Hidden Income and the Perceived Returns to Migration

Author:

Baseler Travis1

Affiliation:

1. University of Rochester, Department of Economics (email: )

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, 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 percent over two years. (JEL C93, J31, J61, J82, O15, O18, R23)

Publisher

American Economic Association

Subject

General Economics, Econometrics and Finance

Cited by 4 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

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