Internal Labor Migration as a Shock Coping Strategy: Evidence from a Typhoon

Gröger, André; Zylberberg, Yanos

doi:10.1257/app.20140362

Cited by 121 publications

(120 citation statements)

References 45 publications

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“…Besides the empirical studies noted above, there have also been important theoretical advances. Gröger and Zylberberg (2016) analyze coping mechanisms through labor in-migration of rural economies after catastrophic natural disaster. Specifically, they focus on the impact of typhoon Ketsana in Vietnam during 2009.…”

Section: Literaturementioning

confidence: 99%

Rising Sea Levels and Sinking Property Values: The Effects of Hurricane Sandy on New York's Housing Market

Ortega

Taşpınar

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Rising Sea Levels and Sinking PropertyIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Are coastal cities adjusting to rising sea levels? This paper argues that large-scale events have the potential to ignite the process. We examine the effects of hurricane Sandy on the New York City housing market. We assemble a large plot-level dataset with rich geographic data on housing sales in New York City for the period 2003-2015, along with information on which building structures were damaged by the hurricane, and to what degree. Our difference-in-difference estimates provide robust evidence of a negative impact on the price trajectories of houses that were directly affected by Sandy. Interestingly, this is also the case for houses that were not damaged but face high risk of coastal flooding. Our results suggest that Sandy has increased the perceived risk of living in those neighborhoods. We also show that the negative effects on housing prices appear to be highly persistent. JEL Classification:H56, K42, R33

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Section: Literaturementioning

confidence: 99%

Rising Sea Levels and Sinking Property Values: The Effects of Hurricane Sandy on New York's Housing Market

Ortega

Taşpınar

2017

SSRN Journal

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“…2 The body of evidence on the ability of dispersed social networks to help insure against collective shocks is, however, nuanced. Gröger and Zylberberg (2016) distinguish the insurance effect against correlated shocks based on how widely dispersed household-migrant ties are, and find that while having a migrant household member outside of the origin household's district helps smooth household income in the face of a typhoon, migrant ties to individuals in the same district do not mitigate the effects of this weather shock. Also differentiated, albeit reversed, results emerge in another context: airtime transfers that people made using mobile phones to earthquake survivors in their social network (Blumenstock, Eagle, & Fafchamps, 2016).…”

Section: Social Network Shocks and The Dynamics Of Asset Pathsmentioning

confidence: 99%

“…The empirical literature on the impact of shocks on assets, income, and welfare has used a diverse array of measures of shocks, usually directly informed by the specificities of the empirical context in the studies. Collective shocks, for example, have been captured as a dummy variable for the time and location affected by an earthquake (e.g., Blumenstock et al, 2016), the amount of rainfall by village and year (e.g., Dercon & Christiaensen, 2011), the percentage of an area inundated by water following a typhoon (e.g., Gröger & Zylberberg, 2016), and simply by interacted time-village dummy variables (Jalan & Ravallion, 1999).…”

Section: Shocksmentioning

confidence: 99%

Social networks near and far: The role of bonding and bridging social capital for assets of the rural poor

Mogues

2018

Review Development Economics

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With formal insurance and credit markets either absent or inaccessible to rural agents in most poor rural economies, social networks play a highly important role in mitigating the risks that agricultural households face. These kinds of informal insurance schemes are presumed to be most effective in the face of idiosyncratic risk. However, social mechanisms also exist in developing countries that may reduce locally correlated risk such as the adverse economic effects of climatic conditions that affect multiple residents in a village. This paper analyzes the role of localized (bonding) and of spatially dispersed (bridging) social capital in mitigating the impact of idiosyncratic and of locally correlated shocks on farm households’ livestock endowments. Using dynamic panel generalized method of moments (GMM) system estimation with seven‐period panel dataset of over 400 households, we find that bonding social capital is able to protect households’ livestock assets against idiosyncratic shocks, but bridging social capital does not play a role in mitigating the impact of correlated shocks. The results hold up to multiple robustness checks. A test of different hypotheses about the nature of these assets’ trajectories rejects the asset poverty trap hypothesis, and instead finds that livestock asset dynamics are characterized by a single stable equilibrium.

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Section: Figurementioning

confidence: 99%

“…Especially since credit constraint restricts relatively deprived or poorer households and individuals from moving from agriculture to modern sector (Banerjee and Newman 1998), and temporary migrants are more likely to remit more (Dustmann and Mestres 2010), internal temporary migration is a common coping strategy in many developing countries (Gröger and Zylberberg 2016). Gröger and Zylberberg (2016) found that Vietnamese households with settled migrants ex ante receive more remittances; whereas non-migrant households send family members away to diversify the sources of income. 11 We have accounted for the number of dependent children attending school, the number of nonworking dependents (e.g., smaller children and elderly relatives), as well as the number of adult, working-age children living either at home (i.e., live-in) or away from home (i.e., live-away), which allows for the possibility that not all working-age family members contribute to the household labor endowment.…”

Section: Figurementioning

confidence: 99%

Fishing and Nonfishing Income Decisions: The Role of Human Capital and Family Structure

2018

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Resource-dependent households often diversify their income. We model demand for remittances and supply of off-resource labor as a joint decision, and discuss household tradeoffs. We extend the off-farm labor supply literature to a rural fishery, contrasting our results to common findings in the farm literature and providing empirical evidence of the interdependence between education and family structure in determining income diversification. Using a unique dataset from Malaysia, we find that more educated households are less likely to diversify their income, with caveats depending on family composition.Policy implications for resource management in a remittance economy with alternative livelihoods are discussed.

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Internal Labor Migration as a Shock Coping Strategy: Evidence from a Typhoon

Cited by 121 publications

References 45 publications

Rising Sea Levels and Sinking Property Values: The Effects of Hurricane Sandy on New York's Housing Market

Rising Sea Levels and Sinking Property Values: The Effects of Hurricane Sandy on New York's Housing Market

Social networks near and far: The role of bonding and bridging social capital for assets of the rural poor

Fishing and Nonfishing Income Decisions: The Role of Human Capital and Family Structure

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