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Migration and the labour market impacts of COVID-19

Author

Listed:
  • Nathan Barker
  • Austin Davis
  • Paula López-Peña
  • Harrison Mitchell
  • Mushfiq Mobarak
  • Karim Naguib
  • Maira Emy Reimão
  • Ashish Shenoy
  • Corey Vernot

Abstract

Using detailed microdata, we document how migration-dependent households are especially vulnerable during the COVID-19 pandemic. We create pre- and post-COVID panel datasets for three populations in Bangladesh and Nepal, leveraging experimental and observational variation in prior migration dependence. We report 25 per cent greater declines in earnings and fourfold greater prevalence of food insecurity among migrant households since March. Causes include lower migration rates, less remittance income per migrant, isolation in origin communities, and greater health risks.

Suggested Citation

  • Nathan Barker & Austin Davis & Paula López-Peña & Harrison Mitchell & Mushfiq Mobarak & Karim Naguib & Maira Emy Reimão & Ashish Shenoy & Corey Vernot, 2020. "Migration and the labour market impacts of COVID-19," WIDER Working Paper Series wp-2020-139, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-139
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    References listed on IDEAS

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    1. Gharad Bryan & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2014. "Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh," Econometrica, Econometric Society, vol. 82(5), pages 1671-1748, September.
    2. Michael A. Clemens & Hannah Postel, 2017. "Temporary work visas as US-Haiti development cooperation: a preliminary impact evaluation," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-18, December.
    3. Gottlieb, Charles & Grobovšek, Jan & Poschke, Markus & Saltiel, Fernando, 2021. "Working from home in developing countries," European Economic Review, Elsevier, vol. 133(C).
    4. Fasani, Francesco & Mazza, Jacopo, 2020. "Immigrant Key Workers: Their Contribution to Europe's COVID-19 Response," IZA Policy Papers 155, Institute of Labor Economics (IZA).
    5. David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, June.
    6. Dingel, Jonathan I. & Neiman, Brent, 2020. "How many jobs can be done at home?," Journal of Public Economics, Elsevier, vol. 189(C).
    7. Agha Ali Akram & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2017. "Effects of Emigration on Rural Labor Markets," NBER Working Papers 23929, National Bureau of Economic Research, Inc.
    8. Michele Valsecchi & Ruben Durante, 2020. "Internal migration and the spread of Covid-19," Working Papers w0276, New Economic School (NES).
    9. George J. Borjas & Hugh Cassidy, 2020. "The Adverse Effect of the COVID-19 Labor Market Shock on Immigrant Employment," NBER Working Papers 27243, National Bureau of Economic Research, Inc.
    10. Charles Gottlieb & Jan Grobovsek & Markus Poschke, 2020. "Working from Home across Countries," Cahiers de recherche 07-2020, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    11. Melanie Morten, 2019. "Temporary Migration and Endogenous Risk Sharing in Village India," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 1-46.
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    Citations

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    Cited by:

    1. Francesco Fasani & Jacopo Mazza, 2023. "Being on the Frontline? Immigrant Workers in Europe and the COVID-19 Pandemic," ILR Review, Cornell University, ILR School, vol. 76(5), pages 890-918, October.
    2. Jingyuan Deng & Nelly Elmallakh & Luca Flabbi & Roberta Gatti, 2023. "Labour market impact of the COVID‐19 pandemic in the West Bank and Gaza," LABOUR, CEIS, vol. 37(4), pages 491-518, December.
    3. Lauren Hoehn-Velasco & Adan Silverio-Murillo & Jose Roberto Balmori de la Miyar & Jacob Penglase, 2022. "The impact of the COVID-19 recession on Mexican households: evidence from employment and time use for men, women, and children," Review of Economics of the Household, Springer, vol. 20(3), pages 763-797, September.
    4. Gatto, Marcel, 2021. "Heterogenous Effects of COVID-19 on Rural Livelihoods in Bangladesh: Evidence from a Panel Study," 2021 Conference, August 17-31, 2021, Virtual 315875, International Association of Agricultural Economists.
    5. Chakravorty, Bhaskar & Bhatiya, Apurav Yash & Imbert, Clément & Lohnert, Maximilian & Panda, Poonam & Rathelot, Roland, 2023. "Impact of the COVID-19 crisis on India’s rural youth: Evidence from a panel survey and an experiment," World Development, Elsevier, vol. 168(C).
    6. Marco Cozzani & Peter Fallesen & Giampiero Passaretta & Juho Härkönen & Fabrizio Bernardi, 2024. "The Consequences of the COVID‐19 Pandemic for Fertility and Birth Outcomes: Evidence from Spanish Birth Registers," Population and Development Review, The Population Council, Inc., vol. 50(S1), pages 153-176, July.
    7. Satoshi Shimizutani & Eiji Yamada, 2021. "Resilience against the pandemic: The impact of COVID-19 on migration and household welfare in Tajikistan," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-20, September.
    8. Ahmed Mushfiq Mobarak & Edward Miguel, 2022. "The Economics of the COVID-19 Pandemic in Poor Countries," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 253-285, August.

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    More about this item

    Keywords

    Migration; COVID-19; Panel; Bangladesh; Nepal;
    All these keywords.

    JEL classification:

    • G52 - Financial Economics - - Household Finance - - - Insurance
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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