Abstract
Previous literature has investigated the effect of migration on remaining household members’ consumption or labour supply, but has rarely examined them jointly. When migration increases consumption but reduces leisure time, one needs a specific framework to draw a conclusion about the overall impact on welfare. I propose such a new approach and test its theoretical implications using household panel data from rural Mexico. The results reveal that adjusting for leisure costs reduces the net welfare gain of migration by one fourth relative to what the consumption gain would suggest.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.