More on migration and social safety nets

 The link between migration and social safety nets seems very plausible. Though, it is not entirely clear to me the direction of the effect. If the leading argument is true then, an increase in coverage or benefits in social safety nets will discourage individuals and families from migrating, at least those whose decision is related to finding steady sources of income. This will decrease the expected amount of remittances received by the family and given the importance of this source of income in the majority of households in low income countries; the impact can be quite large. Thus, maybe social safety nets are not only reducing vulnerabilities but also generating a reduction in expected income. It is well known that international migration moves closely to business cycle, as do the attitudes towards migrants. But in times of global economic slums, when economic conditions deteriorate in both the host and the sending country what it is going to happen? We will expect that the conditions in low income countries always deteriorate more and also that poor people are the more vulnerable to crises. So if social safety nets are reducing the incentive to migrate, especially in times of crises when most of the programs are in place, they might be associated with a reduction in well being of poor families in the poorest countries. Something to think about…http://www.voxeu.org/index.php?q=node/3512