Migrant Remittances and Physical Investment Purchases: Evidence from Kenyan Households

This paper investigates the impact of remittances on household decisions to purchase physical investments in Kenya using household survey data. An instrumental variables approach is employed using rainfall variation and mobile network coverage as instruments to control for the endogeneity of remittances. The empirical evidence obtained is suggestive of remittances having a positive and significant effect on the decisions by households to purchase physical investments.     

Remittances and Happiness of Migrants and Their Home Households: Evidence Using Matched Samples

This paper explores how remittances influence happiness among migrants and their households of origin. It is based on a novel data set of matched samples of Bangladeshi migrant households (living in the UK and Malaysia) and their origin families in Bangladesh. Empirical findings suggest that remittances play a significant role in stimulating migrants’ happiness. We also find that the households of origin’s life satisfaction not only depends on receiving remittances from the emigrants, but also other factors such as number of migrants from the household living abroad and the migrants’ country of destination.     

An Inquiry into the Heterogeneous Outcomes of International Migration: Evidence from Rural Households in Bangladesh

There are considerable differences in the duration, intensity, and history of migration experiences among migrant households. The variation can have a significant effect on their investment behaviour. We classify our sample households in Bangladesh into four groups depending on the history and stage of migration and estimate its differential effect on physical and human capital investment. The results show that the patterns of investment are distinct between the groups and even of opposite directions in some cases. These heterogeneous effects often cancel each other out, leading to insignificant effects of migration when the average effect on all migrant households is estimated.     

Reconsidering Gender Bias in Intrahousehold Allocation in India

Finding evidence of gender discrimination among children in the intrahousehold allocation of goods has often proven to be difficult. This article uses data on education expenditures in India to test whether data aggregation, data reliability and the statistical method used help explain this pattern. Results suggest that discrimination against girls is increasing in age and robust to the statistical method and the expenditure measure at the all-India level, although state-level results are more sensitive. I find that data aggregation and statistical method are important factors in detecting gender bias, while data reliability does not seem to play a major role.     

Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa

Based on unique microdata from five Sub-Saharan African countries that contain comprehensive information on both migrants and their households at the origin country, we investigate the effect of migrants’ education on their remittance behaviour. Our results reveal that migrants’ education has no impact on the likelihood of sending remittances, but a positive effect on the amount of money sent, conditional on remitting. The latter effect holds for internal migrants and migrants in non-OECD countries, while it vanishes for migrants in OECD destination countries once characteristics of the origin household are controlled for.     

Remittances and Chain Migration: Longitudinal Evidence from Bosnia and Herzegovina

Abstract

Most of the literature on remittances focuses on their implications for the welfare of family members in the country of origin and disregards their role as facilitator of chain migration. We address this issue with the use of longitudinal data from Bosnia and Herzegovina, one of the primary exporters of migrants and recipients of remittances in the world. We find that remittances have a significant positive impact on the migration prospects of their recipients. Better-endowed people are most likely to migrate, which highlights a potential negative implication of migration and remittances.     

Look Who's Talking: The Impacts of the Intrahousehold Allocation of Mobile Phones on Agricultural Prices

Using data from the Philippines, we study the impact of mobile phones on the prices agricultural producers receive for their cash crop. We first look at the impact on price of mobile phone ownership at the household level. Because this masks a considerable amount of heterogeneity, we then look at the impact on price of the intrahousehold allocation of mobile phones. We find that whether the household owns a mobile phone has no impact on price, but whether a farmer or spouse owns a mobile phone is associated with a 5- to 8-per cent increase in price.     

