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Low-Skilled Labor Migration in Tajikistan: Determinants and Effects on Expenditure Patterns

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  • Kristina Meier

Abstract

It is often assumed that international labor migration from Tajikistan, while having no noticeable effects on investment (usually defined as medium and long-term consumption, such as education, or investment into housing or business), on average leads to an increase in short-term consumption, mostly food. In this paper, a simple household-level model determining the migration decision is developed and tested empirically. In a second step, the effect of low-skilled labor migration on household expenditure shares is analyzed using 2SLS. While only weak effects of migration measured by a simple dummy are visible, repeating the analysis using the length of the migration spell instead, as well as its squared term, reveals that labor migration apparently takes a while to "kick in" and become profitable to those remaining at home. The observed long-term effects on household consumption patterns, albeit being rather small, actually speak in favour of investment of remittances, with the respective shares increasing over time, while the budget share spent on food slowly decreases.

Suggested Citation

  • Kristina Meier, 2014. "Low-Skilled Labor Migration in Tajikistan: Determinants and Effects on Expenditure Patterns," Discussion Papers of DIW Berlin 1433, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1433
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.492895.de/dp1433.pdf
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    Cited by:

    1. Barbara Dietz & Kseniia Gatskova & Artjoms Ivlevs, 2015. "Emigration, Remittances and the Education of Children Staying Behind: Evidence from Tajikistan," Working Papers 354, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).

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    More about this item

    Keywords

    labor migration; remittances; consumption shares; Tajikistan;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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