Template-Type: ReDIF-Paper 1.0 Author-Name: Jean-Francois Maystadt Author-Name-First: Jean-Francois Author-Name-Last: Maystadt Author-Name: Valerie Mueller Author-Name-First: Valerie Author-Name-Last: Mueller Author-Name: Ashwini Sebastian Author-Name-First: Ashwini Author-Name-Last: Sebastian Title: Environmental migration and labor markets in Nepal Abstract: While an emerging literature cites weather shocks as migration determinants, scant evidence exists on how such migration impacts the markets of receiving communities in developing countries. We address this knowledge gap by investigating the impact of weather-driven internal migration on labor markets in Nepal. An increase of 1 percentage point in net migration reduces wages in the formal sector by 4.8 percentage points. The absence of wage effects in the informal sector is consistent with the exit of low-skilled native workers from the labor market. Understanding entrepreneurial constraints and drivers of labor market exits will inform pathways to resilience. Creation-Date: 2014 File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/EnvironmentalMigration.pdf File-Format: application/pdf Number: 66401053 Classification-JEL: J21, J61, O15 Keywords: Environmental migration, weather, conflict, labor markets, Nepal Handle: RePEc:lan:wpaper:66401053