Gendered Impacts of Migration on Household Dynamics and Labor Supply Responses in India - (draft available soon)
with G. Dangwal and J. Romero
Temporary household separation is a common feature of internal migration in low-income settings, yet its effects on intra-household labor dynamics remain unclear. This paper uses high-frequency panel data from India to study how households adjust labor supply following the temporary migration of the male household head. We begin by developing a theoretical model in which household members allocate labor and care responsibilities in response to migration, generating predictions about gendered labor reallocation, remittances, and schooling. These predictions guide our empirical analysis. Using the granularity of the data, we implement a difference-in-differences event study to trace labor responses over time. To strengthen causal identification, we exploit variation in migration driven by exogenous pull shocks from commodity price fluctuations. We find that migration leads to a sharp rise in per capita remittances, accompanied by declines in household wage earnings and farm income, consistent with the loss of a primary earner. In response, spouses increase paid labor and reduce unpaid domestic labor. Other household members, including both men and women, also raise labor force participation. Among young adults, school attendance falls. At the return of the household head, the effect on spouses’ labor partially reverses. Asset ownership falls during separation, but increases partially after the migrant’s return. These findings show that migration reallocates labor within the household across time, with important implications for income, care responsibilities, and human capital investment.