IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/35943.html
   My bibliography  Save this paper

Impact of rural to urban labour migration and the remittances on sending household welfare: a Sri Lankan case study

Author

Listed:
  • Ranathunga, Seetha P.B.

Abstract

Migration is the oldest action against poverty. Thus, temporary labour migration from rural to urban areas is a common phenomenon in the developing world. Since 1977, with more open economic policies, there has been a huge trend of young people migrating from rural to urban for industrial employment in Sri Lanka. Export Processing Zones (EPZ) are the main attraction for this temporary labour migration. The sample survey was conducted in Sri Lanka from February to April 2011, covering 377 respondents who have temporarily migrated from rural farm households in 20 urban factories. The paper employs Probit, Tobit analysis in an effort to examine the determinants of remittances and usage of remittances in sending communities. Results demonstrated the remittance accounts for one fifth of household income in the place of origin. The decision to remit regularly depends positively on the monthly income, number of students of the household, and negatively depends on the amount of farmland owned by the household.

Suggested Citation

  • Ranathunga, Seetha P.B., 2011. "Impact of rural to urban labour migration and the remittances on sending household welfare: a Sri Lankan case study," MPRA Paper 35943, University Library of Munich, Germany, revised 14 Dec 2011.
    • Handle: RePEc:pra:mprapa:35943
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/35943/1/MPRA_paper_35943.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nong Zhu & Xubei Luo, 2010. "The impact of migration on rural poverty and inequality: a case study in China," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 191-204, March.
    2. Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr. & Lopez-Feldman, Alejandro, 2005. "Remittances, Inequality and Poverty: Evidence from Rural Mexico," Working Papers 60287, University of California, Davis, Department of Agricultural and Resource Economics.
    3. Prema-chandra Athukorala, 1990. "International Contract Migration And The Reintegration of Return Migrants, The Experience of Sri Lanka," Working Papers 1990.09, School of Economics, La Trobe University.
    4. Everett Lee, 1966. "A theory of migration," Demography, Springer;Population Association of America (PAA), vol. 3(1), pages 47-57, March.
    5. John Gibson & David McKenzie & Steven Stillman, 2011. "The Impacts of International Migration on Remaining Household Members: Omnibus Results from a Migration Lottery Program," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1297-1318, November.
    6. Judith Shaw, 2010. "From Kuwait to Korea: the diversification of Sri Lankan labour migration," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(1), pages 59-70.
    7. Orbeta, Aniceto Jr. C. & Zosa, Victorina, 2009. "The Social and Economic Impact of Philippine International Labor Migration and Remittances," Discussion Papers DP 2009-32, Philippine Institute for Development Studies.
    8. Banerjee, Biswajit, 1984. "The probability, size and uses of remittances from urban to rural areas in India," Journal of Development Economics, Elsevier, vol. 16(3), pages 293-311, December.
    9. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
    10. Taylor, J. Edward & Martin, Philip L., 2001. "Human capital: Migration and rural population change," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 9, pages 457-511, Elsevier.
    11. Wei Ha & Junjian Yi & Junsen Zhang, 2009. "Inequality and Internal Migration in China: Evidence from Village Panel Data," Human Development Research Papers (2009 to present) HDRP-2009-27, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Jul 2009.
    12. de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
    13. Brown, Richard P. C., 1997. "Estimating remittance functions for Pacific Island Migrants," World Development, Elsevier, vol. 25(4), pages 613-626, January.
    14. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    15. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-740, September.
    16. Haizheng Li & Steven Zahniser, 2002. "The Determinants of Temporary Rural-to-Urban Migration in China," Urban Studies, Urban Studies Journal Limited, vol. 39(12), pages 2219-2235, November.
    17. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
    18. Arjan de Haan, 1999. "Livelihoods and poverty: The role of migration - a critical review of the migration literature," Journal of Development Studies, Taylor & Francis Journals, vol. 36(2), pages 1-47.
    19. Richard A. Easterlin, 1980. "Population and Economic Change in Developing Countries," NBER Books, National Bureau of Economic Research, Inc, number east80-1, June.
    20. Aziz Atamanov & Marrit Van Den Berg, 2012. "Rural Nonfarm Activities in Central Asia: A Regional Analysis of Magnitude, Structure, Evolution and Drivers in the Kyrgyz Republic," Europe-Asia Studies, Taylor & Francis Journals, vol. 64(2), pages 349-368.
    21. Stark, Oded & Levhari, David, 1982. "On Migration and Risk in LDCs," Economic Development and Cultural Change, University of Chicago Press, vol. 31(1), pages 191-196, October.
    22. de la Briere, Benedicte & Sadoulet, Elisabeth & de Janvry, Alain & Lambert, Sylvie, 2002. "The roles of destination, gender, and household composition in explaining remittances: an analysis for the Dominican Sierra," Journal of Development Economics, Elsevier, vol. 68(2), pages 309-328, August.
    23. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
    24. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66(4), pages 281-281.
    25. J. Edward Taylor & Mateusz Filipski, 2011. "The Impact of Migration Policies on Rural Household Welfare in Mexico and Nicaragua," OECD Development Centre Working Papers 298, OECD Publishing.
    26. Michael Todaro, 1980. "Internal Migration in Developing Countries: A Survey," NBER Chapters, in: Population and Economic Change in Developing Countries, pages 361-402, National Bureau of Economic Research, Inc.
    27. Mendola, Mariapia, 2008. "Migration and technological change in rural households: Complements or substitutes?," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 150-175, February.
    Full references (including those not matched with items on IDEAS)

