Household Income, Migration Networks, and Migration Decisions

This paper analyzes a rich dataset from a nationally representative Nepalese household survey to study household migration decisions considering household per capita income and migration networks. The study highlights three key takeaways: (i) households with higher per capita income are less likely to migrate; (ii) households with more extensive migration networks are more likely to migrate; and (iii) migration networks have a greater influence than income on migration decisions. These findings hold across different model specifications that address potential endogeneity issues and apply to both extensive and intensive margins of migration. The results have important policy implications for Nepal, a country with high levels of temporary international migration and significant remittance inflows. The findings, unexplored hitherto, highlight an important issue relevant to other countries with similar economic, social, and cultural characteristics and large migrant populations.