International Migrants' Remittances and Welfare Status of the Left‐Behind Families in Turkey

In this study, micro implications of remittances are examined based on the data from the 1996 Turkish International Migration Survey (TIMS‐96), part of a comprehensive study of Eurostat and the Netherlands Interdisciplinary Demographic Institute (NIDI). Results of the study imply that migrant savings are generally used for satisfying basic consumption needs. Patterns of expenditures suggest that for 12 percent of all the households receiving remittances, about 80 percent used remittances to improve their standard of living. Considering the variation by regions, it is observed that households in less‐developed regions spent more on daily expenses than those in developed regions. This suggests that daily expenses of households in less developed regions depend significantly on remittances received by households. Moreover, remittances have a positive impact on household welfare; households receiving remittances are found to be better off than nonremitting households. This suggests that migration and remittances have positive indirect effects on incomes of emigrant households. A considerable part of the relevant literature argues that remittances are mostly spent on consumption, housing and land and are not used for productive investment that would contribute to long‐run development. This conclusion often rests on arbitrary definitions of “productive investments.” Access to better nutrition and allocation of more resources to education are, without question, forms of productive investment. Although emigration does not serve as a solution to the problems of national development, it is evident that remittances generate considerable welfare effects, at least for the remittance‐receiving population.     

Where do Remittances Go in Household Consumption? Empirical Evidence from Sri Lanka-Wide Micro-data

Private internal and international remittances are a major source of household money in Sri Lanka, yet their impact on household welfare has long been a research gap. Based on the Migration and Development Theory, this article examines how private remittances affect household expenditure behaviour, using nationally representative microdata and applying quasi-experimental methods. Private remittances have significantly increased household per-capita expenditure and initiated positive behavioural changes via increased allocations for basic needs, human and physical capital investment. Compared with internal remittances, the impact of international remittance shows a strong potential for reducing poverty incidence and improving people's well-being: households in richer/richest expenditure quartiles and urban households invest in education, which supports the country's long-standing record of education. Rural households demonstrate favourable changes in spending behaviour with receiving private remittances. From a public policy standpoint, government favours migration so that remittances are more likely to flow. A proper remittance-transfer mechanism to encourage smooth remittance is thus required.     

Residential Remittances and Food Security in the Upper West Region of Ghana

In recent years, out migration from the Upper West Region to the southern belt of Ghana for farming has become commonplace. The natural question that has arisen is: what is the potential impact of remittances from this migration pattern on food security in the region? Using multivariate ordered logistic regression this study assesses the linkage between remittances and household food security (derived using the HFIAS) among urban and rural households (n=1,438) in the region. The findings show that urban remittance‐receiving households and rural remittance and non‐remittance receiving households were more likely (OR=2.44, p<0.05; OR=2.46, p<0.001; and OR=1.49, p<0.1, respectively) to report being more severely food‐insecure than urban non‐remittance receiving households. The findings demonstrate that household strategies such as migration and remittances on their own are not sufficient to ameliorate the precarious food insecurity situation of the region. The study calls for development of alternative livelihoods in the region.     

Overseas workers' remittances in Asian development

In recent years, overseas workers from Asia have been sending remittances of about $8 billion annually to their home countries. These remittances are an important source of precious foreign exchange for the major labor-exporting countries. The overall development impact of remittances, however, has not been well established. Remittances are spent primarily on day-to-day consumption expenditures, housing, land purchase, and debt repayment. Although only a small proportion of remittances are directed into productive investments, this does not warrant the conclusion that the developmental value of remittances is negligible. In fact, remittances spent on domestic goods and services Asia provide an important stimulus to indigenous industries and to the economies of the labor supplying countries. It is these broader macroeconomic benefits of remittances which seem to have been largely ignored in the literature, and this perhaps explains the pessimistic view of the developmental value of remittances. Reservations concerning the effects of remittance on the sending countries include the fears that 1) expenditure patterns of remittance receiving households may create a demonstration effect whereby nonmigrant households may increase consumption, 2) remittance inflow will increase income and wealth inequalities, 3) remittance expenditures may result in inflation, 4) remittances may produce only short-term fluctuations in long-term economic development, and 5) remittances may adversely affect agricultural development.     

Remittances as a Shield to Vulnerable Households in Macedonia: The Case When the Instrument is Not Strictly Exogenous

The objective of this article is to investigate whether remittances sent to Macedonia have a role to play for shielding vulnerable households, by highlighting the importance of a strictly exogenous instrument in an IV context. Results suggest that remittance‐receiving households have, on average, a 20.1 per cent lower vulnerability than non‐receiving ones. However, if one has a reasonable belief that vulnerability and the instrument are determined simultaneously, or are directly correlated due to the existence of a third unobservable factor, then the shielding effect of remittances for vulnerable households remains up to the ninth percentage of direct influence and with a reducing magnitude, and then disappears.     

