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Remittances, Household Expenditure and Investment in Rural India: Evidence from NSS data

Author

Listed:
  • Parida, Jajati K.

    (National Institute of Labour Economics Research and Development, NITI Aayog, Government of India)

  • Mohanty, Sanjay K.

    (Harvard School of Public Health, USA and Department of Fertility Studies, International Institute of Population Sciences, Mumbai)

  • Raman, K. Ravi

    (Nehru Memorial Museum and Library, Ministry of Culture, Govt. of India)

Abstract

The paper attempts to study the migration trends and the factors driving it in India and also to understand and compare the marginal spending behavior of three groups of households in India - those not receiving remittances, receiving internal remittances and receiving international remittances - with an emphasis on its impact on investment in human capital defined as education and health. The analysis, based on a nation-wide sample survey, reveals that migration, besides playing a major role in poverty reduction, also has an important bearing on marginal spending behavior much in keeping with Engels Law and also that the amount set aside towards human capital formation is significant, which has wider policy implications.

Suggested Citation

  • Parida, Jajati K. & Mohanty, Sanjay K. & Raman, K. Ravi, 2015. "Remittances, Household Expenditure and Investment in Rural India: Evidence from NSS data," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 50(1), pages 79-104.
  • Handle: RePEc:dse:indecr:0097
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    Citations

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    Cited by:

    1. Jajati K. Parida & Merry Elizabeth John & Justin Sunny, 2020. "Construction labour migrants and wage inequality in Kerala," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(2), pages 414-442, December.
    2. Justin Sunny & Jajati K. Parida & Mohammed Azurudeen, 2020. "Remittances, Investment and New Emigration Trends in Kerala," Review of Development and Change, , vol. 25(1), pages 5-29, June.
    3. Kul Kapri & Stuti Jha, 2020. "Impact of remittances on household health care expenditure: Evidence from the Nepal Living Standards Survey," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 991-1008, August.
    4. S. Irudaya Rajan & T. M. Sivadasan & Reddy Sai & Shiva Jayanth & Pooja Batra, 2022. "Household Pandemic Response - The Socioeconomic Impact of COVID-19 on Migrant Households in India," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 3(2), pages 1-5.
    5. Jajati Keshari Parida & S. Madheswaran, 2023. "Harnessing Demographic Dividend Before it is Lost Forever in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 61-79, March.

    More about this item

    Keywords

    Remittances; Household Spending; Human Development;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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