IDEAS home Printed from https://ideas.repec.org/a/lje/journl/v19y2015i1p47-69.html
   My bibliography  Save this article

Migration, Remittances, and Household Welfare: Evidence from Pakistan

Author

Listed:
  • Masood Sarwar Awan

    (Associate professor, Department of Economics, University of Sargodha, Pakistan.)

  • Mohsin Javed

    (MPhil student, Department of Economics, University of Sargodha, Pakistan.)

  • Muhammad Waqas

    (PhD student, Department of Economics, University of Sargodha, Pakistan.)

Abstract

This study examines the costs and household-level benefits of overseas migration in Toba Tek Singh, Pakistan. A household survey was conducted to assess the transaction costs associated with the transfer of remittances and the sources used to finance overseas migration. We also carry out a propensity-score matching exercise, which reveals that overseas migration has substantial benefits as measured by migrants’ consumption levels, their expenditures on health, education, and vehicles, and the level of household savings. Policy options to facilitate migration and the transfer of remittances include (i) establishing technical training institutions to help workers upgrade their skills, (ii) information campaigns on the migration process and opportunities available, (iii) setting up institutions to provide loans for potential migrants, (iv) reducing money transfer costs through formal channels, and (v) building awareness of the Pakistan Remittance Initiative.

Suggested Citation

  • Masood Sarwar Awan & Mohsin Javed & Muhammad Waqas, 2015. "Migration, Remittances, and Household Welfare: Evidence from Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(1), pages 47-69, Jan-June.
  • Handle: RePEc:lje:journl:v:19:y:2015:i:1:p:47-69
    as

