Risk Sharing and Internal Migration
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World Bank, Washington, DC
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Over the past two decades, more than
half the population in rural Tanzania migrated within the
country, profoundly changing the nature of traditional
institutions such as informal risk sharing. Mass internal
migration has created geographically disperse networks, on
which the authors collected detailed panel data. By
quantifying how shocks and consumption co-vary across linked
households, they show how migrants unilaterally insure their
extended family members at home. This finding contradicts
risk-sharing models based on reciprocity, but is consistent
with assistance driven by social norms. Migrants sacrifice 3
to 7 percent of their very substantial consumption growth to
provide this insurance, which seems too trivial to have any
stifling effect on their growth through migration.
Palabras clave
ADULT MORTALITY, AGRICULTURAL PRODUCTION, ANNUAL GROWTH, ATTRITION, AVERAGE ANNUAL, BORROWING, BUDGET CONSTRAINT, CASH CROPS, CONSUMPTION GROWTH, CULTURAL CHANGE, DATA SET, DEPENDENT VARIABLE, DESCRIPTIVE STATISTICS, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DISEASES, DISTRICTS, ECONOMETRIC ANALYSIS, ECONOMETRIC MODELS, ECONOMIC DEVELOPMENT, ECONOMIC REVIEW, ECONOMIC STUDIES, EMPIRICAL ANALYSIS, EMPIRICAL LITERATURE, EXPLANATORY VARIABLES, EXTENDED FAMILIES, EXTENDED FAMILY, FAMILY MEMBERS, FINANCIAL SYSTEMS, GENDER, GENERAL EQUILIBRIUM, GENERAL EQUILIBRIUM MODELS, GROWTH RATES, HEALTH INSURANCE, HEALTH RISKS, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD CONSUMPTION, HOUSEHOLD DYNAMICS, HOUSEHOLD LEVEL, HOUSEHOLD MEMBERS, HOUSEHOLD SIZE, HOUSEHOLD SURVEY, HUMAN DEVELOPMENT, IDENTITY, ILLNESS, IMPERFECT INFORMATION, INCOME, INCOME SHOCKS, INCOMES, INEQUALITY, INHERITANCE, INTERGENERATIONAL MOBILITY, INTERNAL MIGRANTS, INTERNAL MIGRATION, INTERNATIONAL MIGRATION, INTERNATIONAL TRADE, KINSHIP, LABOR MARKET, LABOR MIGRATION, LABOUR, LEVELS OF EDUCATION, LONG-RUN GROWTH, LOW INCOME, MARITAL STATUS, MARRIAGES, MEAN CONSUMPTION, MEASUREMENT ERROR, MIGRANT, MIGRANTS, MIGRATION FLOWS, MODERNIZATION, MORAL HAZARD, MORTALITY, NATURAL LOG, NATURAL LOGARITHM, NEGATIVE EFFECT, NEGATIVE SHOCK, 0 HYPOTHESIS, NUMBER OF HOUSEHOLDS, PER CAPITA CONSUMPTION, PER CAPITA CONSUMPTION GROWTH, POLICY DISCUSSIONS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POLITICAL POWER, POPULATION DIVISION, POSITIVE IMPACT, POVERTY REDUCTION, PROGRESS, REGRESSION RESULTS, REMITTANCE, REMITTANCES, RESPECT, RISK AVERSION, RISK SHARING, RITUALS, RURAL AREAS, SMALLHOLDERS, SOCIAL AFFAIRS, SOCIAL NETWORKS, SOCIAL NORMS, SOCIAL RESEARCH, SOCIAL SCIENCE, SOCIETIES, SOCIETY, SPOUSE, TEMPORARY MIGRATION, TOTAL CONSUMPTION, UNEMPLOYMENT, URBAN AREAS, URBAN POPULATION, URBANIZATION, VILLAGES, VULNERABILITY, WITCHCRAFT