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Place-Based Policies and Migration: Evidence from India

Year: 2024

Type: article

Abstract: Place-based policies may increase migration into eligible areas and, hence, affect their intended aim of reducing economic disparities. Using a regression discontinuity design that exploits an Indian place-based tax-exemption policy, this paper finds that there was an increase in migration for job-related reasons, mainly driven by job transfers. While firm entry and hiring increased in the treated districts, overall employment probability and wages did not change for the average initial resident, although there is some evidence of sectoral shifts in employment. Furthermore, the cost of housing increased in the treated districts. These results provide empirical evidence for the implications of labor mobility for place-based policies.

Source: The World Bank Economic Review

DOI: 10.1093/wber/lhae052

Authors: Ama Baafra Abeberese, Ritam Chaurey, Radhika Menon

Institutions: Wellesley College, Johns Hopkins University School of Advanced International Studies, Stanford University

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, No poverty

Open Access status: green

OpenAlex ID: W4404672089

FWCI: 1.062

Cites: 64

Cited by: 3

Related to: 10