How does Labour Migration Affect Living Standards of Household Members Left Behind? The Evidence from Vietnam

Using the difference-in-differences method and data from the Vietnam Household Living Standards Survey in 2016 and 2018, this article assesses the impacts of labour migration on living standards and income-generating activities of households having members migrating for work. The research results indicate that labour migration significantly improved income and expenditure of migrant-sending households while substantially altering income composition, albeit with minimal influence on expenditure structures. The role of income from agricultural production diminished while the dependence on remittances from migrant members increased, posing substantial risks to these households when the migrant members stopped sending remittances. Labour migration also amplified income and expenditure inequality within migrant households. The poverty status of households was not affected by the labour migration activities of their members. The absence of migrant members did not lead to labour shortages but instead increased the labour productivity of the household. Furthermore, labour migration encouraged remaining household members to invest in labour-intensive income-generating activities such as crop cultivation and animal husbandry.