
doi: 10.1086/687577
handle: 10067/1371990151162165141
Over the past two decades, more than half the population in rural Tanzania migrated within the country, profoundly changing the nature of traditional institutions such as informal risk sharing. Mass internal migration has created geographically disperse networks, on which the authors collected detailed panel data. By quantifying how shocks and consumption co-vary across linked households, they show how migrants unilaterally insure their extended family members at home. This finding contradicts risk-sharing models based on reciprocity, but is consistent with assistance driven by social norms. Migrants sacrifice 3 to 7 percent of their very substantial consumption growth to provide this insurance, which seems too trivial to have any stifling effect on their growth through migration.
Risk, Economics, Social Sciences, Institutions, VILLAGE ECONOMIES, 3801 Applied economics, Population Policies,Consumption,Anthropology,Inequality,Labor Policies, Insurance, Area Studies, WORLD, Tracking data, Business & Economics, 1402 Applied Economics, 4404 Development studies, REMITTANCES, Internal migration, FAMILY, NETWORKS, Africa, TESTS, INFORMAL INSURANCE ARRANGEMENTS, Development Studies, COMMITMENT, Law, BEHAVIOR
Risk, Economics, Social Sciences, Institutions, VILLAGE ECONOMIES, 3801 Applied economics, Population Policies,Consumption,Anthropology,Inequality,Labor Policies, Insurance, Area Studies, WORLD, Tracking data, Business & Economics, 1402 Applied Economics, 4404 Development studies, REMITTANCES, Internal migration, FAMILY, NETWORKS, Africa, TESTS, INFORMAL INSURANCE ARRANGEMENTS, Development Studies, COMMITMENT, Law, BEHAVIOR
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