Publication: The Impacts of International Migration on Remaining Household Members : Omnibus Results from a Migration Lottery Program
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Published
2011-11
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0034-6535
Date
2015-02-12
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We use a migration lottery program to overcome the double-selectivity problems posed by migration. We compare a wide range of outcomes for the remaining household members of Tongan emigrants with those of members of similar households who were unsuccessful in the lottery, with the policy rules determining which household members can move. Multiple hypothesis testing procedures are used to examine robustness. The overall impact on households left behind is largely negative in terms of resource availability, and both sources of selectivity matter, leading studies that fail to address them adequately to misrepresent the impact of migration on households.
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Publication The Impacts of International Migration on Remaining Household Members : Omnibus Results from a Migration Lottery Program(2009-06-01)The impacts of international migration on development in the sending countries, and especially the effects on remaining household members, are increasingly studied. However, comparisons of households in developing countries with and without migrants are complicated by a double-selectivity problem: households self-select into migration, and among households involved in migration, some send a subset of members with the rest remaining while other households migrate en masse. The authors address these selectivity issues using the randomization provided by an immigration ballot under the Pacific Access Category of New Zealand s immigration policy. They survey applicants to the 2002-05 ballots in Tonga and compare outcomes for the remaining household members of emigrants with those for members of similar households that were unsuccessful in the ballots. The immigration laws determine which household members can accompany the principal migrant, providing an instrument to address the second selectivity issue. Using this natural experiment, the authors examine the myriad impacts that migration has on remaining household members, focussing on labor supply, income, durable assets, financial service usage, diet, and physical and mental health. The analysis uses multiple hypothesis testing procedures to examine which impacts are robust. The findings indicate that the overall impact on households left behind is largely negative. The findings also reveal evidence that both sources of selectivity matter, leading studies that fail to adequately address them to misrepresent the impact of migration.Publication What Happens to Diet and Child Health When Migration Splits Households? Evidence from a Migration Lottery Program(2011)The impact of migration on food security and child health is likely to differ depending on whether children themselves migrate or whether they remain behind while other household members migrate. However, existing studies have not been able to examine how impacts differ in these two scenarios because parallel data are required for both the sending and receiving country. Moreover, self-selection into migration makes unbiased estimation of either impact difficult. We overcome these problems by using a unique survey of Tongan households that applied to migrate to New Zealand through a migrant quota which selects households through a random ballot. This survey covers both migrant children in New Zealand and non-migrant children in Tonga, with the migration policy rules providing a source of exogenous variation for identifying impacts. Our estimates of short-run impacts show that diets diverge upon migration: children who migrate experience improvements, while diets worsen for children who remain. There is also suggestive evidence of a divergence in health outcomes, with increases in weight-for-age and height-for-age found for migrant children, and decreases found for children who remain behind while other household members migrate.Publication The Long-term Impacts of International Migration(Published by Oxford University Press on behalf of the World Bank, 2018-02-01)We examine the long-term impacts of international migration by comparing immigrants who had successful ballot entries in a migration lottery program, and first moved almost a decade ago, with people who had unsuccessful entries into those same ballots. The long-term gain in income is found to be similar in magnitude to the gain in the first year despite migrants upgrading their education and changing their locations and occupations. This results in large sustained benefits to their immediate family who have substantially higher consumption, durable asset ownership, savings, and dietary diversity. In contrast we find no measurable impact on extended family.Publication The Long-Term Impacts of International Migration(World Bank, Washington, DC, 2015-11)This study examines the long-term impacts of international migration by comparing immigrants who had successful ballot entries in a migration lottery program, and first moved almost a decade ago, with people who had unsuccessful entries into those same ballots. The long-term gain in income is found to be similar in magnitude to the gain in the first year, despite migrants upgrading their education and changing their locations and occupations. This results in large, sustained benefits to the migrants’ immediate family, who have substantially higher consumption, durable asset ownership, savings, and dietary diversity. In contrast, the study finds no measureable impact on extended family.Publication The Long-Term Impact of International Migration on Economic Decision-Making(World Bank, Washington, DC, 2016-10)This paper studies how migration from a poor to a rich country affects key economic beliefs, preference parameters, and transnational household decision-making efficiency. The setting is the migration of Tongans to New Zealand through a migration lottery program. In a 10-year follow-up survey of individuals applying for this program, the study elicited risk and time preferences and pro-market beliefs. It also linked migrants and potential migrants to a partner household consisting of family members who would stay behind if the migrants moved. Survey participants played lab-in-the-field games designed to measure the degree of intra-family trust and the efficiency of intra-family decision-making. Migration provides a large and permanent positive shock to income, a large change in economic institutions, and a reduction in interactions with partner household members. Despite these changes, the study finds no significant impacts of migration on risk and time preferences, pro-market beliefs, or the decision-making efficiency of transnational households. This stability in the face of such a large and life-changing event lends credence to economic models of migration that treat these determinants of decision-making as time-invariant, and contrasts with recent evidence on preference changes after negative shocks.
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