RT Journal Article
SR Electronic
T1 Risk Attitudes and Household Migration Decisions
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 112
OP 145
DO 10.3368/jhr.58.3.1019-10513R1
VO 58
IS 1
A1 Christian Dustmann
A1 Francesco Fasani
A1 Xin Meng
A1 Luigi Minale
YR 2023
UL http://jhr.uwpress.org/content/58/1/112.abstract
AB We analyze the relation between risk attitudes and household migration decisions. Using data of rural-urban migrants in China and their family members left behind, we obtain three key findings: (i) conditional on migration gains, less risk-averse individuals are more likely to migrate; (ii) conditional on own risk aversion, individuals are more likely to migrate the higher the risk aversion of the other household members; and (iii) conditional on average risk aversion, households with more dispersed risk preferences are more likely to send migrants. These findings are in line with a stylized model that we develop. Our results provide evidence that the distribution of risk attitudes within the household affects whether a migration takes place and who will emigrate. They also suggest that the risk diversification gain to other household members may lead to migrations that would not take place when decisions were made at the individual level.