2020
DOI: 10.3386/w26868
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Migration Costs and Observational Returns to Migration in the Developing World

Abstract: Recent studies find that observational returns to rural-urban migration are near zero in three developing countries. We revisit this result using panel tracking surveys from six countries, finding higher returns on average. We then interpret these returns in a multi-region Roy model with heterogeneity in migration costs. In the model, the observational return to migration confounds the urban premium and the individual benefits of migrants, and is not directly informative about the welfare gain from lowering mi… Show more

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Cited by 12 publications
(11 citation statements)
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References 29 publications
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“…In most countries, nonagricultural workers have higher average schooling levels, averaging twice as many years of schooling as those working in agriculture. However, recent evidence from Brazil, China, Ghana, Indonesia, Kenya, Malawi, South Africa, and Tanzania suggests that observed gains from rural-to-urban migration are much smaller relative to the level of gaps that exist between urban and rural areas (Hicks et al 2017;Lagakos et al 2020).…”
Section: Jobs Skills and Amenities Attract Migrants To Towns And Citiesmentioning
confidence: 99%
“…In most countries, nonagricultural workers have higher average schooling levels, averaging twice as many years of schooling as those working in agriculture. However, recent evidence from Brazil, China, Ghana, Indonesia, Kenya, Malawi, South Africa, and Tanzania suggests that observed gains from rural-to-urban migration are much smaller relative to the level of gaps that exist between urban and rural areas (Hicks et al 2017;Lagakos et al 2020).…”
Section: Jobs Skills and Amenities Attract Migrants To Towns And Citiesmentioning
confidence: 99%
“…Empirically, there is thus a concern as to whether these surveys are subject to selection biases which may artificially inflate or deflate estimates of returns to migration. Lagakos et al (2020) examine the returns to migration for rural-urban migrants using nationally representative surveys in China, Ghana, Indonesia, Malawi, South Africa, and Tanzania. The authors rely on nationally representative panel surveys which made considerable efforts to track migrants across space.…”
Section: Returns To Migrationmentioning
confidence: 99%
“…We learn that an international migration opportunity triples the migrant's earnings, and the remittances he sends doubles the incomes of his family in Bangladesh. These effects are much larger than the returns to rural-urban migration within Bangladesh, and within other developing countries (Lagakos et al, 2020).…”
Section: Discussionmentioning
confidence: 91%