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Abstract In many developing economies, urban workers earn substantially more than rural workers with the same level of education. Why don't more rural workers migrate to cities? I use two field experiments in Kenya to show that low migration is partly due to underestimation of urban incomes, and that this inaccurate information can be sustained by migrants' strategic motives to hide income to minimize remittance obligations. Parents underestimate their migrant children's incomes by nearly half, and underestimation is greater when a migrant's incentive to hide income is higher. Providing information about urban earnings increases migration to the capital city by 39% over two years. In many developing economies, urban workers earn substantially more than rural workers with the same level of education. Why don't more rural workers migrate to cities? I use two field experiments in Kenya to show that low migration is partly due to underestimation of urban incomes, which is sustained by income hiding by migrants. Parents at the origin underestimate their migrant children's incomes by nearly half, and underestimation is greater when a migrant's remittance obligations are high. Providing information about urban earnings increases migration to the capital city by about 40% over two years.
Last Published January 24, 2021 10:40 PM July 25, 2022 12:02 PM
Study Withdrawn No
Intervention Completion Date December 31, 2018
Data Collection Complete Yes
Final Sample Size: Number of Clusters (Unit of Randomization) Intervention 1: 497 households. Intervention 2: 4,994 households. Intervention 1: 249 control households, 248 treatment households. Intervention 2: 1,588 placebo households, 841 pure control households, 2,565 treatment households.
Was attrition correlated with treatment status? No
Public Data URL https://doi.org/10.3886/E176081V1
Is there a restricted access data set available on request? No
Program Files Yes
Program Files URL https://doi.org/10.3886/E176081V1
Data Collection Completion Date September 30, 2019
Is data available for public use? Yes
Intervention End Date April 20, 2018 December 31, 2018
Primary Outcomes (End Points) Intervention 1: Beliefs about the returns to migration, probability of migrating within the year following the intervention, employment, income, self-reported welfare. Intervention 2: Beliefs about average earnings in Nairobi (unconditional and for migrants), beliefs about the returns to migration, likelihood of migrating within the next year. Intervention 1: Beliefs about the returns to migration, probability of migrating within the year following the intervention, employment, income, self-reported welfare. Intervention 2: Beliefs about own potential earnings in Nairobi, beliefs about average earnings of migrants in Nairobi.
Primary Outcomes (Explanation) I have two measures of migration after the intervention for each of the following destination types: any destination, Nairobi, Kisumu, Eldoret, other urban destination, and other rural destination. The two measures are 1.) whether the household sent at least one migrant to that destination after the intervention, and 2.) the number of migrants the household sent to that destination after the intervention. Income will be measured as the sum of individual wage and enterprise income across family members (as defined by the household roster collected at baseline) plus estimated agricultural output (farm-gate value estimated by the household head). Migration outcomes will be measured as the number of migrants the household sent to a given destination after the intervention, for each of the following destination types: any destination, Nairobi, Kisumu, Eldoret, other urban destination, and other rural destination. There are two types of migration measures: cumulative (any migration after the treatment, including return migrants) and status at the time of the survey (only includes current migrants). Income will be measured as the sum of individual wage and enterprise income across family members (as defined by the household roster collected at baseline) plus estimated agricultural output (farm-gate value estimated by the household head).
Randomization Method Treatment status was assigned by a random number generator. Treatment status was assigned on-the-ground by a random number generator.
Planned Number of Clusters Intervention 1: 497 households. Intervention 2: 340 households. Intervention 1: 497 households. Intervention 2: 340 households, scaled-up to 4,994 households.
Keyword(s) Labor, Other Labor, Other
Secondary Outcomes (End Points) Intervention 1: Remittances, savings, spending on food, investment, whether the household experienced a financial emergency in the past 3 months, whether the household is worried about their finances, and whether the household could cope with a financial shock of 2000 KES. Intervention 2: Expected share of remittances for the marginal migrant from that household. Intervention 1: Remittances, savings, spending on food, whether the household is worried about their finances, mental health index.
Building on Existing Work No
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