European Business Schools Librarian's Group

Working Papers,
Copenhagen Business School, Department of Economics

No 8-2026: Powering Mobility: Electrification and Internal Migration Dynamics

Dagmawe Tenaw (), Tooraj Jamasb () and Manuel Llorca ()
Additional contact information
Dagmawe Tenaw: Department of Economics and Management “Marco Fanno”, University of Padova, Italy
Tooraj Jamasb: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark
Manuel Llorca: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark

Abstract: Electrification is a key driver of human welfare, yet its role on internal migration remains underexplored. This paper studies how reliable electrification influences migration dynamics in Ethiopia, a rapidly electrifying country with sizable internal mobility, by combining a spatial perspective with analysis of local economic effects. We first adopt an electrification-augmented gravity model of internal migration and explore the origin vs destination effects of regional electrification. We then complement this approach with a community-level analysis to uncover underlying mechanisms. Leveraging different rich administrative surveys combined with satellite-based nighttime luminosity, we find that electrification at destinations acts as a strong pull factor, attracting both rural- and urban-origin migrants. In contrast, the effect of origin electrification is non-linear, with its migration-inducing effect dominating and operating mainly through urban-directed flows. The community-level analysis reinforces the gravity-based findings, showing that reliable electricity is strongly associated with a higher (lower) likelihood of a community becoming a net receiver (sender) of migrants and experiencing higher inward (outward) labor mobility. Improved access to public services and local employment sources are the main channels at play. Overall, we provide policy-relevant insights into the role of reliable electrification in shaping demographic dynamics.

Keywords: Gravity model; Migration; Labor mobility; Reliable electricity; Nighttime luminosity

JEL-codes: J61; O18; Q40; R23

Language: English

37 pages, April 22, 2026

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