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Work-related migration and poverty reduction in Nepal

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  • Lokshin, Michael
  • Bontch-Osmolovski, Mikhail
  • Glinskaya, Elena

Abstract

Using two rounds of nationally representative household survey data in this study, the authors measure the impact on poverty in Nepal of local and international migration for work. They apply an instrumental variable approach to deal with nonrandom selection of migrants and simulate various scenarios for the different levels of work-related migration, comparing observed and counterfactual household expenditure distribution. The results indicate that one-fifth of the poverty reduction in Nepal occurring between 1995 and 2004 can be attributed to increased levels of work-related migration and remittances sent home. The authors also show that while the increase in work migration abroad was the leading cause of this poverty reduction, internal migration also played an important role. The findings show that strategies for economic growth and poverty reduction in Nepal should consider aspects of the dynamics of domestic and international migration.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4231.

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Date of creation: 01 May 2007
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Handle: RePEc:wbk:wbrwps:4231

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Keywords: Population Policies; Anthropology; Rural Poverty Reduction; Consumption; Small Area Estimation Poverty Mapping;

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References

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Citations

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Cited by:
  1. Botezat, Alina & Pfeiffer, Friedhelm, 2014. "The impact of parents migration on the well-being of children left behind: Initial evidence from Romania," ZEW Discussion Papers 14-029, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Chakra P. Acharya & Roberto Leon-Gonzalez, 2012. "The Impact of Remittance on Poverty and Inequality: A Micro-Simulation Study for Nepal," GRIPS Discussion Papers 11-26, National Graduate Institute for Policy Studies.
  3. Tiwari, Sailesh & Bhattarai, Keshav, 2011. "Migration, remittances and forests : disentangling the impact of population and economic growth on forests," Policy Research Working Paper Series 5907, The World Bank.
  4. Francesca MARCHETTA & Simone BERTOLI, 2014. "Migration, remittances and poverty in Ecuador," Working Papers 201407, CERDI.
  5. Orbeta, Aniceto Jr. C., 2008. "Economic Impact of International Migration and Remittances on Philippine Households: What We Thought We Knew, What We Need to Know," Discussion Papers DP 2008-32, Philippine Institute for Development Studies.
  6. Lokshin, Michael & Glinskaya, Elena, 2008. "The effect of male migration for work on employment patterns of females in nepal," Policy Research Working Paper Series 4757, The World Bank.
  7. Adams, Richard H., Jr. & Cuecuecha, Alfredo & Page, John, 2008. "The impact of remittances on poverty and inequality in Ghana," Policy Research Working Paper Series 4732, The World Bank.
  8. Adams, Richard H. Jr., 2005. "Remittances, household expenditure and investment in Guatemala," Policy Research Working Paper Series 3532, The World Bank.
  9. Adams, Richard H. & Cuecuecha, Alfredo, 2013. "The Impact of Remittances on Investment and Poverty in Ghana," World Development, Elsevier, vol. 50(C), pages 24-40.

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