The Impact of Gender-Specific Migration and Remittances on Household Poverty Reduction in Lao PDR

Poverty is a longstanding developmental challenge in Lao PDR. Periodic studies suggest that migration and subsequent remittances play a crucial role in households’ livelihoods. This study examines the impact of migration and remittances on household income and poverty incidence in Lao PDR by focusing on gender-specific differences. Using Propensity Score Matching (PSM) to control for selection bias, the analysis compares migrant households with non-migrant households and households receiving remittances with those not receiving remittances. The results indicate that migration significantly enhances household income, with households with migrants seeing an average income increase of 2.9 million Kips over households without migrants. Gender analysis shows households with female and male migrants experience income increases of approximately 2.5 and 2.9 million Kips, respectively, compared to households without migrants. Remittances also have a strong positive effect on household income, with recipient households experiencing an average increase of 4.3 million Kips. Remittances from female migrants contribute even more significantly, with an average increase of 4.6 million Kips, compared to 4.0 million Kips from male migrants. In terms of poverty reduction, migration was associated with a 2.55% points decrease in poverty incidence. Households with female migrants experience a larger reduction in poverty, 5.27% points, compared to household without migrants. Remittances also play a crucial role in reducing poverty, with a 3.71% points overall reduction and a more pronounced 7.39% points reduction from female migrants’ remittances. Gender-specific analysis revealed that households with female migrants experience a 6.90% points reduction in poverty incidence compared to those with male migrants. Households receiving remittances from female migrants experience an additional income increase of 2.2 million Kips and a 7.73% points reduction in poverty. These findings underscore the importance of gender in understanding the economic impact of migration and remittances, particularly the significant contribution of female migrants to household well-being and poverty reduction.