Push and Pull : A Study of International Migration from Nepal

This paper studies migration choices in the presence of liquidity constraints and varying costs of migration. This paper presents a simple theoretical framework that analyzes migration response to both push and pull factors in such settings. This f...

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Main Author: Shrestha, Maheshwor
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/318581486560991532/Push-and-pull-a-study-of-international-migration-from-Nepal
http://hdl.handle.net/10986/26024
id okr-10986-26024
recordtype oai_dc
spelling okr-10986-260242022-09-18T12:15:57Z Push and Pull : A Study of International Migration from Nepal Shrestha, Maheshwor migration conflict liquidity constraints remittances rainfall This paper studies migration choices in the presence of liquidity constraints and varying costs of migration. This paper presents a simple theoretical framework that analyzes migration response to both push and pull factors in such settings. This framework implies that a shock to the push factors in the origin leads to differential observed response to migration to various destinations, as the shocks affect different parts of the wealth distribution. The implications of this framework are tested in the context of international migration from Nepal, using a panel of 452 villages observed at three periods in the 2000s. The analysis uses rainfall shocks and deaths due to conflict as "push" shocks and growth in manufacturing and construction in destination countries as "pull" shocks. The findings show that a rainfall shock that increases household income by US$ 100 increases migration to India by 54 percent but has no effect on migration elsewhere. An increase in conflict, which reduces consumption and amenity of the wealthier more, increases migration abroad, especially from urban areas. An increase in demand from the destination countries, especially the Gulf countries and Malaysia, has strong effects on migration to those destinations. These findings are consistent with the theoretical framework, and suggest the presence of large liquidity constraints. An increase in income can boost migration to India, whereas a reduction in the cost of migration might increase profitable migration elsewhere. The responsiveness to "pull" shocks suggests that households are willing to take advantage of these opportunities. 2017-02-08T22:34:23Z 2017-02-08T22:34:23Z 2017-02 Working Paper http://documents.worldbank.org/curated/en/318581486560991532/Push-and-pull-a-study-of-international-migration-from-Nepal http://hdl.handle.net/10986/26024 English en_US Policy Research Working Paper;No. 7965 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Nepal
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic migration
conflict
liquidity constraints
remittances
rainfall
spellingShingle migration
conflict
liquidity constraints
remittances
rainfall
Shrestha, Maheshwor
Push and Pull : A Study of International Migration from Nepal
geographic_facet South Asia
Nepal
relation Policy Research Working Paper;No. 7965
description This paper studies migration choices in the presence of liquidity constraints and varying costs of migration. This paper presents a simple theoretical framework that analyzes migration response to both push and pull factors in such settings. This framework implies that a shock to the push factors in the origin leads to differential observed response to migration to various destinations, as the shocks affect different parts of the wealth distribution. The implications of this framework are tested in the context of international migration from Nepal, using a panel of 452 villages observed at three periods in the 2000s. The analysis uses rainfall shocks and deaths due to conflict as "push" shocks and growth in manufacturing and construction in destination countries as "pull" shocks. The findings show that a rainfall shock that increases household income by US$ 100 increases migration to India by 54 percent but has no effect on migration elsewhere. An increase in conflict, which reduces consumption and amenity of the wealthier more, increases migration abroad, especially from urban areas. An increase in demand from the destination countries, especially the Gulf countries and Malaysia, has strong effects on migration to those destinations. These findings are consistent with the theoretical framework, and suggest the presence of large liquidity constraints. An increase in income can boost migration to India, whereas a reduction in the cost of migration might increase profitable migration elsewhere. The responsiveness to "pull" shocks suggests that households are willing to take advantage of these opportunities.
format Working Paper
author Shrestha, Maheshwor
author_facet Shrestha, Maheshwor
author_sort Shrestha, Maheshwor
title Push and Pull : A Study of International Migration from Nepal
title_short Push and Pull : A Study of International Migration from Nepal
title_full Push and Pull : A Study of International Migration from Nepal
title_fullStr Push and Pull : A Study of International Migration from Nepal
title_full_unstemmed Push and Pull : A Study of International Migration from Nepal
title_sort push and pull : a study of international migration from nepal
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/318581486560991532/Push-and-pull-a-study-of-international-migration-from-Nepal
http://hdl.handle.net/10986/26024
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