Migration, remittances and household welfare in Ethiopia

Lisa Andersson (lisa.andersson@socarb.su.se)

No 2014-004, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: This paper investigates the effect of international remittances and migration on household welfare in Ethiopia. We employ both subjective a households subjective economic well-being and objective measures asset holdings and asset accumulation to define household welfare. A matching approach is applied to address self-selection, and by exploiting information before and after the households began receiving remittances, the study sheds light on the changes in welfare associated with international migration and remittances. The results reveal that remittances have a significant impact on a welfare variable that has previously not received much attention in the migration literature, namely household subjective economic well-being. In addition, we find that remittances have positive effects on consumer asset accumulation, especially in rural areas, but no effect on productive assets.

Keywords: migration; remittances; household welfare; economic development; human development; income distribution; asset acculumation; Ethiopia (search for similar items in EconPapers)
JEL-codes: F22 F24 O15 (search for similar items in EconPapers)
Date: 2014-01-31
New Economics Papers: this item is included in nep-dev, nep-hap, nep-int, nep-mig and nep-sog
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2014004

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