Cash transfers and migration: theory and evidence from a randomized controlled trial
Will the fast expansion of cash-based programming in developing countries increase international migration? Theoretically, cash transfers may favor international migration by relaxing liquidity, credit, and risk constraints. But transfers, especially those conditional upon staying at home, may also...
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| Format: | Working paper |
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Centre for the Study of African Economies
2019
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| _version_ | 1826276617832366080 |
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| author | Gazeaud, J Mvukiyehe, E Sterck, O |
| author_facet | Gazeaud, J Mvukiyehe, E Sterck, O |
| author_sort | Gazeaud, J |
| collection | OXFORD |
| description | Will the fast expansion of cash-based programming in developing countries increase international migration? Theoretically, cash transfers may favor international migration by relaxing liquidity, credit, and risk constraints. But transfers, especially those conditional upon staying at home, may also increase the opportunity cost of migrating abroad. 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 migration to Mayotte -- the neighboring and richer French Island - by 38 percent, from 7.8% to 10.8%. The increase in migration is explained by the alleviation of liquidity and risk constraints, and by the fact that the program did not increase the opportunity cost of migration for likely migrants. |
| first_indexed | 2024-03-06T23:16:39Z |
| format | Working paper |
| id | oxford-uuid:675d780c-09f4-4f8f-87ea-15f744eb4aa7 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T23:16:39Z |
| publishDate | 2019 |
| publisher | Centre for the Study of African Economies |
| record_format | dspace |
| spelling | oxford-uuid:675d780c-09f4-4f8f-87ea-15f744eb4aa72022-03-26T18:37:42ZCash transfers and migration: theory and evidence from a randomized controlled trialWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:675d780c-09f4-4f8f-87ea-15f744eb4aa7Symplectic Elements at OxfordCentre for the Study of African Economies2019Gazeaud, JMvukiyehe, ESterck, OWill the fast expansion of cash-based programming in developing countries increase international migration? Theoretically, cash transfers may favor international migration by relaxing liquidity, credit, and risk constraints. But transfers, especially those conditional upon staying at home, may also increase the opportunity cost of migrating abroad. 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 migration to Mayotte -- the neighboring and richer French Island - by 38 percent, from 7.8% to 10.8%. The increase in migration is explained by the alleviation of liquidity and risk constraints, and by the fact that the program did not increase the opportunity cost of migration for likely migrants. |
| spellingShingle | Gazeaud, J Mvukiyehe, E Sterck, O Cash transfers and migration: theory and evidence from a randomized controlled trial |
| title | Cash transfers and migration: theory and evidence from a randomized controlled trial |
| title_full | Cash transfers and migration: theory and evidence from a randomized controlled trial |
| title_fullStr | Cash transfers and migration: theory and evidence from a randomized controlled trial |
| title_full_unstemmed | Cash transfers and migration: theory and evidence from a randomized controlled trial |
| title_short | Cash transfers and migration: theory and evidence from a randomized controlled trial |
| title_sort | cash transfers and migration theory and evidence from a randomized controlled trial |
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