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Founded in 1920, the NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, and business professionals.

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Untangling the links between poverty, hunger, and migration in Bangladesh

By Shawn Thacker June 22, 2021 Share this with FacebookShare this with TwitterShare this with LinkedInShare this with EmailPrint this Photo by Creative Kayes, Shutterstock To cope with seasonal poverty and unexpected shocks such as floods or illnesses, rural residents in poor agricultural communities in Bangladesh often share resources with each other or migrate to urban areas in search of work. A new study led by Yale economists explores how these coping strategies are related, and how encouraging more migration affects the entire community’s welfare. For the study, the authors combined an experiment in which some community members were provided a subsidy to cover the cost of travel with a model of the complex interactions between informal insurance networks and migration choices. They found that the distribution of migration subsidies to some individuals increased informal risk-sharing (i.e. sharing money, food, or other resources with community members in times of need) in villages, and had positive spillover effects on other members of the community.