Abstract
This paper aims to examine the relationship between rising temperatures, a consequence of climate change, and migration, focusing on declining agricultural profitability as a potential driver. We adopt a microeconomic approach using migration and temperature data from Indonesia, a developing country that is particularly vulnerable to the effects of climate change. Using both panel data and difference-in-differences (DiD) methods, we find that rising temperatures have a significant effect on individual migration decisions, but not on urbanization. This result challenges part of the existing literature on the topic, which generally finds a positive impact of higher temperatures on both migration and urbanization.