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Journal article

Cash transfers and migration: Theory and evidence from a randomized controlled trial

Abstract:
Will the fast expansion of cash-based programming in poor countries increase international migration? Theoretically, cash transfers may deter migration by increasing its opportunity cost, or favor migration by relaxing liquidity, credit, and risk constraints. This paper evaluates the impact of a cash-for-work program on migration. Randomly selected households in Comoros were offered up to US$320 in cash in exchange for their participation in public works projects. We find that the program increased international migration by 38 percent, from 7.8% to 10.8%. The increase in migration appears to be driven by the alleviation of liquidity and risk constraints.
Publication status:
In press
Peer review status:
Peer reviewed

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Publisher copy:
10.1162/rest_a_01041

Authors

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Institution:
University of Oxford
Division:
SSD
Department:
International Development
Role:
Author


Publisher:
Massachusetts Institute of Technology Press
Journal:
Review of Economics and Statistics More from this journal
Volume:
105
Issue:
1
Pages:
143-157
Publication date:
2021-03-17
Acceptance date:
2021-01-21
DOI:
EISSN:
1530-9142
ISSN:
0034-6535


Language:
English
Keywords:
Pubs id:
1158356
Local pid:
pubs:1158356
Deposit date:
2021-01-25
ARK identifier:

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