Abstract

A key, yet underexplored, dimension of migration patterns is the decision to bring dependent family members. We develop and estimate, using Chinese data, a quantitative spatial model in which rural workers choose whether, how (with their family or not), and where to migrate, and how to allocate their consumption across household members and across space. The general-equilibrium model rationalizes the fact that rural migrants disproportionately move to expensive, unwelcoming cities, live without their family, and send back remittances. We quantify the role of migration frictions (e.g., Hukou policies) in explaining these patterns and show that, by changing the relative value of consumption across space, they contribute to the rise of non-family migration and the emergence of mega-cities.

Co-authors: Joan Monras, Marlon Seror and Yanos Zylberberg