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International migration, remittances, and remaining households: evidence from a trade embargo

Author

Listed:
  • Afnan AL-MALK

    (Qatar University)

  • Jean-François MAYSTADT

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • Maria AVARRO PANIAGUA

    (Lancaster Univeristy)

Abstract

Identifying the impact of remittances on household members remaining behind is difficult due to selection into migration. In this paper, we exploit an unexpected embargo on Qatar, the second major destination among Nepali migrants. Using longitudinal data on about 1,500 Nepali households with migrants prior to the embargo, we assess how this shock translates into changes in remittances and development outcomes. We find a 56% reduction in remittances for households with a migrant in Qatar. At least in the months immediately after the shock, such a fall in remittances does not seem to translate into recipient household's welfare. However, we cannot exclude that such effect might materialize in the medium run. That is particularly true for poor and credit-constrained households, especially vulnerable to the remittance windfall and lacking the ability to move their migrants or other household members to other destinations.

Suggested Citation

  • Afnan AL-MALK & Jean-François MAYSTADT & Maria AVARRO PANIAGUA, 2024. "International migration, remittances, and remaining households: evidence from a trade embargo," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 90(3), pages 412-433, September.
    • Handle: RePEc:ctl:louvde:v:90:y:2024:i:3:p:412-433
    DOI: 10.1017/dem.2024.22
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    More about this item

    Keywords

    Embargo; Nepal; Qatar; Remittances;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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