Migration and Economic Mobility in Tanzania: Evidence from a Tracking Survey

52 Pages Posted: 20 Apr 2016

See all articles by Kathleen Beegle

Kathleen Beegle

World Bank - Development Research Group (DECRG)

Joachim De Weerdt

University of Antwerp - Institute of Development Policy and Management; KU Leuven - Centre for Institutions and Economic Performance (LICOS); Economic Development Initiatives (EDI)

Stefan Dercon

University of Oxford - Department of Economics

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Date Written: December 1, 2008

Abstract

This study explores the extent to which migration has contributed to improved living standards of individuals in Tanzania. Using longitudinal data on individuals, the authors estimate the impact of migration on consumption growth between 1991 and 2004. The analysis addresses concerns about heterogeneity and unobservable factors correlated with both income changes and the decision to migrate. The findings show that migration adds 36 percentage points to consumption growth, during a period of considerable growthin consumption. These results are robust to numerous tests and alternative specifications. Unpacking the findings, the analysis finds that moving out of agriculture is correlated with much higher growth than staying in agriculture, although growth is always higher in any sector if one physically moves. Economic mobility is strongly linked to geographic mobility. The puzzle is why more people do not move if returns to geographic mobility are high. The evidence is consistent with models in which exit barriers are set by home communities (through social and family norms) that prevent migration of certain categories of people.

Keywords: Population Policies, Youth and Governance, Consumption, Rural Poverty Reduction, Access to Finance

Suggested Citation

Beegle, Kathleen and De Weerdt, Joachim and Dercon, Stefan, Migration and Economic Mobility in Tanzania: Evidence from a Tracking Survey (December 1, 2008). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1318132

Kathleen Beegle (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

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Joachim De Weerdt

University of Antwerp - Institute of Development Policy and Management ( email )

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Lange Sint Annastraat 7
Antwerp, 2000
Belgium

KU Leuven - Centre for Institutions and Economic Performance (LICOS) ( email )

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Leuven, 3000
Belgium

Economic Development Initiatives (EDI) ( email )

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Tanzania

HOME PAGE: http://www.edi-africa.com

Stefan Dercon

University of Oxford - Department of Economics ( email )

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Oxford, OX1 3BJ
United Kingdom
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44 1865 271094 (Fax)

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