De Weerdt, JoachimHirvonen, Kalle2013-09-042013-09-042013-04https://hdl.handle.net/10986/15571Over the past two decades, more than half the population in rural Tanzania migrated within the country, profoundly changing the nature of traditional institutions such as informal risk sharing. Mass internal migration has created geographically disperse networks, on which the authors collected detailed panel data. By quantifying how shocks and consumption co-vary across linked households, they show how migrants unilaterally insure their extended family members at home. This finding contradicts risk-sharing models based on reciprocity, but is consistent with assistance driven by social norms. Migrants sacrifice 3 to 7 percent of their very substantial consumption growth to provide this insurance, which seems too trivial to have any stifling effect on their growth through migration.en-USCC BY 3.0 IGOADULT MORTALITYAGRICULTURAL PRODUCTIONANNUAL GROWTHATTRITIONAVERAGE ANNUALBORROWINGBUDGET CONSTRAINTCASH CROPSCONSUMPTION GROWTHCULTURAL CHANGEDATA SETDEPENDENT VARIABLEDESCRIPTIVE STATISTICSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISEASESDISTRICTSECONOMETRIC ANALYSISECONOMETRIC MODELSECONOMIC DEVELOPMENTECONOMIC REVIEWECONOMIC STUDIESEMPIRICAL ANALYSISEMPIRICAL LITERATUREEXPLANATORY VARIABLESEXTENDED FAMILIESEXTENDED FAMILYFAMILY MEMBERSFINANCIAL SYSTEMSGENDERGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM MODELSGROWTH RATESHEALTH INSURANCEHEALTH RISKSHOUSEHOLD CHARACTERISTICSHOUSEHOLD CONSUMPTIONHOUSEHOLD DYNAMICSHOUSEHOLD LEVELHOUSEHOLD MEMBERSHOUSEHOLD SIZEHOUSEHOLD SURVEYHUMAN DEVELOPMENTIDENTITYILLNESSIMPERFECT INFORMATIONINCOMEINCOME SHOCKSINCOMESINEQUALITYINHERITANCEINTERGENERATIONAL MOBILITYINTERNAL MIGRANTSINTERNAL MIGRATIONINTERNATIONAL MIGRATIONINTERNATIONAL TRADEKINSHIPLABOR MARKETLABOR MIGRATIONLABOURLEVELS OF EDUCATIONLONG-RUN GROWTHLOW INCOMEMARITAL STATUSMARRIAGESMEAN CONSUMPTIONMEASUREMENT ERRORMIGRANTMIGRANTSMIGRATION FLOWSMODERNIZATIONMORAL HAZARDMORTALITYNATURAL LOGNATURAL LOGARITHMNEGATIVE EFFECTNEGATIVE SHOCK0 HYPOTHESISNUMBER OF HOUSEHOLDSPER CAPITA CONSUMPTIONPER CAPITA CONSUMPTION GROWTHPOLICY DISCUSSIONSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL ECONOMYPOLITICAL POWERPOPULATION DIVISIONPOSITIVE IMPACTPOVERTY REDUCTIONPROGRESSREGRESSION RESULTSREMITTANCEREMITTANCESRESPECTRISK AVERSIONRISK SHARINGRITUALSRURAL AREASSMALLHOLDERSSOCIAL AFFAIRSSOCIAL NETWORKSSOCIAL NORMSSOCIAL RESEARCHSOCIAL SCIENCESOCIETIESSOCIETYSPOUSETEMPORARY MIGRATIONTOTAL CONSUMPTIONUNEMPLOYMENTURBAN AREASURBAN POPULATIONURBANIZATIONVILLAGESVULNERABILITYWITCHCRAFTWorld Bank10.1596/1813-9450-6429