TY  - CPAPER 
AB  - We explore the impact of flooding on migration in Bangladesh and examine whether migration responses are mitigated by access to credit. Using unique data from a household survey conducted in rural Bangladesh shortly after the 1998 flood, we estimate the effect of flooding on both permanent and temporary migration. We utilize a difference-in-differences approach that relies on randomized early access to microfinance. Flood exposure is based on village-level reports of flood intensity, which can be treated as exogenous to individual households. We find that flooding led to increased temporary migration, with no effect on permanent migration. Moreover, access to credit several years earlier fully mitigates the migration effect, suggesting that credit access allows farmers to cope with severe climate events without having to migrate. Our study thus provides an important contribution to the broader literature on climate change adaptation, by demonstrating that relieving credit constraints could enhance local livelihood strategies during environmental hazards, without deterring gradual permanent migration away from vulnerable areas.
AU  - Chen, Joyce
AU  - Flatnes, Jon
DA  - 2019-11-15
DA  - 2019-11-15
DO  - 10.22004/ag.econ.296671
DO  - doi
ID  - 296671
KW  - Community/Rural/Urban Development
KW  - Environmental Economics and Policy
KW  - migration
KW  - credit
KW  - natural hazards
L1  - https://ageconsearch.umn.edu/record/296671/files/11.%20Chen_Flatnes%20Manuscript.pdf
L2  - https://ageconsearch.umn.edu/record/296671/files/11.%20Chen_Flatnes%20Manuscript.pdf
L4  - https://ageconsearch.umn.edu/record/296671/files/11.%20Chen_Flatnes%20Manuscript.pdf
LA  - eng
LA  - English
LK  - https://ageconsearch.umn.edu/record/296671/files/11.%20Chen_Flatnes%20Manuscript.pdf
N2  - We explore the impact of flooding on migration in Bangladesh and examine whether migration responses are mitigated by access to credit. Using unique data from a household survey conducted in rural Bangladesh shortly after the 1998 flood, we estimate the effect of flooding on both permanent and temporary migration. We utilize a difference-in-differences approach that relies on randomized early access to microfinance. Flood exposure is based on village-level reports of flood intensity, which can be treated as exogenous to individual households. We find that flooding led to increased temporary migration, with no effect on permanent migration. Moreover, access to credit several years earlier fully mitigates the migration effect, suggesting that credit access allows farmers to cope with severe climate events without having to migrate. Our study thus provides an important contribution to the broader literature on climate change adaptation, by demonstrating that relieving credit constraints could enhance local livelihood strategies during environmental hazards, without deterring gradual permanent migration away from vulnerable areas.
PY  - 2019-11-15
PY  - 2019-11-15
T1  - Credit Access, Migration, and Climate Change Adaptation in Rural Bangladesh
TI  - Credit Access, Migration, and Climate Change Adaptation in Rural Bangladesh
UR  - https://ageconsearch.umn.edu/record/296671/files/11.%20Chen_Flatnes%20Manuscript.pdf
Y1  - 2019-11-15
ER  -