    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. Emily Rauscher & Byeongdon Oh, 2021. "Going Places: Effects of Early U.S. Compulsory Schooling Laws on Internal Migration," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 40(2), pages 255-283, April.
    2. Görlich, Dennis & Trebesch, Christoph, 2006. "Mass migration and seasonality: evidence on Moldova's labour exodus," Kiel Advanced Studies Working Papers 435, Kiel Institute for the World Economy (IfW Kiel).
    3. repec:got:cegedp:56 is not listed on IDEAS
    4. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 17, pages 1135-1198, Elsevier.
    5. Giesbert, Lena, 2007. "Seeking Opportunities: Migration as an Income Diversification Strategy of Households in Kakamega District in Kenya," GIGA Working Papers 58, GIGA German Institute of Global and Area Studies.
    6. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    7. Matthieu Delpierre, 2012. "The impact of liquidity constraints and imperfect commitment on migration decisions of offspring of rural households," Review of Economics of the Household, Springer, vol. 10(1), pages 153-170, March.
    8. Tineke Fokkema & Eralba Cela & Elena Ambrosetti, 2013. "Giving from the Heart or from the Ego? Motives behind Remittances of the Second Generation in Europe," International Migration Review, Wiley Blackwell, vol. 47(3), pages 539-572, September.
    9. Kaczmarczyk, Pawel, 2013. "Money for Nothing? Ukrainian Immigrants in Poland and their Remitting Behaviors," IZA Discussion Papers 7666, Institute of Labor Economics (IZA).
    10. repec:dau:papers:123456789/5559 is not listed on IDEAS
    11. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
    12. I-Ling Shen & Frédéric Docquier & Hillel Rapoport, 2010. "Remittances and inequality: a dynamic migration model," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(2), pages 197-220, June.
    13. Kazi Abdul, Mannan & V.V, Kozlov, 2001. "The Cost-Benefit Analysis of International Migration: Modelling and Empirical Study between Bangladesh and Italy," MPRA Paper 103479, University Library of Munich, Germany, revised 2001.
    14. Eva-Maria Egger & Julie Litchfield, 2019. "Following in their footsteps: an analysis of the impact of successive migration on rural household welfare in Ghana," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 9(1), pages 1-22, December.
    15. Juna Miluka & Gero Carletto & Benjamin Davis & Alberto Zezza, 2010. "The Vanishing Farms? The Impact of International Migration on Albanian Family Farming," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 140-161.
    16. Bettin, Giulia & Paçacı Elitok, Seçil & Straubhaar, Thomas, 2012. "Causes and consequences of the downturn in financial remittances to Turkey: A descriptive approach," Edition HWWI: Chapters, in: Paçacı Elitok, Seçil & Straubhaar, Thomas (ed.), Turkey, migration and the EU, volume 5, pages 133-166, Hamburg Institute of International Economics (HWWI).
    17. Ning Jia & Raven Molloy & Christopher Smith & Abigail Wozniak, 2023. "The Economics of Internal Migration: Advances and Policy Questions," Journal of Economic Literature, American Economic Association, vol. 61(1), pages 144-180, March.
    18. Arusha Cooray & Friedrich Schneider, 2016. "Does corruption promote emigration? An empirical examination," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 293-310, January.
    19. Taylor, J. Edward & Wyatt, TJ, 1992. "Migration, Assets and Income Inequality in a Diversified Household-Farm Economy: Evidence from Mexico," Working Papers 232415, University of California, Davis, Department of Agricultural and Resource Economics.
    20. repec:dau:papers:123456789/2574 is not listed on IDEAS
    21. Sule Akkoyunlu & Boriss Siliverstovs, 2007. "The Role of Remittances in Migration Decision: Evidence from Turkish Migration," Discussion Papers of DIW Berlin 691, DIW Berlin, German Institute for Economic Research.
    22. Matthieu Delpierre & Bertrand Verheyden, 2014. "Remittances, savings and return migration under uncertainty," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-43, December.
    23. Richter, Susan M., 2008. "The Insurance Role of Remittances on Household Credit Demand," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6261, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    Keyword: Rural urban migration; remittances; sending communities; Sri Lanka;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:35943. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.