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Examines income effects of resettlement in households, highlighting rising inequality based on labour endowments.
This paper examines how poverty alleviation resettlement affects household labour allocation and income. We identify two competing mechanisms: a last-mile channel that lowers migration costs and promotes urban work, and a home-attachment channel that improves local amenities and discourages migration. Using panel data and a difference-in-differences design, we find that resettlement raises total income and migrant wages by shifting labour from farming to urban employment. However, gains are concentrated among labour-abundant households, while labour-constrained households experience stagnant or declining earnings. These findings show that resettlement can unintentionally widen inequality, underscoring the role of household labour endowments in shaping programme impacts.
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Guo et al. (2026) studied this question.
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