A microeconomic analysis of the determinants and effects of economic migration in India Öffentlichkeit

Dubey, Raoul (Spring 2022)

Permanent URL: https://etd.library.emory.edu/concern/etds/8p58pf436?locale=de
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Abstract

Given the rising frequency and intensity of internal economic migration in developing countries, it is vital to better understand the determinants and effects of this type of migration. To this extent, I analyze economic migration in India, at a household level. Firstly, I explore the determinants of economic migration and find results that are mostly consistent with existing theories and literature. Secondly, using a Heckman selection model, I analyze the predictors of remittance amounts received by households and find statistically significant results. Lastly, using a propensity score matching method, I estimate the effect of remittances on household expenditure. I find that household marginal propensity to consume remittances equals 0.587. I attempt to contextualize my findings by highlighting potential mechanisms that may explain the results obtained. 

Table of Contents

1 Introduction 1

2 Theories of migration 5

2.1 Neoclassical economics: macro theory...................... 5

2.2 Neoclassical economics: micro theory ...................... 5

2.3 The new economics of labor migration ..................... 6

2.4 The perpetuation of internal migration ..................... 7

2.5 Remittances.................................... 8

3 Data 10

3.1 National Sample Survey 64th Round Employment & Unemployment and Migration Survey .................................. 10

4 Methodology 11

4.1 Migration determinants.............................. 11

4.2 Determinants of remittance amount received.................. 13

4.2.1 Heckman selection model......................... 14

4.3 Effect of remittances on household expenditure. . . . . . . . . . . . . . . . . 16

4.3.1 Propensity score matching........................ 17

5 Results 21

5.1 Migration determinants.............................. 21

5.2 Determinants of remittance amount received . . . . . . . . . . . . . . . . . 24

5.3 Effect of remittances on household expenditure . . . . . . . . . . . . . . . . . 27

6 Conclusion 28

7 Tables 31 

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