Research Insights: What Are the Effects of Weather-Induced Rural-Urban Migration on Destinations’ Labor and Housing Markets?
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Cities that received more migrants observed faster growth in employment and a slower increase in wages. The wage effects are stronger in the service sector, likely due to its higher degree of labor informality. The stock of precarious housing units increased in cities receiving more rural migrants, rents for this type of housing did not increase, suggesting that supply kept pace with migration-driven growth in demand. Non-precarious housing experienced faster growth in rents but slower growth in quantities in cities that received more rural migrants. This is consistent with cities having a limited supply of land for housing.