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Reprint of: The long-term impact of international migration on economic decision-making: Evidence from a migration lottery and lab-in-the-field experiments

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  • Gibson, John
  • McKenzie, David
  • Rohorua, Halahingano
  • Stillman, Steven

Abstract

We study how migrating from a poor country to a rich country affects economic beliefs, preference parameters, and household decision-making efficiency. In a ten-year follow-up survey of applicants to a migration lottery program we elicit risk and time preferences and pro-market beliefs for the migrants and the unsuccessful applicants. The successful and the unsuccessful applicants are each linked to closest relative households, who would stay in the home country if the applicant moved, to play lab-in-the-field games that measure intra-family trust and the efficiency of intra-family decision-making. Despite the large permanent income shock from migrating, there are no significant impacts on risk and time preferences, pro-market beliefs, or decision-making efficiency of transnational households. This stability in the face of such a large and life-changing event lend credence to economic models of migration that treat these determinants of decision-making as time-invariant.

Suggested Citation

  • Gibson, John & McKenzie, David & Rohorua, Halahingano & Stillman, Steven, 2020. "Reprint of: The long-term impact of international migration on economic decision-making: Evidence from a migration lottery and lab-in-the-field experiments," Journal of Development Economics, Elsevier, vol. 142(C).
    • Handle: RePEc:eee:deveco:v:142:y:2020:i:c:s030438781931329x
    DOI: 10.1016/j.jdeveco.2019.102391
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    More about this item

    Keywords

    Economic beliefs; Household efficiency; Migration; Risk preferences; Trust;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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