Replication data for: Networks and Misallocation: Insurance, Migration, and the Rural-Urban Wage Gap
Principal Investigator(s): View help for Principal Investigator(s) Kaivan Munshi; Mark Rosenzweig
Version: View help for Version V1
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Project Citation:
Munshi, Kaivan, and Rosenzweig, Mark. Replication data for: Networks and Misallocation: Insurance, Migration, and the Rural-Urban Wage Gap. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E112956V1
Project Description
Summary:
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We provide an explanation for the large spatial wage disparities and low male migration in India based on the trade-off between consumption smoothing, provided by caste-based rural insurance networks, and the income gains from migration. Our theory generates two key empirically verified predictions: (i) males in relatively wealthy households within a caste who benefit less from the redistributive (surplus-maximizing) network will be more likely to migrate, and (ii) males in households facing greater rural income risk (who benefit more from the insurance network) migrate less. Structural estimates show that small improvements in formal insurance decrease the spatial misallocation of labor by substantially increasing migration. (JEL G22, J31, J61, O15, O18, R23, Z13)
Scope of Project
JEL Classification:
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G22 Insurance; Insurance Companies; Actuarial Studies
J31 Wage Level and Structure; Wage Differentials
J61 Geographic Labor Mobility; Immigrant Workers
O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
G22 Insurance; Insurance Companies; Actuarial Studies
J31 Wage Level and Structure; Wage Differentials
J61 Geographic Labor Mobility; Immigrant Workers
O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
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