Risk Sharing and Internal Migration

Over 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 dis...

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Bibliographic Details
Main Authors:	De Weerdt, Joachim, Hirvonen, Kalle
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ADULT MORTALITY AGRICULTURAL PRODUCTION ANNUAL GROWTH ATTRITION AVERAGE ANNUAL BORROWING BUDGET CONSTRAINT CASH CROPS CONSUMPTION GROWTH CULTURAL CHANGE DATA SET DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISEASES DISTRICTS ECONOMETRIC ANALYSIS ECONOMETRIC MODELS ECONOMIC DEVELOPMENT ECONOMIC REVIEW ECONOMIC STUDIES EMPIRICAL ANALYSIS EMPIRICAL LITERATURE EXPLANATORY VARIABLES EXTENDED FAMILIES EXTENDED FAMILY FAMILY MEMBERS FINANCIAL SYSTEMS GENDER GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROWTH RATES HEALTH INSURANCE HEALTH RISKS HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD DYNAMICS HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HUMAN DEVELOPMENT IDENTITY ILLNESS IMPERFECT INFORMATION INCOME INCOME SHOCKS INCOMES INEQUALITY INHERITANCE INTERGENERATIONAL MOBILITY INTERNAL MIGRANTS INTERNAL MIGRATION INTERNATIONAL MIGRATION INTERNATIONAL TRADE KINSHIP LABOR MARKET LABOR MIGRATION LABOUR LEVELS OF EDUCATION LONG-RUN GROWTH LOW INCOME MARITAL STATUS MARRIAGES MEAN CONSUMPTION MEASUREMENT ERROR MIGRANT MIGRANTS MIGRATION FLOWS MODERNIZATION MORAL HAZARD MORTALITY NATURAL LOG NATURAL LOGARITHM NEGATIVE EFFECT NEGATIVE SHOCK 0 HYPOTHESIS NUMBER OF HOUSEHOLDS PER CAPITA CONSUMPTION PER CAPITA CONSUMPTION GROWTH POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POLITICAL POWER POPULATION DIVISION POSITIVE IMPACT POVERTY REDUCTION PROGRESS REGRESSION RESULTS REMITTANCE REMITTANCES RESPECT RISK AVERSION RISK SHARING RITUALS RURAL AREAS SMALLHOLDERS SOCIAL AFFAIRS SOCIAL NETWORKS SOCIAL NORMS SOCIAL RESEARCH SOCIAL SCIENCE SOCIETIES SOCIETY SPOUSE TEMPORARY MIGRATION TOTAL CONSUMPTION UNEMPLOYMENT URBAN AREAS URBAN POPULATION URBANIZATION VILLAGES VULNERABILITY WITCHCRAFT
Online Access:	http://documents.worldbank.org/curated/en/2013/04/17648681/risk-sharing-internal-migration http://hdl.handle.net/10986/15571

Description
Summary:	Over 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.

Risk Sharing and Internal Migration

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