The Welfare Effects of Encouraging Rural-Urban Migration
The Welfare Effects of Encouraging Rural-Urban Migration
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DOI:
10.3386/w24193
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发表时间:
2018-01
期刊:
影响因子:
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通讯作者:
David Lagakos;A. M. Mobarak;Michael E. Waugh
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文献类型:
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作者:
David Lagakos;A. M. Mobarak;Michael E. Waugh
This paper studies the welfare effects of encouraging rural–urban migration in the developing world. To do so, we build and analyze a dynamic general‐equilibrium model of migration that features a rich set of migration motives. We estimate the model to replicate the results of a field experiment that subsidized seasonal migration in rural Bangladesh, leading to significant increases in migration and consumption. We show that the welfare gains from migration subsidies come from providing better insurance for vulnerable rural households rather than from correcting spatial misallocation by relaxing credit constraints for those with high productivity in urban areas that are stuck in rural areas.