Sharing Norm Pressures and Community Remittances: Evidence from a Natural Disaster in the Pacific Islands

Abstract

Migrants are often subject to social pressures to remit beyond their own households, to share the benefits of migration with the wider community in their home country; these are ‘community remittances’. We hypothesise that community sharing norm pressures are stronger in locations with more extensive home community networks. We also postulate that the responsiveness of remittances to sharing pressures is subject to diminishing returns, attributable to a donor fatigue effect. Using customised survey data from three Polynesian migrant groups in metropolitan and regional Australia, we estimate double-hurdle regression models of community remittances. To identify the effects of sharing norm pressures we exploit an exogenous (cyclone) shock to home country incomes affecting one sub-group. We find strong evidence in support of the postulated responsiveness of community remittances to location-related differences in sharing norm pressures, and the presence of a donor fatigue effect. The policy implications are discussed.     

Remittances,Poverty, Inequality and Welfare: Evidence from the Central Plateau of Burkina Faso

This paper applies Gini and concentration coefficient decomposition as well as the Foster-Greer-Thorbecke poverty index and the Stark-Yitzhaki welfare index to new data from four villages in Burkina Faso, to compare the marginal effects of remittances from intercontinental and intra-African migration on inequality, poverty and social welfare. Evidence is found that intra-African remittances reduce inequality while intercontinental remittances have the opposite effect. Also, it is found that although remittances from intercontinental migration are associated with much lower incidence, depth and severity of poverty, the marginal impact of remittances from this form of migration on social welfare is limited because recipients do not include the rural poor.     

The Role of Empowerment in Agricultural Production: Evidence from Rural Households in Niger

We use new household and individual level WEAI data from the Tahoua region of Niger and estimate a variable coefficient Cobb-Douglas production function in which traditional inputs interact with two human capital variables – empowerment and formal education. Our estimation results reveal that human capital matters for productivity. So much so that it can be considered as technology-changing, significantly affecting a household’s production technology by enhancing returns to equipment. In fact, differentiating households by their status as dual or primary with only an adult female or male reveals that the productivity elasticity of empowerment is large for dual households in which women are the least empowered. Enhancing the empowerment of women in this group of households, by increasing their leadership skills or tenure security, would yield important productivity gains.     

Drivers and Dynamics of Internal and International Remittances

This article analyses whether and how intra-household remittance volumes vary with the length of a migrant's absence, and whether the drivers and dynamics of remittance decay depend on the migrant's destination. We address these questions by using data from the 64th round of the Indian National Sample Survey, conducted between July 2007 and June 2008. We find that the average intra-household remittance function follows a curvilinear trajectory that is best approximated by a quartic (M-shaped) specification. The volatility of intra-household remittances is distinct across migration destinations, with international remittance flows being more volatile than internal intra-state or inter-state flows.     

The Effects of International Remittances on Poverty and Inequality in Ethiopia

Abstract

The article studies the effects of international remittances on poverty and inequality in Ethiopia using an urban household survey from 2004. Counterfactual consumption in the hypothetical case of no remittance is estimated in a selection-corrected estimation framework. Inequality and poverty values in the hypothetical and actual cases are then compared. There is a significant reduction in poverty, while inequality does not change. The head count, the poverty gap and the squared poverty gap ratios decreased from 0.41 to 0.38, 0.14 to 0.13, and 0.064 to 0.057 respectively.     

Remittances,Bonds and Bridges: Remittances and Social Capital in Burundi

This study explores the effects of remittances on households’ structural social capital in urban Burundi. Distinctions are made between bonding and bridging social capital, referring to intra- versus inter-network ties of family members and friends. The results demonstrate that remittance-receiving households invest more in bridging social capital by participating in organisations (donating time), but make fewer monetary contributions, compared to non-receiving households. Remittances have mixed effects on bonding social capital: receiving households give significantly less gifts to family members and friends, but are more likely to send internal remittances, compared to non-receivers. The implications of these findings for post-conflict development are discussed.     

