[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/tsu/tewpjp/2013-002.html
   My bibliography  Save this paper

Do natural disasters beget fraud victimization?: Unrealized coping through labor migration among the poor

Author

Listed:
  • Yoshito Takasaki
Abstract
Although international remittances are important insurance against natural disasters in developing countries, fraud is a pitfall of international labor migration. This paper addresses an unexplored question about the disaster-fraud nexus: Do natural disasters beget fraud victimization among the poor as they seek labor migration for coping? I exploit a natural experiment: Two years after a cyclone, a huge number of Fijian males were defrauded of application fees for labor migration to the Middle East in 2005. My household survey data, which by chance I collected before the fraudulence was noticed, are free from underreporting/misreporting out of embarrassment. Controlling for the endogeneity of household housing damage reveals that housing damage strongly increases individual member fs job application that later turned out to be fraud victimization. Households resort to high-risk, highreturn labor migration because their domestic coping options are constrained by their labor endowment.

Suggested Citation

  • Yoshito Takasaki, 2013. "Do natural disasters beget fraud victimization?: Unrealized coping through labor migration among the poor," Tsukuba Economics Working Papers 2013-002, Faculty of Humanities and Social Sciences, University of Tsukuba.
    • Handle: RePEc:tsu:tewpjp:2013-002
    as

