Working Paper: CEPR ID: DP18418
Authors: Clément Imbert; Joan Monras; Marlon Seror; Yanos Zylberberg
Abstract: This paper argues that migrants' decision to bring their dependent family members shapes their consumption behavior, their choice of destination, and their sensitivity to migration barriers. We develop and estimate, using Chinese data, a quantitative general equilibrium spatial model in which rural workers choose whether, how (with or without their family), where to migrate, and how to allocate their consumption across space. The model rationalizes the empirical evidence: Rural migrants disproportionately move to expensive, unwelcoming cities, live without their family, and remit substantially. We quantify the role of migration frictions (e.g., hukou policies) in explaining these patterns and show that, by changing the relative value of consumption across space, they contribute to the rise of non-family migration and to the emergence of mega-cities.
Keywords: migration; remittances; economic geography; spatial equilibrium
JEL Codes: R12; J61; O15
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| family migration decisions (J12) | higher remittances (F24) |
| higher remittances (F24) | rural-urban migration (R23) |
| migration policy (F22) | welfare outcomes for different populations (I38) |
| 2014 hukou reform (R28) | overall migration (F22) |