The Decline of International Migration as an Economic Force in Rural Areas: A Mexican Case Study

Since 2000, and especially since 2007, there has been a reduction in the importance of international migration and remittances in major global sending regions as a result of recession in receiving countries, anti‐immigrant policies, and improvement in economic opportunities in origin countries. A household survey in five rural communities in Zacatecas, Mexico, in 1995 and again in 2009 exemplifies these trends. Among youthful adults likely to have first migrated in the decade prior to each of these years, there was a significant drop in the proportion of active migrants. Among the active migrants, stays abroad became longer and more permanent, and their households exhibited fewer remittances, less family business ownership, and fewer local purchases, in 2009 compared to 1995. Finally, non‐migrant households greatly improved their economic status in relation to migrant households over the period, reaching approximate parity with their migrant counterparts.     

Migration Plans and Received Remittances: Evidence from Fiji and Tonga1

This paper investigates the relationship between remittances and migration intentions in the source country using data from households in the Pacific island countries of Tonga and Fiji. Unlike previous research it accounts for potential endogeneity in the relationship between remittances and intentions and also includes households that receive remittances but do not have current migrants. We find a positive impact of remittances on intentions. The impact of remittances on intentions is stronger in a country with a longer history of migration and stronger in households with current migrants than those without migrants. These results provide new evidence on the role of remittances in the development of migration chains.     

Migrant remittances and household wellbeing in urban Zimbabwe

Evidence from household surveying in December 2005 in Harare and Bulawayo, Zimbabwe, indicates that a wide network of international migrant remitters are ameliorating the economic crisis in Zimbabwe by sending monetary and in-kind transfers to over 50 per cent of urban households. The research combines quantitative measurement of scale and scope, with demographic and qualitative narrative to build a holistic picture of the typography of receiving and non-receiving households. A complex set of interrelated variables helps to explain why some households do and others do not receive income and goods from people who are away, and the economic and social extent of their subsequent benefit from them. Moreover, the mixed methods approach is designed to capture inter-household and likely macroeconomic effects of how households receive their goods and money; and of how they subsequently exchange (if applicable), store and spend it. Evidence emerges of a largely informal, international social welfare system, but one which is not without adverse inter-household effects for some. These include suffering exclusion from markets suffering from inflationary pressures, not least as a result of other people’s remittances. This paper explores the role of remittances, within this internationalised informal welfare system which we can map from our household survey, in reframing vulnerability and marginalization differentially among and between our subject households.     

Remittances in Ghana: Origin, Destination and Issues of Measurement

Few studies on remittances have focused on sub-Saharan Africa. This paper analyses a nationwide survey of 5,998 households to determine the characteristics of both internal and overseas remittances in Ghana. Particular attention is paid to the poverty-alleviation potential of remittances. Furthermore, this study uses a smaller scale pilot project with a matched sample of senders and receivers of remittances to identify some problems with using household-level surveys to assess the volume and impact of overseas remittances, and offers some suggestions as to how to handle these problems. The paper estimates that foreign remittances may be three times as large as Bank of Ghana estimates, bringing Ghana on par with large remittance receiving countries such as the Philippines and Mexico. The paper concludes that while foreign remittances are larger in value, locally sent remittances reach poorer segments of the population. Both foreign and local remittances are unevenly geographically distributed, being received more in the centre and southern regions than in northern Ghana where the poorest regions are. The paper argues a need to study multiplier effects of foreign remittances, as these can be large and eventually accrue to rural populations.     

The Use of Remittance Income in Mexico

Immigration affects sending countries through the receipt of remittance income. The impact of these cash transfers on households and communities has brought attention to remittances as a development mechanism. This study attempts to understand the degree to which household consumption is affected by the receipt of remittance income and the ways in which the broader communities may be impacted. Using household income and expenditure data for Mexico, expenditure patterns of remittance‐receiving households are analyzed. Regression analysis indicates that remittance‐receiving households spend a greater share of total income on durable goods, healthcare, and housing.     

Use of Overseas Migrants' Remittances to the Extended Family for Business Investment: A Research Note1

Abstract The extended family's role in economic improvement has been extensively debated. From a modernization theory perspective, the extended family is viewed as an institutional obstacle to economic progress, while a social capital perspective suggests that it is an “engine” insofar as it permits individuals to activate networks and pool resources beyond their own. This paper examines, from these perspectives, extended family influences on the use of remittances from transnational migrants. The research asks whether family influences are positive or negative and are more or less important than other factors in determining business investments. The research draws on interviews with 170 family heads in a small community in Pakistan. The results show that relatively little remittance income from family members working in the Middle East was channeled into business investments, despite government incentives offered to migrant households. Most of the extended family measures used in the research are statistically unimportant in explaining level of business investment. There thus appears to be little support for either modernization theory or social capital arguments on the role of the extended family. Of the five operationalized extended family dimensions only one was related to business investment, and that positively. However, “family” considerations are not irrelevant. The best predictors of business investment were a preexisting level of business exposure/experience within the family and whether or not the family head was aware of business investment opportunities. The results raise questions about the need to reconceptualize family influences beyond the formal dimensions of extended family structure.     

