The Impact of Large-Scale Migration on Poverty, Expenditures, and Labor Market Outcomes in Nepal

This paper studies the impact of migration on poverty, expenditures, and labor market outcomes in Nepal. Between 2001 and 2011, the share of male working age population abroad more than doubled, mostly due to young men leaving to work in Malaysia a...

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Main Author:	Shrestha, Maheshwor
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2017
Subjects:	MIGRATION POVERTY LABOR FORCE PARTICIPATION LABOR MARKET PUBLIC EXPENDITURE
Online Access:	http://documents.worldbank.org/curated/en/338751509560708416/The-impact-of-large-scale-migration-on-poverty-expenditures-and-labor-market-outcomes-in-Nepal http://hdl.handle.net/10986/28625

id	okr-10986-28625
recordtype	oai_dc
spelling	okr-10986-286252021-06-08T14:42:45Z The Impact of Large-Scale Migration on Poverty, Expenditures, and Labor Market Outcomes in Nepal Shrestha, Maheshwor MIGRATION POVERTY LABOR FORCE PARTICIPATION LABOR MARKET PUBLIC EXPENDITURE This paper studies the impact of migration on poverty, expenditures, and labor market outcomes in Nepal. Between 2001 and 2011, the share of male working age population abroad more than doubled, mostly due to young men leaving to work in Malaysia and the Persian Gulf countries. The paper studies the impact using instrumental variables as well as difference-in-difference methods. The findings show that increases in migration to Gulf-Malaysia explain 40 percent of the decline in poverty between 2001 and 2011. The estimates of the marginal propensity of consumption show that a $1 increase in remittance income increases consumption by $0.5, with the largest share going to expenditures on food. The paper also finds that migration increases school enrollment of children, particularly of girls. Furthermore, the findings show that large-scale migration in villages improves labor market outcomes for households without a migrant. An increase in village migration rates of 10 percentage points increases wages by 25 percent, and labor force participation by 4 percentage points. The participation effects are driven by increases in female participation in non-farm sectors, and increased male participation in agriculture. The wage effects are driven by higher agricultural wages for all, and higher non-farm wages for females. 2017-11-02T16:21:36Z 2017-11-02T16:21:36Z 2017-10 Working Paper http://documents.worldbank.org/curated/en/338751509560708416/The-impact-of-large-scale-migration-on-poverty-expenditures-and-labor-market-outcomes-in-Nepal http://hdl.handle.net/10986/28625 English Policy Research Working Paper;No. 8232 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Nepal
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	MIGRATION POVERTY LABOR FORCE PARTICIPATION LABOR MARKET PUBLIC EXPENDITURE
spellingShingle	MIGRATION POVERTY LABOR FORCE PARTICIPATION LABOR MARKET PUBLIC EXPENDITURE Shrestha, Maheshwor The Impact of Large-Scale Migration on Poverty, Expenditures, and Labor Market Outcomes in Nepal
geographic_facet	South Asia Nepal
relation	Policy Research Working Paper;No. 8232
description	This paper studies the impact of migration on poverty, expenditures, and labor market outcomes in Nepal. Between 2001 and 2011, the share of male working age population abroad more than doubled, mostly due to young men leaving to work in Malaysia and the Persian Gulf countries. The paper studies the impact using instrumental variables as well as difference-in-difference methods. The findings show that increases in migration to Gulf-Malaysia explain 40 percent of the decline in poverty between 2001 and 2011. The estimates of the marginal propensity of consumption show that a $1 increase in remittance income increases consumption by $0.5, with the largest share going to expenditures on food. The paper also finds that migration increases school enrollment of children, particularly of girls. Furthermore, the findings show that large-scale migration in villages improves labor market outcomes for households without a migrant. An increase in village migration rates of 10 percentage points increases wages by 25 percent, and labor force participation by 4 percentage points. The participation effects are driven by increases in female participation in non-farm sectors, and increased male participation in agriculture. The wage effects are driven by higher agricultural wages for all, and higher non-farm wages for females.
format	Working Paper
author	Shrestha, Maheshwor
author_facet	Shrestha, Maheshwor
author_sort	Shrestha, Maheshwor
title	The Impact of Large-Scale Migration on Poverty, Expenditures, and Labor Market Outcomes in Nepal
title_short	The Impact of Large-Scale Migration on Poverty, Expenditures, and Labor Market Outcomes in Nepal
title_full	The Impact of Large-Scale Migration on Poverty, Expenditures, and Labor Market Outcomes in Nepal
title_fullStr	The Impact of Large-Scale Migration on Poverty, Expenditures, and Labor Market Outcomes in Nepal
title_full_unstemmed	The Impact of Large-Scale Migration on Poverty, Expenditures, and Labor Market Outcomes in Nepal
title_sort	impact of large-scale migration on poverty, expenditures, and labor market outcomes in nepal
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/338751509560708416/The-impact-of-large-scale-migration-on-poverty-expenditures-and-labor-market-outcomes-in-Nepal http://hdl.handle.net/10986/28625
_version_	1764467313893965824

The Impact of Large-Scale Migration on Poverty, Expenditures, and Labor Market Outcomes in Nepal

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