ABSTRACT
In this study, we aim to estimate the causal effect of income shocks on migration in rural Vietnam. We use rainfall extremes as an exogenous source for income shocks. We find that high rainfall extremes increase income growth of households, while low rainfall extremes reduce their income growth. Using these rainfall extremes as the instrumental variables for income shocks, we find that negative income shocks encourage the migration. Experiencing a decrease in per capita income increases the probability of migration of rural people by 0.06.
Acknowlegements
I would like to express my great thanks to Prof. David Peel and an anonymous reviewer from Applied Economics Letters for their very useful comments on my paper.
Disclosure statement
No potential conflict of interest was reported by the author.
Notes
1 In the 2012 January price.