Determinants of the Choice of Migration Destination

55 Pages Posted: 8 Sep 2009

See all articles by Marcel Fafchamps

Marcel Fafchamps

Stanford University - Freeman Spogli Institute for International Studies

Forhad Shilpi

World Bank - Development Research Group (DECRG)

Multiple version iconThere are 2 versions of this paper

Date Written: August 2009

Abstract

This paper examines migrants' choice of destination conditional on migration. To this end, we design an empirical strategy which remedies both migration selection and unobserved heterogeneity problems. The study uses data from two rounds of Nepal Living Standard Surveys and a Population Census and examine how the choice of a migration destination is influenced by income differentials and other covariates. We find distance, population density, and social proximity to have a strong significant effect: migrants move primarily to proximate, high population density areas where many people share their language and ethnic background. Better access to amenities is significant as well. Differentials in average income across districts are significant in univariate comparisons but not once we control for other covariates. Differentials in consumption expenditures are statistically significant but smaller in magnitude than other determinants. It is differentials in absolute, not relative, consumption that seem to matter most to work migrants. Except for the latter, results are robust to different specifications and datasets.

Keywords: income differentials, migration, south Asia

JEL Classification: J61, O15

Suggested Citation

Fafchamps, Marcel and Shilpi, Forhad, Determinants of the Choice of Migration Destination (August 2009). CEPR Discussion Paper No. DP7407. Available at SSRN: https://ssrn.com/abstract=1469906

Marcel Fafchamps (Contact Author)

Stanford University - Freeman Spogli Institute for International Studies ( email )

Stanford, CA 94305
United States

Forhad Shilpi

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

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-458-7476 (Phone)
202-522-1151 (Fax)

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