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After the Flood: Migration and Remittances as Coping Strategies of Rural Bangladeshi Households

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  • Gianna Claudia Giannelli
  • Eugenia Canessa

Abstract

Using georeferenced data to map the dramatic flood that hit Bangladesh in August–September 2014, we evaluate how rural households coped with this natural shock. Employing survey data on panel households for the period before and after the shock, we estimate a difference-in-difference model with fixed effects of the impact of flooding on income, expenditure, nutrition, and migration outcomes along the wealth distribution. Our results show that the most affected households experienced significant drops in income and expenditure and an increase in the probability of migrating as a coping strategy to compensate for this loss. Internal migration increased by 7 percentage points for low-wealth households, while international migration increased by 3 percentage points for high-wealth households. Remittances received by poorer households from established international migrants represented significant monetary support after the shock, amounting to approximately 40% of the decline in income from self-employment in farm activities and half the decline in food expenditure.

Suggested Citation

  • Gianna Claudia Giannelli & Eugenia Canessa, 2022. "After the Flood: Migration and Remittances as Coping Strategies of Rural Bangladeshi Households," Economic Development and Cultural Change, University of Chicago Press, vol. 70(3), pages 1159-1195.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/713939
    DOI: 10.1086/713939
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    Cited by:

    1. Hossain, Marup & Mullally, Conner & Mabiso, Athur, 2024. "Occupational and asset adjustments in Tamil Nadu, India: The role of a finance and rebuilding program," World Development, Elsevier, vol. 177(C).
    2. Afridi, Farzana & Mahajan, Kanika & Sangwan, Nikita, 2022. "The gendered effects of droughts: Production shocks and labor response in agriculture," Labour Economics, Elsevier, vol. 78(C).
    3. Rosa Weber & Douglas S. Massey, 2023. "Assessing the Effect of Increased Deportations on Mexican Migrants’ Remittances and Savings Brought Home," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(2), pages 1-27, April.
    4. Chakraborty Tanika & Pandey Manish, 2022. "Temporary international migration, shocks and informal finance: analysis using panel data," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 13(1), pages 1-19, January.
    5. Randazzo, Teresa & Pavanello, Filippo & De Cian, Enrica, 2023. "Adaptation to climate change: Air-conditioning and the role of remittances," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    6. Ablam Estel Apeti, 2022. "Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries," Post-Print hal-03819779, HAL.
    7. Apeti, Ablam Estel, 2023. "Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries," World Development, Elsevier, vol. 161(C).

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