Project information
PMMA-12379 Estimating economic effects of emigration and remittances on the left-behind in Cambodia



Abstract


Using propensity score matching with the 2009 Cambodia Socio-Economic Survey of households, this study examines the effects of remittances on indicators of household wellbeing: poverty, consumption and labor participation of non-migrant members. The theoretical framework is built upon a “new economics of labor migration”, hypothesizing that the emigration decision is jointly determined by households and individual migrants and that remittances basically represent a form of contractual arrangements between them. The results indicate that households with at least one migrant member and which receive remittances could reduce their poverty headcount rate by 3-7 percentage points vis-à-vis their matched controls. Remittances also reduce depth and severity of poverty of treated households. On the contrary, remittances generate a 5-9 percent “dependency effect” on working age adults who are employed due to reduced weekly hours worked. The impact of remittances on labor participation and salary income is, however, vulnerable to unobservable factors.

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Members
 Vutha Hing
 PHANN Dalis  |  Roth T.M.S Vathana  |  Sreymom Sum  |
Proposal
Final reports
Working Paper
Policy briefs
External publications