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

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

Open Access
|Sep 2022

Figures & Tables

Table 1

Migrant and non-migrant households

YearNon-migrantMigrantFraction migrant
20101,5132710.152
20111,4463200.181
20121,4383410.192
20131,3293570.212

[i] Notes: Households residing in villages were used in the analysis. Non-migrant refers to households who do not have any migrants in the reference period. Migrant refers to households with at least one migrant in the reference period. Fraction migrant is the fraction of migrant households in the reference period.

Figure 1

Migration by month: year 2010.

Table 2

Patterns of migration

Year(1)
0 to 0
(2)
0 to 1
(3)
1 to 0
(4)
1 to 1
20110.7610.0880.0580.093
20120.7360.0830.0710.110
20130.6990.1070.0900.105

[i] Notes: 1 indicates migrant household; 0 indicates non-migrant household. The columns provide fraction of households that are in the four types of switches. (0 to 1) indicates households that switch from being a non-migrant in the previous year to being migrant in the current year; other switches indicated accordingly.

Table 3

Summary statistics (year 2010)

VariableNon-migrantMigrant
Household size5.076.45
Male fraction0.500.53
Adult fraction0.650.72
Elderly fraction0.070.03
Education years13.3514.50
Wealth 10.290.26
Wealth 20.240.31
Wealth 30.200.25
Wealth 40.160.12
Wealth 50.110.06

[i] Notes: Adult fraction is the fraction of household members in the 18–65 years age group; elderly fraction is the fraction of household members older than 65 years. In all regressions, fraction of children, those below 17 years of age, is the excluded category. Wealth1–Wealth5 refers to quintiles of a wealth index created using principle component analysis from a range of asset indicators for a household.

Table 4

Summary of shocks (2010–2013)

VariableMeanSDMinMax
Drought0.2320.42201
Rain and landslide0.2110.40801
Winter and frost0.3790.48501
Earthquake0.1620.36801
Pest0.1930.39401
Table 5

Correlation between shocks (year 2010)

DroughtRain and landslideWinter and frostEarthquakePest
Drought1.00
Rain and landslide0.001.00
Winter and frost0.140.231.00
Earthquake0.020.260.171.00
Pest0.110.240.250.241.00
Table 6

Migration and shocks

1
b/se
2
b/se
3
b/se
4
b/se
5
b/se
6
b/se
Droughtt−10.038* (0.022)0.040* (0.023)
Rain and landslidet−1−0.002 (0.021)0.009 (0.022)
Winter and frost t−1−0.041** (0.020)−0.045** (0.020)
Earthquake t−1−0.009 (0.028)−0.012 (0.027)
Pest t−10.015 (0.017)0.012 (0.019)
Constant0.164*** (0.023)0.164*** (0.026)0.194*** (0.030)0.136*** (0.024)0.160*** (0.025)0.168*** (0.027)
Observations5,2095,2095,2095,2095,2095,209
Households1,7811,7811,7811,7811,7811,781
Household FEYesYesYesYesYesYes
Year × oblastYesYesYesYesYesYes
Clustered SEYesYesYesYesYesYes

[i] Notes: Migration decision is measured in period t and shocks are measured at time t−1. All regressions include household, year, and year × oblast FE. SE, clustered by community-year, are reported in parenthesis below the estimated coefficients.

[ii] ***, **, and * represent significance at the levels of 0.01, 0.05, and 0.10, respectively.

[iii] FE, fixed effects; SE, standard errors.

Table 7

Migration and shocks with controls

1
b/se
2
b/se
3
b/se
4
b/se
5
b/se
6
Droughtt−10.042* (0.023)0.044* (0.024)
Rain and landslide t−1−0.002 (0.021)0.008 (0.022)
Winter and frost t−1−0.039* (0.022)−0.042* (0.022)
Earthquake t−1−0.006 (0.030)−0.008 (0.029)
Pestt−10.014 (0.019)0.010 (0.020)
Constant−0.371*** (0.101)−0.399*** (0.103)−0.337*** (0.101)−0.399*** (0.102)−0.388*** (0.103)−0.365*** (0.100)
Household size0.045*** (0.010)0.045*** (0.010)0.045*** (0.010)0.045*** (0.010)0.045*** (0.010)0.045*** (0.010)
Male fraction0.085 (0.082)0.084 (0.083)0.088 (0.083)0.083 (0.083)0.082 (0.083)0.087 (0.082)
Adult fraction0.448*** (0.080)0.448*** (0.080)0.440*** (0.079)0.448*** (0.080)0.447*** (0.080)0.439*** (0.079)
Elderly fraction−0.146 (0.105)−0.148 (0.105)−0.139 (0.105)−0.148 (0.105)−0.147 (0.105)−0.136 (0.105)
Education years−0.001 (0.002)−0.001 (0.002)−0.001 (0.002)−0.001 (0.002)−0.001 (0.002)−0.001 (0.002)
Wealth2−0.037** (0.017)−0.036** (0.018)−0.035** (0.018)−0.035** (0.017)−0.035** (0.018)−0.035** (0.017)
Wealth3−0.021 (0.023)−0.020 (0.023)−0.019 (0.023)−0.020 (0.023)−0.019 (0.023)−0.019 (0.023)
Wealth4−0.029 (0.028)−0.027 (0.028)−0.024 (0.028)−0.027 (0.028)−0.027 (0.028)−0.025 (0.027)
Wealth5−0.003 (0.037)−0.001 (0.037)0.001 (0.036)−0.001 (0.037)0.000 (0.037)−0.001 (0.036)
Observations5,0515,0515,0515,0515,0515,051
Households1,7811,7811,7811,7811,7811,781
Household FEYesYesYesYesYesYes
Year × oblastYesYesYesYesYesYes
Clustered SEYesYesYesYesYesYes

[i] Notes: Migration decision is measured in period t and shocks are measured at time t − 1. All regressions include household, year, and year × oblast FE. SE, clustered by community-year, are reported in parenthesis below the estimated coefficients.

[ii] ***, **, and * represent significance at the levels of 0.01, 0.05, and 0.10, respectively.

[iii] FE, fixed effects; SE, standard errors.

Table 8

Shocks and decision to recall and send migrants

Recall
b/se
Send
b/se
Droughtt−1−0.066 (0.072)0.053** (0.021)
Rain and landslidet−1−0.101 (0.064)0.025 (0.019)
Winter and frostt−10.146 (0.103)−0.004 (0.017)
Earthquaket−10.016 (0.087)−0.008 (0.022)
Pestt−1−0.023 (0.083)−0.006 (0.019)
Constant1.318*** (0.389)−0.164* (0.085)
Observations8914,160
Households5231,668
Household FEYesYes
Year × oblastYesYes
Clustered SEYesYes

[i] Notes: Migration decision is measured in period t and shocks are measured at time t − 1. All regressions include household, year, and year × oblast FE and all household control variables included in Table 7. SE, clustered by community-year, are reported in parenthesis below the estimated coefficients.

[ii] ***, **, and * represent significance at the levels of 0.01, 0.05, and 0.10, respectively.

[iii] FE, fixed effects; SE, standard errors.

Table 9

Hours spent on activities per day in colder vis-à-vis other months

ActivityMeanSDP10P90
Housing/repairNon-winter1.91.11.03.5
Winter2.82.01.05.5
Eat/sleep/laundryNon-winter5.23.41.59.5
Winter5.23.41.59.5

[i] Notes: Estimates using Time-Use section of the LiK survey conducted between November 1, 2013 and January 30, 2014. Winter refers to period between mid-December and January. Non-winter refers to period between November and mid-December. P10 and P90 refer to the 10th and 90th percentiles of the distribution.

Table 10

Migration, informal finance and shocks

1
b/se
2
b/se
3
b/se
4
b/se
5
b/se
Easyfin0.126 (0.121)0.082 (0.126)0.012 (0.144)0.117 (0.116)0.019 (0.134)
Droughtt−10.183** (0.077)
Easyfin × droughtt−1−0.346** (0.165)
Rain and landslidet−10.091 (0.093)
Easyfin × rain and landslidet−1−0.215 (0.199)
Winter and frostt−1−0.051 (0.067)
Easyfin × winter and frostt−10.028 (0.143)
Earthquaket−10.176** (0.087)
Easyfin × earthquaket−1−0.431** (0.192)
Pestt−1−0.009 (0.057)
Easyfin × pestt−10.060 (0.143)
Observations5,0515,0515,0515,0515,051
Households1,7811,7811,7811,7811,781
Household FEYesYesYesYesYes
Year × oblastYesYesYesYesYes
Clustered SEYesYesYesYesYes

[i] Notes: Migration decision is measured in period t and shocks are measured at time t − 1. All regressions include household, year, and year × oblast FE and all household control variables included in Table 7. SE, clustered by community-year, are reported in parenthesis below the estimated coefficients.

[ii] ***, **, and * represent significance at the levels of 0.01, 0.05, and 0.10, respectively.

[iii] FE, fixed effects; SE, standard errors.

Table A1

Migration and shocks: village versus city

1
b/se
2
b/se
b/seb/seb/se
Droughtt−10.041* (0.022)
City × droughtt−1−0.014 (0.035)
Rain and landslide0.001 (0.022)
City × rain and landslidet−10.003 (0.045)
Winter and frostt−1−0.026 (0.020)
City × winter and frostt−10.028 (0.029)
Earthquake t−1−0.018 (0.028)
City × earthquaket−10.027 (0.041)
Pestt−10.015 (0.018)
City × pestt−1−0.022 (0.052)
City significance test
Ho: shock + city × shock=0AcceptAcceptAcceptAcceptAccept
Observations8,3478,3478,3478,3478,347
Households2,9762,9762,9762,9762,976
Household FEYesYesYesYesYes
Year × oblastYesYesYesYesYes
Clustered SEYesYesYesYesYes

[i] Notes: Migration decision is measured in period t and shocks are measured at time t − 1. Information on households residing in villages and cities is provided in the data. All regressions include household, year, and year × oblast FE and all household control variables included in Table 7. SE, clustered by community-year, are reported in parenthesis below the estimated coefficients.

[ii] ***, **, and * represent significance at the levels of 0.01, 0.05, and 0.10, respectively.

[iii] FE, fixed effects; SE, standard errors.

Language: English
Accepted on: Jun 11, 2022
Published online: Sep 13, 2022
Published in print: Jan 1, 2022
Published by: Sciendo
In partnership with: Paradigm Publishing Services
JEL:

© 2022 Tanika Chakraborty, Manish Pandey, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 License.