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Remittances and expenditure patterns of the left behinds in rural China

Sylvie Démurger () and Xiaoqian Wang

China Economic Review, 2016, vol. 37, issue C, 177-190

Abstract: This paper investigates how private transfers from internal migration in China affect the expenditure behavior of families left behind in rural areas. Using data from the Rural–Urban Migration in China (RUMiC) survey, we assess the impact of remittances sent to rural households on consumption-type and investment-type expenditures. We apply propensity score matching to account for the selection of households into receiving remittances, and estimate average treatment effects on the treated. We find that remittances supplement income in rural China and lead to increased consumption rather than increased investment. Moreover, we find evidence of a strong negative impact on education expenditures, which could be detrimental to sustaining investment in human capital in poor rural areas in China.

Keywords: Labor migration; Expenditure behavior; Left-behind; Propensity score matching; China (search for similar items in EconPapers)
JEL-codes: O15 J22 R23 D13 O53 (search for similar items in EconPapers)
Date: 2016
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Working Paper: Remittances and expenditure patterns of the left behinds in rural China (2016) Downloads
Working Paper: Remittances and expenditure patterns of the left behinds in rural China (2016)
Working Paper: Remittances and expenditure patterns of the left behinds in rural China (2016) Downloads
Working Paper: Remittances and Expenditure Patterns of the Left Behinds in Rural China (2016) Downloads
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China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

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