Publication: Migration, Sorting and Regional Inequality : Evidence from Bangladesh
Date
2008-05
ISSN
Published
2008-05
Author(s)
Shilpi, Forhad
Abstract
Using household level data from
Bangladesh, this paper examines the differences in the rates
of return to household attributes over the entire welfare
distribution. The empirical evidence uncovers substantial
differences in returns between an integrated region
contiguous to the country's main growth centers, and a
less integrated region cut-off from those centers by major
rivers. The evidence suggests that households with better
observed and unobserved attributes (such as education and
ability) are concentrated in the integrated region where
returns are higher. Within each region, mobility of workers
seems to equalize returns at the lower half of the
distribution. The natural border created by the rivers
appears to hinder migration, causing returns differences
between the regions to persist. To reduce regional
inequality in welfare in Bangladesh, the results highlight
the need for improving connectivity between the regions, and
for investing in portable assets of the poor (such as human capital).
Citation
“Shilpi, Forhad. 2008. Migration, Sorting and Regional Inequality : Evidence from Bangladesh. Policy Research Working Paper No. 4616. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/3bd90f03-468b-50fd-af56-d58b1f465808 License: CC BY 3.0 IGO.”
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