Within-Household Migration Decision: Relative Measures and Risk Preferences of Other Household Members
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | |
|---|---|---|---|---|---|---|---|---|---|---|
| wtRisk | 0.005*** | 0.009*** | 0.003* | 0.005*** | 0.009*** | 0.003* | 0.005*** | |||
| (0.002) | (0.002) | (0.002) | (0.002) | (0.002) | (0.002) | (0.002) | ||||
| wtRisk_oth: avg wtRisk of other HH members | −0.000 | −0.006*** | −0.006*** | |||||||
| (0.002) | (0.002) | (0.002) | ||||||||
| wtRisk_rel: ranking in HH normalized | 0.070*** | 0.055*** | 0.053*** | |||||||
| (0.018) | (0.020) | (0.020) | ||||||||
| wtRisk_rel: dummy for highest wtRisk in HH | 0.016** | 0.014* | 0.011 | |||||||
| (0.008) | (0.008) | (0.008) | ||||||||
| Individual and HH controls | X | X | X | X | X | X | X | X | X | X |
| HH wtRisk measures | Only HH Members in Labor Force | All HH Members | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Observations | 5,992 | 5,992 | 5,992 | 5,992 | 5,992 | 5,992 | 5,992 | 5,992 | 5,992 | 5,992 |
| R-squared | 0.310 | 0.310 | 0.311 | 0.309 | 0.310 | 0.309 | 0.311 | 0.311 | 0.311 | 0.310 |
Notes: The table reports the estimates from LPM regressions of a dummy for individual migration status (in the previous year) on different measures of willingness to take risks (at both the individual and household level) and other controls. In Columns 2–3 and 8, we include the average risk preferences of the other household members (wtRisk_oth). In Columns 4–7 and 9–10, we include two alternative measures of the individual’s position in the household ranking of willingness to take risk (yvtRisk_rel) (i) individual ranking in risk attitudes within the household, obtained by ranking household members by their willingness to take risks, assigning a value of one to the most risk-averse person and progressively higher values to the other members, and then normalizing this measure by the number of members reporting risk preferences (Columns 4–5 and 9); (ii) an indicator for the individual having the highest willingness to take risks in the household (Columns 6–7 and 10). The measures of willingness to take risks relative to the household (wtRisk_oth and wtRisk_rel) are computed using only household members in the labor force (that is, aged between 16 and 60 and not currently in school or disabled) in Columns 1–7, and all household members in Columns 8–10. Individual and HH controls: age, age-squared, a dummy for male, years of education, a dummy for married, relation with HH head dummies, order of birth, number of siblings, and number of children; household size and structure (number of family members under 16, in the labor force, and older than 60); and per capita house value (in logs). All specifications include county fixed effects. The sample includes all individuals in the labor force (that is, aged 16–60 and not currently in school or disabled) who live in households in which more than one member in the labor force has reported risk attitudes. Robust standard errors are clustered at the household level and reported in brackets.
↵* p < 0.1,
↵** p < 0.05,
↵*** p < 0.01.