Migration and Income Diversification: ∗: Evidence from Burkina Faso

SummaryThis paper uses limited-dependent variable methods and new data from Burkina Faso to test the impact of inter-continental and continental migration on activity choice and incomes in rural households. Econometric evidence supports our theoretical expectation that the impact of emigration varies both by migrant destination and production activity. We find no evidence of either positive or negative effects of continental migration on agricultural or livestock activities, and only a small negative impact on nonfarm activities. However, inter-continental migration, which tends to be long-term and generates significantly larger remittances, stimulates livestock production while being negatively associated with both staple and nonfarm activities.