    Download full text from publisher

    File URL: http://121.52.153.179/JOURNAL/volume%2020-1/02%20Awan%20et%20al.%20ED%20AAC.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
    2. David McKenzie & John Gibson & Steven Stillman, 2006. "How Important is Selection? Experimental vs Non-experimental Measures of the Income Gains of Migration," Working Papers 06_02, Motu Economic and Public Policy Research.
    3. McKenzie, David & Gibson, John & Stillman, Steven, 2006. "How important is selection ? Experimental versus non-experimental measures of the income gains from migration," Policy Research Working Paper Series 3906, The World Bank.
    4. Jonathan Crush & Bruce Frayne, 2007. "The migration and development nexus in Southern Africa Introduction," Development Southern Africa, Taylor & Francis Journals, vol. 24(1), pages 1-23.
    5. Carolyn Heinrich & Alessandro Maffioli & Gonzalo Vázquez, 2010. "A Primer for Applying Propensity-Score Matching," SPD Working Papers 1005, Inter-American Development Bank, Office of Strategic Planning and Development Effectiveness (SPD).
    6. John Anyanwu & Andrew E. O. Erhijakpor, 2010. "Do International Remittances Affect Poverty in Africa?," African Development Review, African Development Bank, vol. 22(1), pages 51-91.
    7. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    8. Acosta, Pablo & Fajnzylber, Pablo & Lopez, J. Humberto, 2007. "The impact of remittances on poverty and human capital : evidence from Latin American household surveys," Policy Research Working Paper Series 4247, The World Bank.
    9. Adams Jr., Richard H., 2009. "The Determinants of International Remittances in Developing Countries," World Development, Elsevier, vol. 37(1), pages 93-103, January.
    10. David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, June.
    11. Rabia Arif & Azam Chaudhry, 2015. "The effects of external migration on enrolments, accumulated schooling and dropouts in Punjab," Applied Economics, Taylor & Francis Journals, vol. 47(16), pages 1607-1632, April.
    12. Nguyen Viet, Cuong, 2008. "Impacts of International and Internal Remittances on Household Welfare: Evidence from Viet Nam," MPRA Paper 25770, University Library of Munich, Germany.
    13. Gupta, Sanjeev & Pattillo, Catherine A. & Wagh, Smita, 2009. "Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa," World Development, Elsevier, vol. 37(1), pages 104-115, January.
    14. Sharma, Manohar & Zaman, Hassan, 2009. "Who migrates overseas and is it worth their while ? an assessment of household survey data from Bangladesh," Policy Research Working Paper Series 5018, The World Bank.
    15. France Maphosa, 2007. "Remittances and development: the impact of migration to South Africa on rural livelihoods in southern Zimbabwe," Development Southern Africa, Taylor & Francis Journals, vol. 24(1), pages 123-136.
    16. Adams, Richard H., Jr. & Cuecuecha, Alfredo, 2010. "The economic impact of international remittances on poverty and household consumption and investment in Indonesia," Policy Research Working Paper Series 5433, The World Bank.
    17. Michael Lokshin & Mikhail Bontch‐Osmolovski & Elena Glinskaya, 2010. "Work‐Related Migration and Poverty Reduction in Nepal," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 323-332, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kiran FATIMA & Abdul QAYYUM, 2016. "Analysing the Effect of Remittances on Rural Household in Pakistan," Turkish Economic Review, KSP Journals, vol. 3(2), pages 292-299, June.
    2. Fatima, Kiran & Qayyum, Abdul, 2016. "Remittances and Asset Accumulation of Household in Pakistan," MPRA Paper 72945, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:lje:journl:v:20:y:2015:i:1:p:47-69 is not listed on IDEAS
    2. Mohisn Javed & Masood Sarwar Awan & Muhammad Waqas, 2017. "International Migration, Remittances Inflow and Household Welfare: An Intra Village Comparison from Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 779-797, January.
    3. Eliana V. Jimenez & Richard P.C. Brown, 2008. "Assessing the poverty impacts of remittances with alternative counterfactual income estimates," Discussion Papers Series 375, School of Economics, University of Queensland, Australia.
    4. Simone Bertoli & Francesca Marchetta, 2014. "Migration, Remittances and Poverty in Ecuador," Journal of Development Studies, Taylor & Francis Journals, vol. 50(8), pages 1067-1089, August.
    5. David J. Harding & Lisa Sanbonmatsu & Greg J. Duncan & Lisa A. Gennetian & Lawrence F. Katz & Ronald C. Kessler & Jeffrey R. Kling & Matthew Sciandra & Jens Ludwig, 2023. "Evaluating Contradictory Experimental and Nonexperimental Estimates of Neighborhood Effects on Economic Outcomes for Adults," Housing Policy Debate, Taylor & Francis Journals, vol. 33(2), pages 453-486, March.
    6. Rizwana Siddiqui, 2013. "Impact Evaluation of Remittances for Pakistan: Propensity Score Matching Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 52(1), pages 17-44.
    7. Kostas Mavromaras & Alfiah Hasanah & Silvia Mendolia & Oleg Yerokhin, 2017. "Labour Migration, Food Expenditure, and Household Food Security in Eastern Indonesia," The Economic Record, The Economic Society of Australia, vol. 93, pages 122-143, June.
    8. Leite, Phillippe & Narayan, Ambar & Skoufias, Emmanuel, 2011. "How do ex ante simulations compare with ex post evaluations ? evidence from the impact of conditional cash transfer programs," Policy Research Working Paper Series 5705, The World Bank.
    9. David McKenzie & John Gibson & Steven Stillman, 2007. "Moving to opportunity, leaving behind what? Evaluating the initial effects of a migration policy on incomes and poverty in source areas," New Zealand Economic Papers, Taylor & Francis Journals, vol. 41(2), pages 197-223.
    10. Randazzo, Teresa & Piracha, Matloob, 2019. "Remittances and household expenditure behaviour: Evidence from Senegal∗," Economic Modelling, Elsevier, vol. 79(C), pages 141-153.
    11. Marcel Fafchamps & Forhad Shilpi, 2013. "Determinants of the Choice of Migration Destination," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 388-409, June.
    12. Roland Kangni KPODAR & Maëlan LE GOFF, 2012. "Do Remittances Reduce Aid Dependency?," Working Papers P34, FERDI.
    13. Baldwin, Kate & Bhavnani, Rikhil R., 2013. "Ancillary Experiments: Opportunities and Challenges," WIDER Working Paper Series 024, World Institute for Development Economic Research (UNU-WIDER).
    14. Sylvie Démurger & Shi Li, 2013. "Migration, Remittances, and Rural Employment Patterns: Evidence from China," Research in Labor Economics, in: Labor Market Issues in China, pages 31-63, Emerald Group Publishing Limited.
    15. Calogero Carletto & Jennica Larrison & Çaglar Özden, 2014. "Informing migration policies: a data primer," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 2, pages 9-41, Edward Elgar Publishing.
    16. Nikolova, Milena & Graham, Carol, 2015. "In transit: The well-being of migrants from transition and post-transition countries," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 164-186.
    17. Clemens, Michael A. & Tiongson, Erwin R., 2012. "Split decisions : family finance when a policy discontinuity allocates overseas work," Policy Research Working Paper Series 6287, The World Bank.
    18. Stillman, Steven & McKenzie, David & Gibson, John, 2009. "Migration and mental health: Evidence from a natural experiment," Journal of Health Economics, Elsevier, vol. 28(3), pages 677-687, May.
    19. Mario Liebensteiner, 2014. "Estimating the Income Gain of Seasonal Labor Migration," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 667-680, November.
    20. Clemens, Michael A. & Montenegro, Claudio E. & Pritchett, Lant, 2008. "The place premium : wage differences for identical workers across the US border," Policy Research Working Paper Series 4671, The World Bank.
    21. Imtiaz Arif & Syed Ali Raza & Anita Friemann & Muhammad Tahir Suleman, 2019. "The Role of Remittances in the Development of Higher Education: Evidence from Top Remittance Receiving Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(3), pages 1233-1243, February.

    More about this item

    Keywords

    International migration; remittances; Pakistan.;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lje:journl:v:19:y:2015:i:1:p:47-69. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shahid Salahuddin (email available below). General contact details of provider: https://edirc.repec.org/data/lsecopk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.