| Abstract: |
In this paper we study the interrelationship between determinants of
migration, conceived as a family strategy, and the potential impact of having
a migrant household member on people left behind . Labour migration is often
related to poverty but given its lump y-investment nature, poverty may
constitute a motivation to migra te as well as a constraint to do it. We use
cross-sectional house hold data from two rural regions of Bangladesh to test
whether mi gration is a form of income diversification strategy that signifi
cantly influences the risk-taking behaviour of source farm househ olds in
agricultural activities. We account for heterogeneity of migration constraints
differentiating between domestic (temporary and permanent) and international
moving destinations. We find th at richer and large-holder households are more
likely to particip ate in costly high-return migration (i.e. international
migration ) and employ modern technologies, thereby achieving higher produc
tivity. Poorer households, on the other hand, are not able to ove rcome entry
costs of moving abroad and fall back on migration wit h low entry costs, and
low returns (i.e. domestic migration); the latter does not help them to
achieve production enhancements and may act as a poverty-trap locking
households into persistent pov erty. |