    Download full text from publisher

    File URL: https://pepp.hass.tsukuba.ac.jp/RePEc/2013-002.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Leah Platt Boustan & Matthew E. Kahn & Paul W. Rhode, 2012. "Moving to Higher Ground: Migration Response to Natural Disasters in the Early Twentieth Century," American Economic Review, American Economic Association, vol. 102(3), pages 238-244, May.
    2. Richard H. Adams, Jr. & John Page, 2003. "International migration, remittances, and poverty in developing countries," Policy Research Working Paper Series 3179, The World Bank.
    3. David Strömberg, 2007. "Natural Disasters, Economic Development, and Humanitarian Aid," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 199-222, Summer.
    4. Eduardo Cavallo & Ilan Noy, 2009. "The Economics of Natural Disasters: A Survey," Research Department Publications 4649, Inter-American Development Bank, Research Department.
    5. Yoshito Takasaki, 2011. "Targeting Cyclone Relief within the Village: Kinship, Sharing, and Capture," Economic Development and Cultural Change, University of Chicago Press, vol. 59(2), pages 387-416.
    6. Luca Marchiori & Ingmar Schumacher, 2011. "When nature rebels: international migration, climate change, and inequality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(2), pages 569-600, April.
    7. Bruce Sacerdote, 2012. "When the Saints Go Marching Out: Long-Term Outcomes for Student Evacuees from Hurricanes Katrina and Rita," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 109-135, January.
    8. Bertram, Geoffrey, 1986. ""Sustainable development" in Pacific micro-economies," World Development, Elsevier, vol. 14(7), pages 809-822, July.
    9. Yoshito Takasaki, 2011. "Do Local Elites Capture Natural Disaster Reconstruction Funds?," Journal of Development Studies, Taylor & Francis Journals, vol. 47(9), pages 1281-1298, May.
    10. Derek Kellenberg & A. Mushfiq Mobarak, 2011. "The Economics of Natural Disasters," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 297-312, October.
    11. Peter T. Leeson & Russell S. Sobel, 2008. "Weathering Corruption," Journal of Law and Economics, University of Chicago Press, vol. 51(4), pages 667-681, November.
    12. Yang Dean, 2008. "Coping with Disaster: The Impact of Hurricanes on International Financial Flows, 1970-2002," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-45, June.
    13. Hanson, Gordon H., 2010. "International Migration and the Developing World," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4363-4414, Elsevier.
    14. Siri H. Eriksen & Karen O'Brien, 2007. "Vulnerability, poverty and the need for sustainable adaptation measures," Climate Policy, Taylor & Francis Journals, vol. 7(4), pages 337-352, July.
    15. Rosenzweig, Mark R & Stark, Oded, 1989. "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 905-926, August.
    16. Yasuyuki Sawada, 2007. "The impact of natural and manmade disasters on household welfare," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 59-73, December.
    17. repec:dau:papers:123456789/10842 is not listed on IDEAS
    18. Engel, Stefanie & Ibáñez, Ana María, 2007. "Displacement Due to Violence in Colombia: A Household-Level Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 55(2), pages 335-365, January.
    19. Flore Gubert, 2002. "Do Migrants Insure Those who Stay Behind? Evidence from the Kayes Area (Western Mali)," Oxford Development Studies, Taylor & Francis Journals, vol. 30(3), pages 267-287.
    20. Ariel R. Belasen & Solomon W. Polachek, 2009. "How Disasters Affect Local Labor Markets: The Effects of Hurricanes in Florida," Journal of Human Resources, University of Wisconsin Press, vol. 44(1).
    21. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," The World Bank Economic Review, World Bank, vol. 21(2), pages 219-248, May.
    22. Oded Stark, 1991. "The Migration of Labor," Blackwell Books, Wiley Blackwell, number 1557860300, April.
    23. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Remittances as insurance: evidence from Mexican immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 227-254, June.
    24. Camilo Sarmiento, 2007. "The impact of flood hazards on local employment," Applied Economics Letters, Taylor & Francis Journals, vol. 14(15), pages 1123-1126.
    25. Barslund, Mikkel & Rand, John & Tarp, Finn & Chiconela, Jacinto, 2007. "Understanding Victimization: The Case of Mozambique," World Development, Elsevier, vol. 35(7), pages 1237-1258, July.
    26. Engel, Stefanie & Ibanez, Ana Maria, 2007. "Displacement Due to Violence in Colombia: A Household-Level Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 55(2), pages 335-365, January.
    27. Halliday, Timothy, 2006. "Migration, Risk, and Liquidity Constraints in El Salvador," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 893-925, July.
    28. Dani Rodrik & Mark Rosenzweig (ed.), 2010. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 5, number 6.
    29. Catherine Rodriguez & Edgar Villa, 2012. "Kidnap risks and migration: evidence from Colombia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 1139-1164, July.
    30. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
    31. Fafchamps, Marcel & Minten, Bart, 2006. "Crime, Transitory Poverty, and Isolation: Evidence from Madagascar," Economic Development and Cultural Change, University of Chicago Press, vol. 54(3), pages 579-603, April.
    32. de la Briere, Benedicte & Sadoulet, Elisabeth & de Janvry, Alain & Lambert, Sylvie, 2002. "The roles of destination, gender, and household composition in explaining remittances: an analysis for the Dominican Sierra," Journal of Development Economics, Elsevier, vol. 68(2), pages 309-328, August.
    33. Edward Miguel, 2005. "Poverty and Witch Killing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1153-1172.
    34. Eduardo Cavallo & Ilan Noy, 2009. "The Economics of Natural Disasters - A Survey," Working Papers 200919, University of Hawaii at Manoa, Department of Economics.
    35. Eva Deuchert & Christina Felfe, 2013. "The Tempest: Natural Disasters, Early Shocks and Children's Short- and Long-Run Development," CESifo Working Paper Series 4168, CESifo.
    36. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sawada, Yasuyuki & Takasaki, Yoshito, 2017. "Natural Disaster, Poverty, and Development: An Introduction," World Development, Elsevier, vol. 94(C), pages 2-15.
    2. Bharati Basu & James T. Bang, 2013. "Insurance and remittances: New evidence from Latin American immigrants to the US," Migration Letters, Migration Letters, vol. 10(3), pages 383-398, September.
    3. Giulia Bettin & Riccardo Lucchetti & Claudia Pigini, 2016. "State dependence and unobserved heterogeneity in a double hurdle model for remittances: evidence from immigrants to Germany," Mo.Fi.R. Working Papers 127, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    4. Takasaki, Yoshito, 2017. "Do Natural Disasters Decrease the Gender Gap in Schooling?," World Development, Elsevier, vol. 94(C), pages 75-89.
    5. Richter, Susan M., 2008. "The Insurance Role of Remittances on Household Credit Demand," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6261, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Catia Batista & Janis Umblijs, 2016. "Do migrants send remittances as a way of self-insurance?," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 108-130.
    7. Molina Millán, Teresa, 2015. "Regional Migration, Insurance and Economic Shocks: Evidence from Nicaragua," IZA Discussion Papers 9494, Institute of Labor Economics (IZA).
    8. repec:dau:papers:123456789/5559 is not listed on IDEAS
    9. Yasuyuki Sawada, 2017. "Disasters, Household Decisions, and Insurance Mechanisms: A Review of Evidence and a Case Study from a Developing Country in Asia," Asian Economic Policy Review, Japan Center for Economic Research, vol. 12(1), pages 18-40, January.
    10. Guerrero Compeán, Roberto & Zegarra Méndez, Eduardo & Lacambra Ayuso, Sergio, 2024. "Estimating the Economic Impact of Governance in Disaster Risk Management: Theory and Evidence from Latin America and the Caribbean," IDB Publications (Working Papers) 13659, Inter-American Development Bank.
    11. Okayo Alphonsine COULIBALY, 2016. "Les Motivations Microéconomiques Des Transferts De Fonds Au Burkina Faso : La Culture Est-Elle Déterminante ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 187-208.
    12. Valerie Mueller & Chiara Kovarik & Kathryn Sproule & Agnes Quisumbing, 2015. "Migration, Gender, and Farming Systems in Asia: Evidence, Data, and Knowledge Gaps," Working Papers id:7478, eSocialSciences.
    13. Giulia Bettin & Alberto Zazzaro, 2018. "The Impact of Natural Disasters on Remittances to Low- and Middle-Income Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 54(3), pages 481-500, March.
    14. Lisa Cameron & Manisha Shah, 2015. "Risk-Taking Behavior in the Wake of Natural Disasters," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 484-515.
    15. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 17, pages 1135-1198, Elsevier.
    16. Patrick GUILLAUMONT & Maëlan LE GOFF, 2010. "Aid and remittances: their stabilizing impact compared," Working Papers P12, FERDI.
    17. Matthieu Delpierre & Bertrand Verheyden, 2014. "Remittances, savings and return migration under uncertainty," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-43, December.
    18. Mbaye, Linguere Mously & Zimmermann, Klaus F., 2016. "Natural Disasters and Human Mobility," International Review of Environmental and Resource Economics, now publishers, vol. 10(1), pages 37-56, November.
    19. Ambrosius, Christian & Cuecuecha, Alfredo, 2013. "Are Remittances a Substitute for Credit? Carrying the Financial Burden of Health Shocks in National and Transnational Households," World Development, Elsevier, vol. 46(C), pages 143-152.
    20. Abla Safir, 2009. "Who leaves, who moves in? The impact of positive and negative income shocks on migration in Senegal," Working Papers halshs-00585955, HAL.
    21. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 13092.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tsu:tewpjp:2013-002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yoshinori Kurokawa (email available below). General contact details of provider: https://edirc.repec.org/data/iptsujp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.