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International Migration and its Effect on Labor Supply of the Left-Behind Household Members: Evidence from Nepal

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  • Phadera, Lokendra

Abstract

This paper analyzes the differential impact of migration on labor supply of the left-behind household members in Nepal, where international migration for employment, predominantly a male phenomenon, increased substantially between 2001 and 2011. Using the NLSS III data, this paper extends the analysis further by incorporating the impacts on both extensive and intensive margins and answering the question of if they are not wage-employed, what the remaining members in the household engaging in instead. The paper finds that, in response to outmigration of some family members, women realign their priorities and reallocate their time from market employment to self-employment and home production, possibly filling in the roles vacated by the migrants. In contrast, the income effect dominates the impact of migration on the left-behind men; that is, men value their leisure more because of the remittances from abroad and decrease their overall supply of labor.

Suggested Citation

  • Phadera, Lokendra, 2016. "International Migration and its Effect on Labor Supply of the Left-Behind Household Members: Evidence from Nepal," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235968, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235968
    DOI: 10.22004/ag.econ.235968
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    Cited by:

    1. Bossavie, Laurent & Denisova, Anastasiya, 2018. "Youth Labor Migration in Nepal," Jobs Group Papers, Notes, and Guides 29783617, The World Bank.
    2. Paras Kharel & Jorge Dávalos & Kshitiz Dahal, 2022. "International remittances and nonfarm entrepreneurship among the left‐behind: Evidence from Nepal," Review of Development Economics, Wiley Blackwell, vol. 26(1), pages 208-241, February.
    3. Najeeb,Fatima & Morales,Matias & Lopez-Acevedo,Gladys C., 2020. "Analyzing Female Employment Trends in South Asia," Policy Research Working Paper Series 9157, The World Bank.
    4. Dhruba Bhandari, 2020. "Are Households Utilizing Remittance on Quality Education? An Empirical Study from Nepal," Journal of Development Innovations, KarmaQuest International, vol. 4(1), pages 179-195, July.
    5. Sharma, Hari, 2020. "The effect of emigration and remittances on labour supply of the left-behind: Evidence from Nepal," MPRA Paper 102091, University Library of Munich, Germany.

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    Keywords

    International Development; Labor and Human Capital;

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