Poster Paper: Migration of Whole Households In Response to Sudden and Long Term Environmental Changes

Thursday, November 7, 2013
West End Ballroom A (Washington Marriott)

*Names in bold indicate Presenter

Pratikshya Bohra-Mishra, Princeton University
Migration of Whole Households In Response to Sudden and Long Term Environmental Changes

Using household level panel data from Indonesia, the study investigates the effects of sudden and long-term environmental changes on the probability of migration of whole households across province. The results suggest that temperature may be the main environmental driver of whole household migration, which has significant implications for long run effects of global warming on migration of entire households. Sudden disaster events on the other hand tend to have much smaller impact on such migration. In concurrence with a few existing studies, the study finds a negative effect of disaster on migration. In order to explain this relationship, we test our hypothesis that exposure to natural disasters increases risk-averse behaviour among households, which may influence their migration response. Using household’s participation in the stock market as a measure of their risky behavior, we find that disaster increases risk averse behavior while household’s who are more risk averse are less likely to migrate.