Rural-urban migration and family ties: an analysis of family considerations in migration behaviour in India

The importance of family considerations in mobility decisions of rural to urban migrants in India was investigated by analyzing evidence on urban rural ties. The empirical basis was a survey of migrant heads of households in Delhi conducted from October 1975 to April 1976. Only 14% of the migrants in the sample were accompanied by family members when they moved to Delhi, and at the time of the survey 44% of the sample were living on their own as nonfamilial households. 82% of the migrants reported having family members living in the area. In 1/3 of these cases the rural household contained the wife of the migrant. Over 3/4 of the sample visited their origin regularly, and 2/3 were sending money. Migration decisions are discussed in the context of the mutlicentered family, and urban rural family links are classified into several distinct types, and the importance of visits and remittances to origin for each of these types are investigated. An econometric analysis of conjugal separation is presented, and the determinants of remittances are investigated. The salient methodological innovations are a 7-part typology of urban rural familial links and the use of logit analysis in the identification of the important determinants of conjugal separation. Nearly 4/5 of the migrants visited their place of origin. The proportion reporting visits was higher for migrants who had family members at place of origin, but as many as 60% of the migrants not having family links maintained contact with rural residents through visits. If migrants recognized mutual kinship rights and obligations dictated by the social system, they maintained close functional ties with their kin. Only 56% of unmarried migrants living as nonfamilial units reported visits to origin compared to 92% of those living with their nuclear unit. For migrants who reported presence of family members at origin, there was no significant difference between landowners and nonlandowners in the proportion who reported visits. Married migrants who had left their wives in the rural area were more likely to visit origin during the agricultural busy periods. A majority of the migrants maintained economic links with the rural area, and in early all these cases financial flows were from the urban to the rural area. Remittances tended to be related positively to urban earnings and needs of the rural household and negatively to obligations in the urban household. There was no evidence of ties weakening over time, but migrants who planned to settle in the city remitted less. To an extent conjugal separation was temporary and reflected husbands and wives making the journey at different times. Migrants were also inhibited from bringing their wives to the city if they owned land at origin or had migrated to obtain cash for specific needs. A part of the explanation also lies in varying regional cultural and environmental characteristics.     

Corporate financing and anticipated credit rating changes

Firm circumstances change but rating agencies may not make timely revisions to their ratings, thereby increasing information asymmetry between firms and the market. We examine whether firms time the securities market before a credit rating agency publicly reveals its decision to change a firm’s credit rating. Using quarterly data, we show that firms adjust their financing structures before credit rating downgrades are publicly revealed. Specifically, firms on average increase their debt financing by 1.29 % before the disclosure of a rating downgrade, and this increase is due to the issuance of debt rather than the repurchase of equity. In contrast, firms do not take significant financing actions before credit rating upgrades.     

Corporate Social Responsibility as a Strategic Shield Against Costs of Earnings Management Practices

We highlight how Corporate Social Responsibility (CSR) can be strategically used against the negative perception from earnings management (EM). Using international data, we analyse the effect of CSR and EM on the cost of capital and corporate reputation. Results confirm that CSR strategy is positively valued by investors and other stakeholders. Contrary to EM, CSR has a positive effect on corporate reputation and lowers the cost of capital. In addition, we also find that the favourable effect of CSR on cost of capital is consistently more intense in firms that show signs of EM indicating that the market does not identify when CSR practices are used as a strategy to mask EM. We also demonstrate how institutional factors influence the above relationship.     

Cointegration in Panel Data with Structural Breaks and Cross‐Section Dependence

The power of standard panel cointegration statistics may be affected by misspecification errors if structural breaks in the parameters generating the process are not considered. In addition, the presence of cross‐section dependence among the panel units can distort the empirical size of the statistics. We therefore design a testing procedure that allows for both structural breaks and cross‐section dependence when testing the null hypothesis of no cointegration. The paper proposes test statistics that can be used when one or both features are present. We illustrate our proposal by analysing the pass‐through of import prices on a sample of European countries. Copyright © 2013 John Wiley & Sons, Ltd.     

WHO WILL RETURN AND WHEN? AN ANALYSIS OF RURAL-TO-URBAN MIGRANTS IN INDIA*

An analysis of temporary migration in India is presented. In particular, the author examines, within a multivariate context, the importance of various socioeconomic factors that influence the future plans of rural-urban migrants and their intended timing of return to the rural area. The data are from a 1975-1976 survey of 1,615 migrant heads of households in Delhi.     

On the specification and estimation of macro rural-urban migration functions: with an application to Indian data

The authors suggest several extensions and modifications to the existing specifications of macro migration functions as suggested by Todar through a more careful investigation of the micro theory underlying migration decisions. They use a probabilistic migration model to examine internal migration in India and present evidence that migration tends first to rise and then to fall as rural income rises     

Information flow,expectations and job search: rural-to-urban migration process in India

"Probabilistic migration models assume that search for urban jobs is entirely an urban-based activity and that employment in free-entry activities is a transitional phase during which migrants are actively searching for formal sector employment. This paper tests the empirical validity of these assumptions using data, collected by the author in a sample survey in Delhi [India] in 1975-76, on 1,400 migrants from rural areas." Evidence is presented "that the migration process postulated in probabilistic models is not realistic in the case of Delhi. Over one-half of the sample had moved to Delhi after lining up specific jobs; a sizeable proportion expected to enter on arrival activities generally considered to be characterized by freedom of entry; and the majority of entrants into free-activities did not search for alternative employment and were engaged in the same activities at the time of the survey."