Congratulations to NOVAFRICA resident member Jules Gazeaud for his article “On Cash Transfers and Migration: Theory and Evidence from a Randomized Controlled Trial” (joint Eric Mvukiyehe and Olivier Sterck), published at The Review of Economics and Statistics (REStat).
This paper evaluates the impact of a cash-for-work program on migration. Randomly selected households in Comoros were offered up to US$320 in cash in exchange for their participation in public works projects. They found out that the program increased international migration by 38 percent, from 7.8% to 10.8%. The increase in migration appears to be driven by the alleviation of liquidity and risk constraints.