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Remittances and Expenditure Patterns of the Left Behinds in Rural China

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  • Démurger, Sylvie

    (CNRS)

  • Wang, Xiaoqian

    (GATE, University of Lyon)

Abstract

This paper investigates how private transfers from internal migration in China affect the expenditure behaviour 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.

Suggested Citation

  • Démurger, Sylvie & Wang, Xiaoqian, 2016. "Remittances and Expenditure Patterns of the Left Behinds in Rural China," IZA Discussion Papers 9640, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9640
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    2. Cheng, Zhiming, 2021. "Education and consumption: Evidence from migrants in Chinese cities," Journal of Business Research, Elsevier, vol. 127(C), pages 206-215.
    3. Horas Djulius & Nurul Qomariah & Iwan Sidharta, 2017. "Is Remittance Changing the Consumption Patterns of Migrant Families?," Business, Management and Economics Research, Academic Research Publishing Group, vol. 3(7), pages 78-84, 07-2017.
    4. Azizbek Tokhirov, 2018. "Remittances and subjective well-being of the left behinds in Tajikistan," Economics Bulletin, AccessEcon, vol. 38(4), pages 1735-1747.
    5. Wenjia Peng & Brian E. Robinson & Hua Zheng & Cong Li & Fengchun Wang & Ruonan Li, 2019. "Telecoupled Sustainable Livelihoods in an Era of Rural–Urban Dynamics: The Case of China," Sustainability, MDPI, Open Access Journal, vol. 11(9), pages 1-17, May.
    6. Chuhong Wang & Xingfei Liu & Zizhong Yan, 2021. "Temporary versus permanent migration: The impact on expenditure patterns of households left behind," Review of Economics of the Household, Springer, vol. 19(3), pages 873-911, September.
    7. 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).
    8. Li, Changsheng & Ma, Wanglin & Mishra, Ashok K. & Gao, Liangliang, 2020. "Access to credit and farmland rental market participation: Evidence from rural China," China Economic Review, Elsevier, vol. 63(C).
    9. Hua, Xiaobo & Kono, Yasuyuki & Zhang, Le & Xu, Erqi & Luo, Renshan, 2019. "How transnational labor migration affects upland land use practices in the receiving country: Findings from the China-Myanmar borderland," Land Use Policy, Elsevier, vol. 84(C), pages 163-176.
    10. Rahman, Md. Matiar & Hosan, Shahadat & Karmaker, Shamal Chandra & Chapman, Andrew J. & Saha, Bidyut Baran, 2021. "The effect of remittance on energy consumption: Panel cointegration and dynamic causality analysis for South Asian countries," Energy, Elsevier, vol. 220(C).
    11. Edwin Le Héron & Nicolas Yol, 2019. "The macroeconomic effects of migrants’ remittances in Moldova: a stock–flow consistent model," Post-Print halshs-01885949, HAL.
    12. Ma, Yechi & Chen, Zhiguo & Shinwari, Riazullah & Khan, Zeeshan, 2021. "Financialization, globalization, and Dutch disease: Is Dutch disease exist for resources rich countries?," Resources Policy, Elsevier, vol. 72(C).
    13. Yang, Guanyi & Bansak, Cynthia, 2020. "Does wealth matter? An assessment of China's rural-urban migration on the education of left-behind children," China Economic Review, Elsevier, vol. 59(C).
    14. Ankrah Twumasi, Martinson & Jiang, Yuansheng & Asante, Dennis & Addai, Bismark & Akuamoah-Boateng, Samuel & Fosu, Prince, 2021. "Internet use and farm households food and nutrition security nexus: The case of rural Ghana," Technology in Society, Elsevier, vol. 65(C).
    15. Ma, Wanglin & Zhou, Xiaoshi & Renwick, Alan, 2019. "Impact of off-farm income on household energy expenditures in China: Implications for rural energy transition," Energy Policy, Elsevier, vol. 127(C), pages 248-258.

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    More about this item

    Keywords

    remittances; labour migration; expenditure behaviour; left-behind; China; propensity score matching;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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