Discussion paper
DP18418 Floating population: migration with(out) family and the spatial distribution of economic activity
An important but under-explored aspect of migration is the decision to leave dependent family members behind. Using Chinese data, we develop and estimate a quantitative spatial model in which rural workers choose whether to migrate, whether to bring their family, where to go, and how to allocate their consumption across household members and locations. The general-equilibrium model shows that spatial differences in living costs between origins and destinations, as well as across destinations, are key to understanding non-family migration and the rise of mega-cities. These differences induce migrants to leave family behind, move to unwelcoming, high-cost cities and remit generously.
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