American Economic Journal: Applied Economics
no. 4, October 2023
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.
"Hidden Income and the Perceived Returns to Migration."
American Economic Journal: Applied Economics,
Wage Level and Structure; Wage Differentials
Geographic Labor Mobility; Immigrant Workers
Labor Standards: Labor Force Composition
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics