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<p>We examine households’ temporary international migration response when faced with shocks in rural Kyrgyzstan. Using a household fixed effects model, we find that while a drought shock increases migration, a winter shock reduces migration. We argue that this difference is because of the trade-off between two effects of a shock for a household: loss of income and increase in the need for labor services. Migration increases when the former effect of a shock dominates and it reduces when the latter effect dominates. We explore these mechanisms further, and find that when households have easier access to informal finance the migration response is muted only for shocks for which the adverse income effect dominates. These findings provide evidence in favor of our proposed mechanisms through which shocks affect migration.</p>
</abstract>

We examine households’ temporary international migration response when faced with shocks in rural Kyrgyzstan. Using a household fixed effects model, we find that while a drought shock increases migration, a winter shock reduces migration. We argue that this difference is because of the trade-off between two effects of a shock for a household: loss of income and increase in the need for labor services. Migration increases when the former effect of a shock dominates and it reduces when the latter effect dominates. We explore these mechanisms further, and find that when households have easier access to informal finance the migration response is muted only for shocks for which the adverse income effect dominates. These findings provide evidence in favor of our proposed mechanisms through which shocks affect migration.

Temporary international migration, shocks and informal finance: analysis using panel data

IZA Journal of Development and Migration

This work is licensed under the Creative Commons Attribution 4.0 International License.

We examine households’ temporary international migration response when faced with shocks in rural Kyrgyzstan. Using a household fixed effects model, we find...

Temporary international migration, shocks and informal finance: analysis using panel data

Published Online: Sep 13, 2022

Page range: -

Accepted: Jun 11, 2022

DOI: https://doi.org/10.2478/izajodm-2022-0008

Keywords
temporary migration, shocks, insurance, informal finance, Asia, Kyrgyzstan

© 2022 Tanika Chakraborty et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Temporary international migration, shocks and informal finance: analysis using panel data

Published Online: Sep 13, 2022

Page range: -

Accepted: Jun 11, 2022

DOI: https://doi.org/10.2478/izajodm-2022-0008

Keywordstemporary migration, shocks, insurance, informal finance, Asia, Kyrgyzstan

© 2022 Tanika Chakraborty et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
temporary migration, shocks, insurance, informal finance, Asia, Kyrgyzstan