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Short-term migration, rural public works and urban labor markets : evidence from India
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Imbert, Clément and Papp, John (2020) Short-term migration, rural public works and urban labor markets : evidence from India. Journal of the European Economic Association, 18 (2). pp. 927-963. doi:10.1093/jeea/jvz009 ISSN 1542-4766.
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Official URL: https://doi.org/10.1093/jeea/jvz009
Abstract
This paper studies the effect of India's rural public works program on rural-to-urban migration and urban labor markets. We find that seasonal migration from rural districts that implemented the program decreased relative to those that were selected to, but did not implement it. We use a gravity model and find that real wages rose faster in cities with higher predicted migration from program districts. Since most seasonal migrants work outside of their district, urban wage increases were not limited to program districts, and may have attracted migrants from nonprogram districts. Difference-in-differences may hence be biased. Structural estimates indeed suggest that migration decreased by 22% in program districts, but also increased by 5% in nonprogram districts. As a result, urban wages increased by only 0.5%, against 4.1% if the program had been implemented in all selected districts.
| Item Type: | Journal Article | ||||||||
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| Divisions: | Faculty of Social Sciences > Economics | ||||||||
| Journal or Publication Title: | Journal of the European Economic Association | ||||||||
| Publisher: | Oxford University Press | ||||||||
| ISSN: | 1542-4766 | ||||||||
| Official Date: | April 2020 | ||||||||
| Dates: |
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| Volume: | 18 | ||||||||
| Number: | 2 | ||||||||
| Page Range: | pp. 927-963 | ||||||||
| DOI: | 10.1093/jeea/jvz009 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Reuse Statement (publisher, data, author rights): | This is a pre-copyedited, author-produced version of an article accepted for publication in Journal of the European Economic Association following peer review. The version of record Clément Imbert, John Papp, Short-term Migration, Rural Public Works, and Urban Labor Markets: Evidence from India, Journal of the European Economic Association, Volume 18, Issue 2, April 2020, Pages 927–963, available online at: https://doi.org/10.1093/jeea/jvz009 | ||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||
| Date of first compliant deposit: | 7 December 2018 | ||||||||
| Date of first compliant Open Access: | 28 March 2021 | ||||||||
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