International Migrant Remittances and Labour Supply in Nigeria

The study analyses how remittances to Nigeria affect the labour supply of recipients using Propensity Score Matching (PSM) and a Log‐Linear regression model, with data from the 2013 Nigerian General Household Survey. The PSM results show that for the entire sample, the difference between the average amount of labour supplied per week by those that receive remittances and the amount they would have supplied without remittances is insignificant. The marginal impact analysis also shows that, ceteris paribus, the average labour supply for all recipients is inelastic to remittances. The results from the sub‐group analysis, however, show that receiving remittances negatively affects the labour supply of the self‐employed in agriculture, teenagers and the elderly. These results led us to the recommendation that policies to increase the inflow of remittances should be encouraged but in tandem with programmes to educate farmers on the benefit of investing remittances received in their farming business.     

Remittances and inequality in Cape Verde: the impact of changing family organization

There is a risk that remittances exacerbate socio‐economic inequality among the recipients. In this case study of a Cape Verdean community I explore how variations in family organization interact with the distribution of remittances and their effects on local social stratification. Formerly, the typical migrant was male and directed the main part of his remittances to a nuclear household he had left behind. Households that included a male migrant were able to raise their standard of living over that of households without a migrant member. Today, relationships between women and men have become increasingly unstable and long‐lasting transnational family ties are now rarely based on a conjugal relationship. Both women and men migrate and they often start up a new family abroad. Consequently, when migrants send remittances to Cape Verde they do not invest in their own future lives as they did in the past. Instead, they try to support ageing parents and young children left behind. This means that migrants often have economic obligations to several households and that they are therefore only able to send limited amounts of money to each. This implies, first, that many households are recipients of remittances and, second, that they normally only receive small sums. In conclusion, it may be said that these changes in family organization have reduced the risk that remittances will exacerbate inequality.     

Migration, remittances and rural development: findings of a case study in the Indian Punjab

Rural household survey data in the Ludhiana district of the Indian Punjab was used to study the nature and role of remittances in rural development. Of the 1646 outmigrants from the area since 1961, the 949 women who migrated for marriage and children under 12 years old were excluded from the study. Nearly all husbands who outmigrated had sent remittances. Parents and grandparents were 2nd and 3rd most likely to remit, but their numbers were small. Education did not correlate with remittance. Distance and time since emigration did not affect remittance. The frequency and the size of remittances are discussed. Remittances to outmigrants were insignificant. The remittances from outmigrants seem to raise the incomes and the levels of living of rural households. The remittances serve the purpose of redistributing income from urban to rural areas. Remittances also widened the gap between rich and poor in the rural areas because the better-off groups were more likely to receive remittances than the poorer groups. Most of the money sent from outmigrants was spent on consumable goods, food and clothing. Only a small proportion was spent on productive investment. This was usually done by farming families who invested in land or farm necessities. It is concluded that remittances from outmigrants can have a positive effect on the rural economies. Investment opportunities for nonagricultural families must be provided.     

New evidence on the role of remittances on healthcare expenditures by Mexican households

Using Mexico’s 2002 wave of the Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH), we find that international remittances raise health care expenditures. Approximately 6 pesos of every 100 peso increment in remittance income are spent on health. The sensitivity of health care expenditures to variations in the level of international remittances is almost three times greater than their sensitivity to changes in other sources of household income. Furthermore, health care expenditures are less responsive to remittance income among lower-income households. Since the lower responsiveness may be partially due to participation of lower-income households in public programs like PROGRESA (now called Oportunidades), we also analyze the impact of remittances by health care coverage. As expected, we find that households with some kind of health care coverage—either through their jobs or via participation in PROGRESA—spend less of remittance income increments on health care than households lacking any health care coverage. Hence, remittances may help equalize health care expenditures across households with and without health care coverage.     

