Remittance Effects on Child Labour: Evidence from Burkina Faso

This article explores the effects of remittance receipt on child labour in an African context. We focus on Burkina Faso, a country with a high prevalence of child labour and a high rate of migration. Given the complex relationship between remittance receipt and household time allocation decisions, we instrument remittances using economic conditions in remittance-sending countries and explore heterogeneous effects across different types of potential remitters. While remittances have no significant effect on child labour on average, transfers reduce child labour in long-term migrant households, for whom the disruptive effect of migration is no longer felt. We find no gender difference but remittances seem to affect mainly the labour market participation of younger children.     

Poverty Transition in Rural Vietnam: The Role of Migration and Remittances

This study combines insights of the New Economics of Labour Migration with the asset-based approach to welfare dynamics using panel household data from Vietnam. This method allows us to determine whether poverty transitions induced by remittances are actually structural, that is, based on asset growth and therefore long term, or stochastic, that is, based only on short-term increases in income, which implies a risk of falling back into poverty. To control for endogeneity of remittances, we use household fixed effects and instrumental variables estimation. The paper shows that remittances have a positive impact on asset growth and that the impact differs with welfare status and ethnicity.     

The shadow value of migrant remittances,income and inequality in a household‐farm economy

This article offers econometric evidence that income remittances sent home by family migrants stimulate household‐farm incomes indirectly by relieving credit and risk constraints on household‐farm production. A high but unequally distributed shadow value of migrant remittances appears to reinforce an equalising direct effect of remittances on the income distribution across a sample of household‐farms in rural Mexico.     

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.     

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.     

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.     

For Health,Strength, and Daily Food: The Dual Impact of Remittances and Public Health Expenditure on Household Health Spending and Child Health Outcomes

Abstract

Child and infant mortality in developing countries decreased 33.5 per cent and 30.9 per cent, respectively, during 1995–2009, while remittances and public health spending more than doubled. I examine how remittances and government health spending improve these child health outcomes. Neither government health spending nor remittances causally affect household health spending. Public health spending has an insignificant negative impact on mortality. The increase in remittances causally accounts for 32 per cent and 37 per cent of the decline in child and infant mortality, respectively. Remittances reduce mortality through improved living standards from the relaxation of households’ budget constraints.     

Heterogeneity in the Intrahousehold Allocation of International Remittances: Evidence from Philippine Households

This article shows that heterogeneity in the intrahousehold allocation of remittances sent by temporary international migrant workers exists among households in the Philippines, and may be attributable to the absence of the spouse, suggesting moral hazard, and to the gender and educational attainment of the household head, indicating differences in preferences. GLM estimates and post-estimation tests reveal that male heads spend more on alcohol and tobacco, that the presence of a female decision-maker in a household increases allocations to goods that improve the welfare of the children, and that household heads with less formal education allocate more to education.     

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.     

Weather Shocks and Urban Livelihood Strategies: The Gender Dimension of Household Vulnerability in the Kumi District Of Uganda

The Teso sub-region of Uganda suffered numerous weather shocks in the past, with devastating food security consequences. Using household fixed effects and propensity score matching methods, we analyse the impact of exposure to drought, flood and severe incidence of pests and diseases on household consumption expenditure per adult equivalent for a random sample of households from Kumi Town Council. We find that weather shocks reduce consumption by 17 per cent and that the consumption decline is significantly larger among female-headed households. We also find a higher likelihood of non-farm employment, borrowing and receiving remittances in order to cope with the shocks.     

Long-term Impacts of Global Food Crisis on Production Decisions: Evidence from Farm Investments in Indonesia

This paper estimates farmers’ investment response to food price spikes using household panel data collected before and after the 2007/08 food price crisis in Indonesia. We found that an increase in farmers’ terms-of-trade allowed relatively large crop-producing farmers to increase their investments at both extensive and intensive margins. Food price spikes had a significant income effect among farmers whose production surplus is large for market sales. During the food price crisis, large farmers particularly increased machine investments, which saved some labour inputs, pointing to the importance of complementarities between land and machine investments.     

Consumption vulnerability to risk in rural Pakistan

As one of the dimensions of vulnerability, this paper empirically investigates the inability of rural dwellers to cope with negative income shocks. A variable coefficient regression model is applied to a two-period household panel dataset collected in the North-West Frontier Province, Pakistan, an area with high incidence of income poverty and low human development. The empirical model allows for a different ability to smooth consumption, approximated by a linear function of households’ attributes, and controls for the endogeneity of observed changes in income, using qualitative information on subjective risk assessment. Estimation results show that the ability to cope with negative income shocks is lower for households that are aged, landless and do not receive remittances regularly.     

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.     

Remittances,Banking Status and the Usage of Insurance Schemes

Empirical evidence that migrants send home more remittances after disasters raises the question of whether remittances are used to self-insure, substituting for both formal and informal insurance. We investigate this question using a unique data set on the usage patterns of financial services by households in South Africa. We show that the likelihood that a respondent has a formal funeral cover increases with income and banking status. However, it is lower for individuals receiving remittances, which supports the idea that remittances act as self-insurance. We also show that other risk management strategies influence the purchasing of formal funeral cover. Finally, we find that determinants of informal insurance differ from those of formal insurance.     

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.     

Private monetary transfers in rural china: Are families altruistic?

Monetary transfers between relatives may be motivated by altruism, or they may represent payments for services rendered. Data from a large 1988 household survey are used to test these hypotheses and to study the size and direction of transfers in rural China. The analysis suggests that altruism alone cannot explain the observed transfers and that exchange may be involved. Most of the money flows appear to be transfers from adult children to elderly parents and remittances from migrants. Child care is likely to be one of the main services that parents render to adult children in exchange for money.     

Using Stated Preferences and Beliefs to Identify the Impact of Risk on Poor Households

Whilst the importance of uncertainty in shaping economic behaviour of poor households is widely acknowledged, empirically identifying the impact of risk is difficult. By using data on risk preferences and perceptions of risk collected through hypothetical questions in combination with more traditional measures of a household's ability to deal with risk, this article identifies the impact of risk on production decisions. It shows both that data on stated preferences and beliefs can be usefully utilised to explain household behaviour, and that risk has a significant impact on the production decisions of poor households.     

The Effects of Improved Roads on Wages and Employment: Evidence from Rural Labour Markets in Indonesia

This paper examines the impact of road quality on labour supply and wages using household panel data from rural Indonesia. The analysis uses fixed-effect instrumental variable estimation by first differencing two-round panel data. First, road projects are found to increase the transportation speed. Second, the empirical results from intra-village variations of household endowments and labour-market behaviour show that an increase in transportation speed raised wages in both non-agricultural and agricultural employment, and was associated with a decline in working time in agricultural employment, for the households whose members are relatively educated. The findings support potential complementarity between road quality and education, implying that the government’s public investments in roads and education should be coordinated to capture cross-augmenting positive impacts in the long run.     

The Bang for the Birr: Public Expenditures and Rural Welfare in Ethiopia

This article explores the impact of different types of public spending on rural household welfare in Ethiopia. The analysis reveals that public spending on road infrastructure is characterised by relatively high, but regionally strongly concentrated, returns in terms of rural household welfare. This is quite in contrast to the returns to public expenditures in education, which have attributes of much wider reach but less intensity. Public investments in agriculture show results that are low in magnitude and in statistical significance, mostly due to a poor link between public expenditures in agriculture and productivity in the sector.     

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.