Effect of Price Risk on Migration: Evidence from Ethiopian Rural Households
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This paper examines the relationship between household risk preferences towards agricultural commodity prices and out-migration from rural households using the Ethiopian Rural Households Survey (ERHS). Based on panel regression results with district fixed effects, household willingness-to-pay to stabilize the prices of seven major agricultural commodities has a significant and positive impact on out-migration in Ethiopian rural households. The paper also finds that higher volatility of coffee and maize prices have a significant relationship with out-migration of net sellers selling coffee and maize.