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Rural–Urban Migration and Remittances in Vietnam: Evidence from Migrant Tracer Data

In: Rural-Urban Migration in Vietnam

Author

Listed:
  • Diep Phan

    (Beloit College)

  • Ian Coxhead

    (University of Wisconsin-Madison)

Abstract

We examine the remittance behaviour of rural–urban migrants in Vietnam using a unique dataset that links the 2012 round of the Vietnam Household Living Standards Survey (VHLSS) with a 2013 tracer study of migrants from VHLSS households. We estimate factors associated with remittances, taking migrant selection issues into account. Consistent with the altruism hypothesis for remittances, we find that remittance flows are larger when migrants have higher wages and less attachment to the destination, and when rural households have lower per capita earning capacity. We do not find support for a self-interest remittance motive. We also estimate the impacts of net remittances on per capita income in migrant-sending rural households, accounting for the endogeneity of remittances. We find that migration and remittances increase the incomes of rural households. However, the estimated direct income effects are small, and become smaller still as migrants become more established in their new place of residence. Members of ethnic minority groups gain far less than others from migration and remittances. More data and research are needed to broaden these assessments to include non-economic benefits and the costs of migration.

Suggested Citation

  • Diep Phan & Ian Coxhead, 2019. "Rural–Urban Migration and Remittances in Vietnam: Evidence from Migrant Tracer Data," Population Economics, in: Amy Y. C. Liu & Xin Meng (ed.), Rural-Urban Migration in Vietnam, pages 167-188, Springer.
    • Handle: RePEc:spr:popchp:978-3-319-94574-3_7
    DOI: 10.1007/978-3-319-94574-3_7
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    Cited by:

    1. Samira Salam & Md. Abul Kalam Azad & Md. Abdus Salam & Mohammad M. Islam, 2020. "Rural-to-Urban Migration and Realization of Expected Better Life in Bangladesh: An Empirical Study in Rajshahi City Corporation," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 10(10), pages 612-622, October.
    2. Feeny, Simon & Mishra, Ankita & Trinh, Trong-Anh & Ye, Longfeng & Zhu, Anna, 2021. "Early-Life exposure to rainfall shocks and gender gaps in employment: Findings from Vietnam," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 533-554.
    3. Pan, Zehan & Xu, Wei & Wang, Guixin & Li, Sen & Yang, Chuankai, 2020. "Will remittances suppress or increase household income in the migrant-sending areas? Modeling the effects of remittances in rural China," China Economic Review, Elsevier, vol. 61(C).

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