Voting with their Feet? Access to Infrastructure and Migration in Nepal

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Abstract

Using bilateral migration flow data from the 2010 population census of Nepal, this paper provides evidence on the importance of public infrastructure and services in determining migration flows. The empirical specification, based on a generalized nested logit model, corrects for the non-random selection of migrants. The results show that migrants prefer areas that are nearer to paved roads and have better access to electricity. Apart from electricity's impact on income and through income on migration, the econometric results indicate that migrants attach substantial amenity value to access to electricity. These findings have important implications for the placement of basic infrastructure projects and the way benefits from these projects are evaluated.