Migration, Sorting and Regional Inequality : Evidence from Bangladesh

Using household level data from Bangladesh, this paper examines the differences in the rates of return to household attributes over the entire welfare distribution. The empirical evidence uncovers substantial differences in returns between an integ...

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Bibliographic Details
Main Author:	Shilpi, Forhad
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO MARKET ACCESS TO MARKETS ADULT MALE AGRICULTURAL ACTIVITIES AGRICULTURAL EMPLOYMENT BANKS BETTER ACCESS TO MARKETS BIASES COMMERCIAL BANK COMMUNITY SURVEYS CONSUMPTION EXPENDITURE CREDIT CONSTRAINT CULTURAL BARRIERS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT ISSUES DEVELOPMENT RESEARCH DURABLE DURABLE GOODS EARNINGS ECONOMIC ACTIVITIES ECONOMIC GROWTH ECONOMIC REVIEW EDUCATION LEVEL EDUCATION LEVELS EDUCATIONAL ATTAINMENT ENDOWMENTS ENTRY BARRIER EXPENDITURE EXPENDITURE LEVEL EXPENDITURES EXTREME POVERTY FEDERAL RESERVE FEDERAL RESERVE BANK FLOW OF MIGRANTS FOOD EXPENDITURE GENDER GROWTH IN POPULATION HIGH SCHOOL EDUCATION HIGHER INCIDENCE OF POVERTY HOUSEHOLD ASSETS HOUSEHOLD CHARACTERISTICS HOUSEHOLD EXPENDITURE HOUSEHOLD HEAD HOUSEHOLD LEVEL HOUSEHOLD LEVEL DATA HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLDS HUMAN CAPITAL IMPORTANT POLICY INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INDIVIDUAL LEVEL INEQUALITY INFRASTRUCTURE DEVELOPMENT INTERNAL MIGRATION INTERNATIONAL BANK INTERNATIONAL TRADE INVESTING LABOR FORCE LABOR MARKET LABOR MARKETS LABOR MOBILITY LACK OF ACCESS LEVEL OF EDUCATION LIQUID ASSETS LIVING STANDARDS MARKET ACCESS MIGRANT MIGRANTS MIGRATION MIGRATION FLOW MIGRATION FLOWS NON-FOOD EXPENDITURE OPPORTUNITY COSTS PER CAPITA CONSUMPTION PHYSICAL CAPITAL POLICY IMPLICATIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POOR POOR AREAS POOR INFRASTRUCTURE POOR PEOPLE POPULATION CENSUS POVERTY ASSESSMENT POVERTY LINE POVERTY LINES PRIMARY EDUCATION PROGRESS PUBLIC GOODS QUALITY OF LIFE RATE OF POPULATION GROWTH RATE OF RETURN RATES OF RETURN RATES OF RETURNS REGIONAL DIFFERENCES REGIONAL DUMMIES REGIONAL DUMMY REGIONAL PRICE INDEX REMITTANCE REMITTANCES RURAL RURAL AREA RURAL AREAS RURAL DEVELOPMENT RURAL DIFFERENCES RURAL EMPLOYMENT RURAL GAP RURAL GAPS RURAL INEQUALITY RURAL POPULATION SCHOOL QUALITY SECONDARY DEGREE SECONDARY EDUCATION SELF-EMPLOYMENT SKILLED WORKERS SPOUSE STANDARD ERRORS TEMPORARY MIGRATION TRADING TRANSPORTATION UNEMPLOYMENT URBAN AMENITIES URBAN AREA URBAN AREAS URBAN CENTERS URBAN DEVELOPMENT URBAN HOUSEHOLDS URBAN MIGRATION URBAN POPULATION URBANIZATION UTILITY FUNCTION UTILITY LEVEL VALUATION WELFARE DISTRIBUTION WELFARE LEVELS
Online Access:	http://documents.worldbank.org/curated/en/2008/05/9422032/migration-sorting-regional-inequality-evidence-bangladesh http://hdl.handle.net/10986/6714

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Summary:	Using household level data from Bangladesh, this paper examines the differences in the rates of return to household attributes over the entire welfare distribution. The empirical evidence uncovers substantial differences in returns between an integrated region contiguous to the country's main growth centers, and a less integrated region cut-off from those centers by major rivers. The evidence suggests that households with better observed and unobserved attributes (such as education and ability) are concentrated in the integrated region where returns are higher. Within each region, mobility of workers seems to equalize returns at the lower half of the distribution. The natural border created by the rivers appears to hinder migration, causing returns differences between the regions to persist. To reduce regional inequality in welfare in Bangladesh, the results highlight the need for improving connectivity between the regions, and for investing in portable assets of the poor (such as human capital).

Migration, Sorting and Regional Inequality : Evidence from Bangladesh

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