Coauthors: Joan Monras, Marlon Seror, and Yanos Zylberberg.
Abstract
Migrants around the world leave dependent family members behind to cope with high living costs and restrictive migration policies at destination. Yet these features are absent from standard equilibrium models of migration. Using Chinese data, we develop and estimate a quantitative spatial model in which rural households choose whether to migrate, which members to send, where to go, and how to allocate their consumption across members and locations. We show that the ability to migrate without family is essential to reap the aggregate productivity gains from rural-urban migration. We also evaluate the effect of actual and potential housing and migration policies on migration patterns, productivity, and welfare.