Food Aid and Malnutrition in Developing Countries: Evidence from Global Food Aid Allocation

This study investigates the allocation of dietary energy, iron, vitamin A and zinc within global food aid. The response of US and non-US donors to nutritional needs and donor interests is estimated with a dynamic correlated random effects Tobit model. Aid flows of the period 1993–2007 are analysed. The empirical results show that nutrient shipments in emergency food aid have been allocated towards poorer countries, but also face inertia and media bias. Project food aid from the US is found to be targeted towards politically stable and rural regions, while non-US project aid focuses on populations with high nutritional requirements.     

Cash Transfers Enable Households to Cope with Agricultural Production and Price Shocks: Evidence from Zambia

Climate change is projected to dramatically disrupt rainfall patterns and agricultural yields in sub-Saharan Africa. These shocks to food production can mire farming households in poverty traps. This study investigates whether unconditional cash transfers can help households cope with agricultural production and price shocks. We find that cash empowers poor, rural households facing these negative shocks to employ coping strategies typically used by the non-poor and enables them to substantially increase their food consumption and overall food security. Extending relatively small cash payments unconditionally to the rural poor is a powerful policy option for fostering climate-resilient development.     

Public Resource Allocation through Grassroots Democratic Institutions: Evidence from Assam,India

ABSTRACT

The success of democratic institutions at the grassroots level in allocating public benefits to the target groups depends on people’s political participation. Applying logistic regression, ordinary least squares (OLS), and the Heckman model based on a data set collected from 30 panchayats from three districts of Assam (India), this article addresses three questions: (a) who participates? (b) who gets the public benefits? and (c) whether participants get more benefits. The results suggest no overwhelming elite capture and clientalization, and contributes to the current debate on the association between democracy and development by way of establishing that democracy at the grassroots does, indeed, deliver.     

The Impact of International Remittances on Child Outcomes and Household Expenditures in Nepal

Nepal has one of the highest ratios of international remittances to gross domestic product in the world. We examine whether the massive inflow of international remittances affects child schooling, child labour and household expenses. Controlling extensively for a host of observed characteristics of households and migrants, and using an instrumental variable approach, this research finds no effect of international remittances on child education or child labour in Nepal. However, it does find a significant increase in non-food expenditures, including education spending, due to international remittances. Despite increased expenditure on child education, educational outcomes are not improving because of international remittances.     

Vulnerability to Multidimensional Poverty: Findings from Households in Melanesia

This paper examines vulnerability in two Melanesian small island developing states: Solomon Islands and Vanuatu. With large proportions of the population living semi-subsistence lifestyles in rural areas, consumption poverty is notoriously difficult to measure. The paper therefore departs from the standard approach and assesses household vulnerability to multidimensional poverty. The paper employs cross-sectional data from a household survey. Results indicate that vulnerability is more widespread than poverty and that vulnerability stems more from excess volatility in expected wellbeing than a particularly low expected level of wellbeing, per se. Results point to a pressing need for formal social protection policies to be implemented.     

Aid,Remittances, Medical Brain Drain and Child Mortality: Evidence Using Inter and Intra-Country Data

This article analyses the respective impact of aid, remittances and medical brain drain (MBD) on child mortality using panel and cross-country quintile-level data on respectively 84 and 46 developing countries. Our results show that remittances reduce child mortality while MBD increases it. Health aid also significantly reduces child mortality but its impact is less robust than the impact of remittances. Remittances seem to be more effective in reducing mortality for children belonging to households from the upper classes, whereas neither a pro-poor nor anti-poor effect is found for health aid.     

Fairness and Efficiency in Smallholder Farming: The Relation with Intrahousehold Decision-Making

Agricultural households face collective action dilemmas when making decisions about investments in their common household farm and the allocation of resources and benefits derived from it. We relate intrahousehold decisions, as measured in a lab-in-the-field experiment conducted with spouses in agricultural households in western Uganda, with actual investments and intrahousehold resource allocation. Intrahousehold decision-making that supports cooperation and equitable sharing is associated with greater investment in the intensification of cash and food crop production, and more equitable access and control over income. Freeriding behaviour by husbands is associated with the intensification of cash crop production, but not with equitable sharing.