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Project Description

Summary:  View help for Summary How do income shocks affect international migration flows from poor countries? Income growth not only increases the opportunity cost of migration but also eases liquidity constraints. I develop a method to separate these countervailing individual effects and identify the overall income elasticity of migration. Using new administrative and census data from Indonesia, I find that positive agricultural income shocks increase labor emigration flows, particularly in villages with relatively more small landholders. However, in the most developed rural areas, persistent income shocks reduce emigration. Overall, the findings highlight the important role of wealth heterogeneity in shaping migration flows as incomes rise.

Scope of Project

JEL Classification:  View help for JEL Classification
      Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
      O15 Human Resources • Human Development • Income Distribution • Migration
      R23 Regional Migration • Regional Labor Markets • Population • Neighborhood Characteristics
      F22 International Migration
      Q11 Aggregate Supply and Demand Analysis • Prices
      J43 Agricultural Labor Markets
      O13 Agriculture • Natural Resources • Energy • Environment • Other Primary Products


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