dev, nep-ias, nep-mig, nep-tra and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:win:winwop:2018-03
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