Network Size and Temporary Migration

ABSTRACT In this study, we explore the impact of network size on temporary migration, using data from the Indian Human Development Survey 2011–12. Network size indicates the availability of informal risk‐sharing for rural households, with temporary migration acting as another self‐insurance method. We demonstrate that the effect of network size on migration is contingent upon the network's endowment, particularly emphasizing the role of credit constraints in low‐endowed networks. The findings reveal that larger network sizes reduce temporary migration in high‐endowed upper‐caste networks but increase in less‐endowed lower‐caste networks. This association is supported using historical caste population data from the 1961 census and regions dominated by non‐migrants. We further ascertain that enhanced network size alleviates credit constraints in lower‐endowed networks, driven by the network's income and influenced by exogenous rainfall shocks.