Abstract
Anna L. Paulson. "Insurance Motives for Migration: Evidence from Thailand." March 2000.

Migrants often maintain important connections with their origin communities. In particular, many migrants provide support to non-migrants, usually relatives, through remittances. Remittances are often an important source of protection against adverse events for the receiving household. The prevalence and the importance of remittances from migrants both as a source of income and as insurance, suggest that migrants may consider their role as future remitters in deciding where to locate. This paler examines whether the location choices of migrants who remit are consistent with a desire to mitigate the risk faced by the remitting and the receiving households. Cross-sectional household data on the location and earnings of remitters and remittees is used together with historical rainfall and gross domestic product data at the provincial level to examine this question for Thailand. The results indicate that insurance motives play an important role in explaining migration patterns. Empirical estimates that include insurance variables perform better than estimates that only consider income maximization. I find that remitters are significantly less likely to move to Bangkok the more it covaries with the province they remit to. This is particularly true for remitters who support rural households who are likely to be poorer and to have less access to national level institutions (like banks and insurance companies) that could be used to mitigate local risk.