Income aspirations, migration, and investments on and off the farm: Evidence from rural Tajikistan

In places with few casual or salaried employment opportunities, investments in farm or non-farm assets may offer the main pathway to increased incomes locally, whereas others may seek alternative investment options elsewhere—as migrants. What factors, then, explain these investment choices? One theo...

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Main Authors: Bloem, Jeffrey R., Lambrecht, Isabel B.
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2023
Subjects:
Online Access:https://hdl.handle.net/10568/140330
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author Bloem, Jeffrey R.
Lambrecht, Isabel B.
author_browse Bloem, Jeffrey R.
Lambrecht, Isabel B.
author_facet Bloem, Jeffrey R.
Lambrecht, Isabel B.
author_sort Bloem, Jeffrey R.
collection Repository of Agricultural Research Outputs (CGSpace)
description In places with few casual or salaried employment opportunities, investments in farm or non-farm assets may offer the main pathway to increased incomes locally, whereas others may seek alternative investment options elsewhere—as migrants. What factors, then, explain these investment choices? One theory suggests that aspirations that are ahead, but not too far ahead, of current levels provide the best incentive for promoting investment. If this theory holds, then estimates of the relationship between the aspirations gap and investment choices should take the form of a non-monotonic inverted U-shape. We test for such a relationship between the income aspirations gap and investments in migration, farm assets, and non-farm assets using data from a household survey in rural Tajikistan. We find evidence of an inverted U-shaped relationship between the income aspirations gap and measures of migration, with the strongest relationship found with international migration. Strikingly, we do not observe any association between the income aspirations gap and measures of investment in farm or non-farm assets. Exploring heterogeneity, we find that these results can vary by household poverty status and by the respondent’s gender. Investigating a possible mechanism, we find that the relationship between the income aspirations gap and migration seems to be driven by remittances, which outweigh migration costs and increase household income.
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spelling CGSpace1403302025-12-02T21:02:52Z Income aspirations, migration, and investments on and off the farm: Evidence from rural Tajikistan Bloem, Jeffrey R. Lambrecht, Isabel B. income gender investment remittances agriculture livelihoods farms migration poverty In places with few casual or salaried employment opportunities, investments in farm or non-farm assets may offer the main pathway to increased incomes locally, whereas others may seek alternative investment options elsewhere—as migrants. What factors, then, explain these investment choices? One theory suggests that aspirations that are ahead, but not too far ahead, of current levels provide the best incentive for promoting investment. If this theory holds, then estimates of the relationship between the aspirations gap and investment choices should take the form of a non-monotonic inverted U-shape. We test for such a relationship between the income aspirations gap and investments in migration, farm assets, and non-farm assets using data from a household survey in rural Tajikistan. We find evidence of an inverted U-shaped relationship between the income aspirations gap and measures of migration, with the strongest relationship found with international migration. Strikingly, we do not observe any association between the income aspirations gap and measures of investment in farm or non-farm assets. Exploring heterogeneity, we find that these results can vary by household poverty status and by the respondent’s gender. Investigating a possible mechanism, we find that the relationship between the income aspirations gap and migration seems to be driven by remittances, which outweigh migration costs and increase household income. 2023-12-07 2024-03-14T12:09:20Z 2024-03-14T12:09:20Z Working Paper https://hdl.handle.net/10568/140330 en https://doi.org/10.1111/agec.12785 https://doi.org/10.1111/ecot.12302 https://doi.org/10.2499/p15738coll2.134858 https://hdl.handle.net/10568/151061 https://doi.org/10.1177/01979183251343885 Open Access application/pdf International Food Policy Research Institute Bloem, Jeffrey R.; and Lambrecht, Isabel. 2023. Income aspirations, migration, and investments on and off the farm: Evidence from rural Tajikistan. IFPRI Discussion Paper 2209. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.137012.
spellingShingle income
gender
investment
remittances
agriculture
livelihoods
farms
migration
poverty
Bloem, Jeffrey R.
Lambrecht, Isabel B.
Income aspirations, migration, and investments on and off the farm: Evidence from rural Tajikistan
title Income aspirations, migration, and investments on and off the farm: Evidence from rural Tajikistan
title_full Income aspirations, migration, and investments on and off the farm: Evidence from rural Tajikistan
title_fullStr Income aspirations, migration, and investments on and off the farm: Evidence from rural Tajikistan
title_full_unstemmed Income aspirations, migration, and investments on and off the farm: Evidence from rural Tajikistan
title_short Income aspirations, migration, and investments on and off the farm: Evidence from rural Tajikistan
title_sort income aspirations migration and investments on and off the farm evidence from rural tajikistan
topic income
gender
investment
remittances
agriculture
livelihoods
farms
migration
poverty
url https://hdl.handle.net/10568/140330
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