The new economics of labour migration and the role of remittances in the migration process

This analysis considers international migration remittances and their impact on development in migrant-sending areas. The new economics of labor migration (NELM) posit that remittances lessen production and market constraints faced by households in poor developing countries. The article states that remittances may be a positive factor in economic development, which should be nurtured by economic policies. The impact of remittances and migration on development varies across locales and is influenced by migrants' remittance behavior and by economic contexts. Criteria for measuring development gains may include assessments of income growth, inequity, and poverty alleviation. It is hard to gauge the level of remittances, especially when remittances may not flow through formal banking systems. The International Monetary Fund distinguishes between worker remittances sent home for over 1 year; employee compensation including the value of in-kind benefits for under 1 year; and the net worth of migrants who move between countries. This sum amounted to under $2 billion in 1970 and $70 billion in 1995. The cumulative sum of remittances, employee compensation, and transfers was almost $1 trillion, of which almost 66% was worker remittances, 25% was employee compensation, and almost 10% was transfers during 1980-95. Total world remittances surpass overseas development assistance. Remittances are unequally distributed across and between countries. Migration research does not adequately reveal the range and complexity of impacts. Push factors can limit options for use of remittances to stimulate development.     

Labor Migration,Remittances and Household Income: A Comparison between Filipino and Filipina Overseas Workers1

The major purpose of the research is to examine gender differences in patterns of labor market activity, economic behavior and economic outcomes among labor migrants. While focusing on Filipina and Filipino overseas workers, the article addresses the following questions: whether and to what extent earnings and remittances of overseas workers differ by gender; and whether and to what extent the gender of overseas workers differentially affects household income in the Philippines. Data for the analysis were obtained from the Survey of Households and Children of Overseas Workers (a representative sample of households drawn in 1999–2000 from four major “labor sending” areas in the Philippines). The analysis focuses on 1,128 households with overseas workers. The findings reveal that men and women are likely to take different jobs and to migrate to different destinations. The analysis also reveals that many more women were unemployed prior to migration and that the earnings of women are, on average, lower than those of men, even after controlling for variations in occupational distributions, country of destination, and sociodemographic attributes. Contrary to popular belief, men send more money back home than do women, even when taking into consideration earnings differentials between the genders. Further analysis demonstrates that income of households with men working overseas is significantly higher than income of households with women working overseas and that this difference can be fully attributed to the earnings disparities and to differences in amount of remittances sent home by overseas workers. The results suggest that gender inequal‐     

Remittances for Financial Access: Lessons from Latin American Microfinance

The potential of migrant remittances to foster access to financial services for low‐income households has been largely unexplored. Comparing three Latin American countries – the Dominican Republic, El Salvador and Mexico – this inter‐disciplinary study links research on remittances and microfinance with multi‐actor governance approaches. While the context of high remittance‐dependence provides similar challenges in all cases, it finds remarkable variety both in the structure of the remittances market and the actors involved in microfinance and in the role governments play. It explains the diverging success of MFIs in remittance markets by pointing to the interplay of for‐profit, non‐profit and state actors embedded within the specific market structures of each country.     

Invisible Development? Remittances for Housing and Transnational Reproduction Strategies among Migrant Households in Colombia

In recent years, the Colombian government has embraced the migration‐development agenda by designing programmes to channel remittances to key sectors such as housing and finance,in an attempt to institutionalise migrant households’ transnational economic practices. However, little is known about migrant households’ multifaceted transnational practices, their broader impact on households’ and localities’ socioeconomic development and migrants’ engagement with these migration‐for‐development programmes. Drawing on qualitative data collected along the Colombia‐UK migration network, this paper contrasts the narrow interpretation of development that underpins the migration‐development agenda, as exemplified by the remittances‐for‐housing programmes implemented in Colombia, with the more nuanced social and economic contributions that remittance‐financed housing investments have for migrant households’ and communities’ socioeconomic development. Thus, it provides a more nuanced interpretation of development to account for the often invisible, socioeconomic spinoffs that occur in the process of migrant households’ attempts to produce and reproduce their livelihoods transnationally.     

Remittances and the Maintenance of Dual Social Worlds: The Transnational Working Lives of Migrants in Greater London

Most research on remittances focuses on economic motivations, with little emphasis on the social contexts in which the remittance economy operates. Through an analysis of in‐depth interviews with migrant workers in a London hotel and hospital, we examine how migrants’ familial and social relationships in both sending and receiving countries inform the decision to send remittances. We suggest that remittances are a mechanism through which migrants are able to fulfil multiple obligations to families and places of origin, while also enhancing their own economic status and future. First, satisfying the cultural expectation of sending remittances helps migrants maintain their social worlds at “home”. Second, we observed that both positive and negative changes in power and resources influence the decision to send remittances by motivating migrants to invest in their social position in either their home or receiving country. In sum, we argue that the migrants’ social experience in the United Kingdom might be just as predictive of remittance behaviour as their economic and social status in the country of origin. We, therefore, call for a need to move beyond the often one‐sided concern with development by concentrating on the overlapping social worlds of migrants.